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    Car and Ride-Sharing Services Not Posing A Threat To Buying and Owning A Car


    • Car and Ride-Services Bringing the End of Car Ownership? Not so fast!


    With the rise of services of car and ride-sharing services such as Uber and Lyft, a number of people have said this would begin the downfall of buying and owning a new vehicle in the U.S. But a new study commissioned by Kelly Blue Book says that isn't happening for the majority of the country.

     

    The study revealed many Americans consider vehicle ownership to be more convenient, reliable, safer than car- and ride-sharing services. It also revealed that 76 percent of respondents that use these services are planning to buy or lease a vehicle within the next two years.

     

    "While there are numerous benefits to ride sharing and car sharing, our data reveals that owning a car still reigns supreme, with reliability, safety and convenience all being major factors," said Karl Brauer, senior analyst for Kelley Blue Book.

     

    Other findings of KBB's study include,

    • 73 percent of respondents said they have heard of these ride-sharing services, but only 16 percent have used them. This is similar to car sharing services as 43 percent said they have heard of them, but only 7 percent have taken advantage.
      • Most of the respondents using these services are young people living in urban environments. This makes sense as owning a vehicle in this environment is more of a pain.

      [*]Car and Ride sharing services are seen more as substitutes for taxis and rental cars. [*]Affordability was the top reason given respondents who don't own a car.

      • Only 5 percent said using a ride-sharing service was the reason they don't own a car. 3 percent said gave the same reason for why they use car sharing services.


     

    Source: Automotive News (Subscription Required), Kelly Blue Book

     

    Press Release is on Page 2



    Kelley Blue Book Study Reveals Ride-Sharing, Car-Sharing Services Do Not Pose Threat To Car Buying

    • KBB.com Finds Americans Not Ready to Give Up Freedom Associated with Vehicle Ownership


    IRVINE, Calif., March 10, 2016 /PRNewswire/ -- The results are in, and according to Kelley Blue Book, ride- and car-sharing is not an imminent threat to new-car buying and vehicle ownership, despite the growing number of services being offered to consumers. This is just one of many interesting findings from the recent 2016 Kelley Blue Book Ride Sharing/Car Sharing Study, released today by KBB.com, the vehicle valuation and information source trusted and relied upon by both consumers and the automotive industry.

     

    Commissioned by Kelley Blue Book and conducted by Vital Findings to understand the motivations behind ride-sharing and car-sharing usage, as well as opinions and behaviors surrounding current and future transportation, the survey found that these sharing platforms primarily are used as substitutes for taxis and traditional rental car companies, and have very limited impact on current or future vehicle ownership. In fact, the expected transportation method of the majority of Americans that currently own or have access to a vehicle (74 percent) is to drive themselves in the next six months. When asked what statements about owning or leasing a vehicle respondents agree with, 80 percent completely or somewhat agreed that owning or leasing a vehicle provides a sense of freedom and independence, followed by 62 percent that completely or somewhat agreed that owning or leasing a vehicle gives you a sense of pride/success.

     

    Ride-sharing services, including Uber and Lyft, among others, use a Smartphone app for consumers to request and pay for a ride on demand from drivers who typically own the cars they drive. On the other hand, car-sharing companies, such as Getaround, ZipCar and Car2Go, among others, provide consumers with the opportunity to borrow vehicles and drive themselves, using a Smartphone app to schedule, unlock and pay for borrowed vehicles.

     

    "Ride- and car-sharing services are getting a lot of attention these days, and we wanted to better understand the current landscape of these app-fueled platforms and how they may impact both consumers and the auto industry moving forward," said Karl Brauer, senior analyst for Kelley Blue Book. "While there are numerous benefits to ride sharing and car sharing, our data reveals that owning a car still reigns supreme, with reliability, safety and convenience all being major factors."

     

    Looking down the road, the field is relatively level for potential ride-sharing providers to enter the market with more than one-third of respondents (37 percent) giving the most consideration to companies with a ride-sharing app, followed closely by rental car companies (32 percent) and taxi/limo companies (26 percent). In addition, 24 percent of those surveyed also would consider vehicle dealerships as a potential ride-sharing provider over vehicle manufacturers (16 percent) and individuals with a vehicle (15 percent). Respondents were least likely (14 percent) to consider tech companies as potential ride-sharing providers.

