Are attitudes around car ownership changing?
With the growth of ride-sharing, and entrepreneurial startups supposing that car ownership is shrinking, what are the facts?
For a lot of us, particularly on this very site, owning a car is not just a method of transportation. Our cars are a statement about us, sending a message to the world that we are not just automatons in a capsule, trudging onto our next destination to eke out our pitiful existence. We are people of taste and discernment, and we choose our cars to serve a function as well as speak to our hearts about who we want to be.
I drive a VW Golf. Make your own conclusions.
A general consensus I've personally observed in some recent articles has suggested that we are a shrinking portion of society, with people shifting to ride-sharing for their travelling needs. This isn't limited to just those boring catch-all demographics of "Boomer" and "Millennial", as Boomers are being seen to be participating in ride-sharing and Uber driving.
Image by Barna Bartis (@barnabartis) on Unsplash: "Hi. I'm your Uber driver!"
The implosion of the economy after the Global Financial Crisis and the subsequent decimation of retirement investments did cause a delay to retirement for many in the Boomer generation. That many of them seek alternative and/or secondary forms of income through flexible hours afforded by the likes of Uber or Lyft is not particularly surprising. Boomers are also reported to be moving to inner-city locales in order to shorten their commute times and have access to all the cultural and consumable facilities, such as shops, restaurants and entertainment.
So, for all the yawnsome yesterday's memes of "Ok Boomer", they are utilising newer technologies and seeming to enjoy the freer lifestyles that these afford. Excuse me. I'll be over in the corner, huffing petulantly like the Gen-Xer that I am, using dank memes and the ol' Impact font over pictures of lolcats. Very stern. Much jealous.
The article by Wharton University of Pennsylvania reads, "A 2015 Uber study found that nearly a quarter of its drivers were older than 50. For many, the primary motivation is extra income, often needed to supplement retirement savings."
A 2015 Uber study found that nearly a quarter of its drivers were older than 50. For many, the primary motivation is extra income, often needed to supplement retirement savings.
One-in-four may be a minority, but it is still a sizable statistic.
But the contention that car ownership may dwindle is counter to a January 2019 report by Schaller Consulting titled, "The New Automobility", which compiled data form the US Census Bureau on vehicle ownership. The data showed that while the number of car-free households grew, so did actual car ownership. This is possible by the boom of vehicles in suburban areas, although such a boom has the extra byproduct of leading to more vehicles on the roads performing the daily commute.
Thus leading to more congestion and traffic.
The idea that Millennials are somehow disinterested in car ownership and would instead prefer to use more innovative solutions perhaps doesn't consider a possible reality on the ground that this generation cannot afford a vehicle at this time. But, as economies recover and jobs return - as per a typical cycle - Millennials who had previously avoided a car purchase and later find themselves in a position to afford one will go out and just buy one. Cos they can.
If true, this could prove to be troublesome for companies and sky-high ambitious startups who are banking hard on people preferring sharing and a subscription over actual car ownership.
Image: Jobyaviation - hoping to get people off our roads. Literally and figuratively.
Even the MIT Center for Energy and Environmental Policy Research is dubious that Millennials are somehow different in terms of attitudes toward car ownership, stating in their conclusion that once accounting for controls, "... there is no evidence of a difference."
This all assumes that transportation is a zero sum game as well - the assumption that an increase in ride-sharing will result in a reduction of cars. Instead, as populations stand to grow, we consider that there's a very real possibility that both will grow, with those just starting out in their professional lives delay a car purchase until such time they can afford one.
And then they go back to ride-sharing once they're older and approaching retirement. The cycle of life continues its merry lap of the carousel.
So, the takeaway is that perhaps we should temper any dreamy and doe-eyed hope that all the non-enthusiasts will herd themselves into driverless cars, leaving the open highways bereft of other drivers (who are, of course, ALL worse than us). That particular utopia, for the time being, would appear to be some distance away.
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Comments (2)
Yes ownership is changing with the advent of EVs the cost is ridiculous. Those little city cars with 200 mile range are an arm an a leg! No one I know, 70s child, can go out and buy one if they wanted! A car May in time become a hobby rather than a must have, but I’m too old for change, I like my car to belong to me.
I am also a 70s child and, like you, can’t afford an EV. I would love to trade my Golf mk7 for a Netflix-like subscription and have a driverless car stop in front of my door to take me to work, the shops or the football. If it is true that an EV is much...
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