Subscriptions are a major business theme. So are various forms of asset sharing sharing. (short-term rentals, ride sharing, bicycle rental) that monetize little-used assets.
It often is said the car ownership paradigm is challenged by ride sharing or car sharing “since cars sit idle 95 percent of the time.” All that might be true, but also irrelevant to many consumers, whose other “owned” goods also sit idle most of the time.
Think of showers, toilets, most of your kitchen utensils, seasonal recreational equipment, much of your clothing, most of your content (books, music, videos) or gardening equipment in areas where there is a winter.
The point is that consumer behavior does not necessarily change because an alternative becomes available. Convenience and overall cost of ownership make ownership a favored choice even if usage statistics suggest it is more efficient to rent capabilities.
Some 10 percent to 20 percent of urban users expect to be using ride sharing for regular commutes to work in 10 years, Ericsson surveys have found. Higher percentages expect “other people” to do so.
In other words, respondents say they will not be ride sharing, but expect others to do so. Of course, automobiles and other vehicles are deemed useful for purposes other than getting to work. Many consumers would still want to own their vehicles for other life pursuits.
“Renting rather than owning” as a trend will likely continue to grow. But change will not happen because higher utilization of assets is rational.
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