     

    Similar to ride-sharing, the opportunity for new car-sharing services to enter the market is fairly level, as traditional vehicle rental companies (36 percent), companies specifically created to provide vehicle sharing (33 percent), and notably, vehicle dealerships (31 percent) were among the most considered car-sharing providers among respondents.

     

    Sample of Additional Findings from 2016 Kelley Blue Book Ride Sharing/Car Sharing Study

    • Awareness Doesn't Mean Use: Nearly three-quarters of respondents (73 percent) are aware of ride sharing, but only 16 percent have actually used these services, with Millennials and city dwellers leading usage. As for car sharing, 43 percent of respondents are aware, but only 7 percent use these services.
    • Still Planning to Buy or Lease: Vehicle-sharing services are viewed as substitutes for taxis (41 percent) and rental cars (39 percent), with more than three-quarters (76 percent) of vehicle-sharing users reporting their intent to purchase or lease their own vehicle within the next two years.
    • Ownership Has Its Benefits: According to respondents, vehicle ownership is more reliable (81 percent vs. 19 percent for ride sharing; 78 percent vs. 22 percent for car sharing), safer (80 percent vs. 20 percent for ride sharing; 80 percent vs. 20 percent for car sharing) and more convenient (74 percent vs. 26 percent for ride sharing; 75 percent vs. 25 percent for car sharing) than depending on sharing services.
    • Budget Is Primary Ownership Factor: Among those surveyed who did not currently own or lease a vehicle, more than half of respondents (57 percent) name affordability, which also was the highest listed reason, as the main deterrent for not purchasing or leasing their own vehicles. Only 5 percent said utilizing ride sharing and 3 percent said utilizing car sharing as reasons for not owning a vehicle in the future.
    • Safety First: More than two-thirds of respondents (69 percent) believe that ride-sharing services are a great way to combat drunk driving; however, only 33 percent of those surveyed deemed ride-sharing to be safe. In fact, 48 percent stated they wouldn't be comfortable riding alone with a ride-share driver.
    • The national survey reveals the responses from more than 1,900 U.S. residents between the ages of 18-64 years old, weighted to Census figures by age, gender and ethnicity that have a variety of residential and ownership patterns.

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    Very interesting, this goes with what I have seen and heard from coworkers. I do also wonder how these services will fair with the recent news of the sexual assaults by drivers? We are in an interesting era where most people still see security and safety in owning their own ride.

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    "The study revealed many Americans consider vehicle ownership to be more convenient, reliable, safer than car- and ride-sharing services."

     

    ​the lingering effects of recession dried up the well of car business for a few years, and people lost income, and new drivers probably still didn't have steady income of any kind.

     

    Why would anyone not either family or a domestic relationship share a car.  Who pays for repairs, who gets to drive it, what happens if one crashes, who cleans it, etc.

     

    The highway system liberated America from having others dictate when you come and go.  And where you go.  Convenience.

     

    Your car is your own pod.  You don't HAVE to ride with others and deal with what MIGHT happen, like getting shot etc.

     

    Reliable, as long as your car is in working order, you can go when you need.  Waiting for someone else to come get you may never happen.

     

    Car sales is and always will be about people's cash flow, and the credit faucet.  

     

    There are times when it is more convenient to use a public transit, that is true.  But people as a whole still would prefer to have the car available to them as much as possible.

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    I have my own cars of course, and I'm also a heavy user of Uber too.    My use of Uber has no bearing on my future car purchases.

