Car ownership is far from "a thing of the past," as Uber's CEO plans on making it, but a new survey shows that a substantial number of people who have tried transportation network companies are forgoing the purchase of a car.
"In a recent survey of 2,000 adults ages 18 to 64 conducted by Frank N. Magid Associates, 18% of respondents said they had used Uber in the past year, and of those people, 22% said they are likely to hold off on buying," writes Tracey Lien, technology reporter for the Los Angeles Times working in the San Francisco Bay Area.
“It’s rare that a brand transforms the way we live in such a short amount of time, but that’s exactly what Uber has done,” said the study’s author and director of digital research at Magid, Andrew Hare. “Even if only a modest number of consumers begin to prioritize [rideshare] over ownership, the car industry is in trouble.”
The disruption could affect more than just auto manufacturing. Fewer car owners means less auto insurance purchased, fewer car repairs and maintenance purchased by individual owners.
Prior posts noted the disruption of transportation network companies not only to taxi service but to transit as well.
Hat tip: Heather Caygle and Lauren Gardner, Politico Morning Transportation (Oct. 07).
Read the full story: Who needs a new car when there's Uber? Riders hold off on upgrading wheels
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