The world’s largest accommodation provider, Airbnb, owns no property and the world’s largest taxi firm, Uber, owns no cars. It’s one of the ironies of the sharing economy that you no longer need to be big to make it (really) big in some of the world's toughest industries – a development that has major positive implications for LeasePlan.
Impact of mass mobility
Ride-hailing is arguably the most important development to impact the world of mass mobility since cars became an affordable addition to the average family in the 1950s and 60s. In fact, according to Morgan Stanley, the global market for the sort of personal mobility solutions offered by the ride-hailing giants such as Uber, Lyft and Didi could be worth as much as $10 trillion – around 100 times larger than today's taxi market. The implications are enormous: in the future, as ride-hailing in all its forms becomes ubiquitous, hailing an Uber might become cheaper and more convenient than owning your own car. "In this context, you can foresee a situation in which a significant number of people prefer to tap into a ride-hailing service, such as Uber, rather than owning their own car," says LeasePlan’s António Martins.
Ride-hailing is a process of ordering a car, taxi, limousine or any other form of transportation pick up via an app. In most cases, the app matches a passenger with a driver and handles payment in return for a time and distance based fee.
While the economics of ride-hailing may take years to reach the point where it no longer makes sense for most people to own their own cars, the trends towards on-demand mobility is already leading to significant new growth opportunities for LeasePlan. “Companies like Uber don’t want to have cars on their balance sheets; they want to focus on their core business, which is matching drivers with passengers through advanced technology,” says António. “Providing cars is our core business, so we’re very well placed to help them meet that need.”