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The prospects of car sharing development
20 March 2019
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The rapid growth of companies that are engaged in car rental and a significant increase in demand for the service is likely to end in failure. So say experts who carefully study the market. The main reason for the fiasco is a huge competition. In their opinion, in the next 5-7 years, only a few “sharks” will remain in the rental market.

Literally, “car sharing” means per-minute car rental. This service became popular in the late 80s in the countries of America and Europe. In the Russian Federation, this service appeared quite recently (2015) and to this day is rapidly gaining popularity. It is actively used not only by megacities but also by small cities where there is an influx of tourists. According to statistics provided by Toursharing magazine, in the country today there are more than 30 rental companies, 80% of which are located in Moscow. On average, the number of vehicles of various classes is about 17 thousand per city. Over the last 5 months, the number of cars has grown by 5.5 units, which only confirms the popularity of the service. Now it is logical that Moscow ranked first in Europe and second in the world among cities providing rental cars.

Not a profitable business or a «goldmine»?

Taking into account the rhythm of life of a modern person, car rental is a solution to many problems, which allows you to remain mobile in any situation. In order to use car sharing, a driver just needs to register on the site or download the company’s application. It does not take much time, the main thing is that the customer may already has reached the age of 19 (23 years from other organizations), and had a driving experience of more than one year. There are companies that provide rent to persons without driving experience. How does the rental work? The user enters the application and selects:

  • car of a suitable class;
  • rental period.

After that, he can come to the specified place, open the car through the application (special code) and get behind the wheel. Pay for fuel and car maintenance is not necessary.

Per minute car share is much cheaper than a taxi. In this case, the tenant himself is the driver, so it is possible to independently plan the route. The average cost of a minute is 9 rubles.

In order to enter the rental market, a company needs to have a fleet with a capacity of 200 to 300 car units. The number of investments can reach up to 6 billion rubles. Most firms resort to loans, which should then be regularly extinguished. At the same time, it is necessary to constantly monitor the technical condition of the car, its cleanliness, and a full tank. All vehicles must be equipped with a location tracking system (for example, Glonass), and a security alarm. You need to create a web resource that will link navigation and positioning. It is also necessary to provide for possible emergencies, such as theft of machinery and accessories from cars (sometimes customer’s also stolen by themselves). That is why all the cars will be equipped with videocams in this 2019.

To maintain normal operation, a company needs its own office and staff, which needs to have pay wages; advertise its activities; pay taxes. It is not worth waiting for profits from this type of business from 6 months to 2 years.

Despite the disastrous income, most companies remain at a low level of profit due to the constant introduction of innovations and the replenishment of a number of vehicles.