Car-sharing as a mobility service allows users to hire cars for a short period, often via an app. Cars are usually available at the curbside, prioritizing ease of use and convenience for short trips. This service differs from car hire, which focuses on longer-term hire from several days to weeks and is usually available in more centralized pick-up locations such as airports or city centers. Car-sharing is often posited as an alternative to car ownership for drivers requiring a car for occasional trips.
European car-sharing market dominated by Share Now
As car-sharing has increasingly become app-based, the sector has become integral to the European mobility-as-a-service (MaaS) offering. The European car-sharing market leader, Share Now, was acquired by Free2move in 2022, which offers a range of services, including car hire, electric charging, and ride-hailing alongside car-sharing.Share Now held a 16 percent market share in 2022 and operated in 17 European cities. Its closest competitor in the European market is Zipcar, which had an 11 percent market share during the same year. Both operators are examples of a trend of established automotive companies entering the car-sharing market. Share Now emerged from car-sharing services operated by Mercedes-Benz and the BMW Group and is now owned by Stellantis through its parent company, Free2Move . Zipcar, meanwhile, is owned by one of the world's largest car rental companies, the Avis Budget Group.
Electrifying the car-sharing sector
The question of electrification in the passenger car sector is not only affecting private passenger cars but is also facing the car-sharing industry. Of the cars in the Share Now fleet, a little under a third are electric vehicles. Several car-sharing providers also operate fully electric fleets. This group includes Zity, which operates in France, Italy, and Spain and accounts for seven percent of the European market.Electrification in this sector is associated with similar challenges as in the private car sector, including the availability of charging infrastructure and range anxiety. The sharing sector's specific challenges and potential solutions are slightly different, though. Shared cars must be charged between hires or at the end of the day, which can be challenging, especially in free-floating car-sharing schemes. Nonetheless, electrification is progressing among car-sharing providers. In 2022, 23.3 percent of the German shared car fleet were battery-electric or plug-in hybrid electric vehicles; electrification in the private passenger car fleet during the same time stood at 2.6 percent.