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      Hit The Brakes: Not All Self-Braking Cars Designed to Stop
      AAA Tests Reveal Automatic Emergency Braking Systems Vary Significantly ORLANDO, Fla (August 24, 2016) – New test results from AAA reveal that automatic emergency braking systems — the safety technology that will soon be standard equipment on 99 percent of vehicles — vary widely in design and performance. All the systems tested by AAA are designed to apply the brakes when a driver fails to engage, however, those that are designed to prevent crashes reduced vehicle speeds by nearly twice that of those designed to lessen crash severity. While any reduction in speed offers a significant safety benefit to drivers, AAA warns that automatic braking systems are not all designed to prevent collisions and urges consumers to fully understand system limitations before getting behind the wheel.
      “AAA found that two-thirds of Americans familiar with the technology believe that automatic emergency braking systems are designed to avoid crashes without driver intervention,” said John Nielsen, AAA’s managing director of Automotive Engineering and Repair. “The reality is that today’s systems vary greatly in performance, and many are not designed to stop a moving car.”
      In partnership with the Automobile Club of Southern California’s Automotive Research Center, AAA evaluated five 2016 model-year vehicles equipped with automatic emergency braking systems for performance within system limitations and in real-world driving scenarios that were designed to push the technology’s limits. Systems were tested and compared based on the capabilities and limitations stated in the owner’s manuals and grouped into two categories — those designed to slow or stop the vehicle enough to prevent crashes, and those designed to slow the vehicle to lessen crash severity. After more than 70 trials, tests reveal:
      In terms of overall speed reduction, the systems designed to prevent crashes reduced vehicle speeds by twice that of systems that are designed to only lessen crash severity (79 percent speed reduction vs. 40 percent speed reduction). With speed differentials of under 30 mph, systems designed to prevent crashes successfully avoided collisions in 60 percent of test scenarios. Surprisingly, the systems designed to only lessen crash severity were able to completely avoid crashes in nearly one-third (33 percent) of test scenarios. When pushed beyond stated system limitations and proposed federal requirements, the variation among systems became more pronounced. When traveling at 45 mph and approaching a static vehicle, the systems designed to prevent crashes reduced speeds by 74 percent overall and avoided crashes in 40 percent of scenarios. In contrast, systems designed to lessen crash severity were only able to reduce vehicle speed by 9 percent overall. “Automatic emergency braking systems have the potential to drastically reduce the risk of injury from a crash,” said Megan McKernan, manager of the Automobile Club of Southern California’s Automotive Research Center. “When traveling at 30 mph, a speed reduction of just 10 mph can reduce the energy of crash impact by more than 50 percent.”
      In addition to the independent testing, AAA surveyed U.S. drivers to understand consumer purchase habits and trust of automatic emergency braking systems. Results reveal:
      Nine percent of U.S. drivers currently have automatic emergency braking on their vehicle. Nearly 40 percent of U.S. drivers want automatic emergency braking on their next vehicle. Men are more likely to want an automatic emergency braking system in their next vehicle (42 percent) than female drivers (35 percent). Two out of five U.S. drivers trust automatic emergency braking to work. Drivers who currently own a vehicle equipped with automatic emergency braking system are more likely to trust it to work (71 percent) compared to drivers that have not experienced the technology (41 percent). “When shopping for a new vehicle, AAA recommends considering one equipped with an automatic emergency braking system,” continued Nielsen. “However, with the proliferation of vehicle technology, it’s more important than ever for drivers to fully understand their vehicle’s capabilities and limitations before driving off the dealer lot.”
      For its potential to reduce crash severity, 22 automakers representing 99 percent of vehicle sales have committed to making automatic emergency braking systems standard on all new vehicles by 2022. The U.S. Department of Transportation said this voluntary agreement will make the safety feature available on new cars up to three years sooner than could be achieved through the formal regulatory process. According to the National Highway Traffic Safety Administration, rear-end collisions, which automatic emergency braking systems are designed to mitigate, result in nearly 2,000 fatalities and more than 500,000 injuries annually. Currently, 10 percent of new vehicles have automatic emergency braking as standard equipment, and more than half of new vehicles offer the feature as an option.
    • By William Maley
      Back in June, we learned that Skoda (a Czech brand under the Volkswagen group) was investigating possibly entering new markets. One of those new markets was North America, a place where 20 percent of global car sales take place. At the time our original report, Skoda hasn't set a timeframe for a decision. Also as we noted, Skoda would need to get more crossovers and SUVs ready if they want to try and make inroads in the U.S.
       
      Speaking of SUVs and the U.S., a recent article done by Autocar piqued our interest. Skoda CEO Bernhard Maier said if they were to launch the brand in the U.S. in the near future, they would have their upcoming seven-seat Kodiaq leading the charge.
       
      “If we do decide to compete in the US, we will have one chance to make a good first impression. We feel that if we were there now, the Kodiaq would be a home-run car,” said Maier.
       
      Maier did stress that the U.S. isn't on Skoda's immediate radar. At the moment, the brand is looking closely at Iran, Singapore, and South Korea as possible new markets. But Maier isn't saying the U.S. isn't on their radar at all.
       
      “America is the one that we don't currently compete in with the biggest potential.”
       
      Skoda appears to have taken a page out of PSA Peugeot Citroën's playbook. Autocar says the automaker has begun a feasibility study as to whether or not it makes sense to enter the U.S.
       
      Source: Autocar
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