Uber and Lyft turn the wheels of the car: experts from the industry

TORONTO (Reuters) – Ride-hailing apps such as Uber Technologies and Lyft Inc. are expected to change the status of car-ownership to subscription-based services and shared ownership, auto industry experts said at a conference on Wednesday.

FILE PHOTO: the Logo of The taxi company Uber is seen on the roof of a private hire of a taxi in Liverpool, Britain, 15 April 2019. REUTERS/Phil Noble/Photo File

At the annual Collision Conference in Toronto, speakers said ride-hailing apps are also to play a role in the testing of automation for safety.

“Your phone with your car,” said Andre Haddad, CEO of Turo, a peer-to-peer car sharing company that allows users to make their rental cars for others.

Haddad said that while sales of cars have never been higher worldwide, people are realizing that owning a car is becoming more prohibitive by car payments, insurance, and a car park.

“Many more are realize they can have their car when they’re not using or rent to recover the high cost of ownership,” he added.

Uber said it is the biggest ride-hailing firm in the world with 91 million users worldwide, with a market share of 65 percent in North America.

Both Uber and Lyft went public this year, but trading under their offer prices.

Haddad said that the car ownership among young adults was on the decline, with fewer young adults under 25 years of buying a car.

At the same time, he said to the demographic data would stabilize and the demand for cars for events such as the weekend or vacation would keep.

Scott Hempy, CEO of Filld, a mobile gas delivery service, said labour trends such as remote working or at home had contributed to the reduced interest in cars, and that ride-sharing changes in the insurance sector per kilometer cost instead of a flat fee.

Ride-sharing fleets and taxis are expected to be the testing ground for automation, according to Zaki Fasihuddin, the CEO of Volvo Cars Technology. Fasihuddin said ride-sharing cars would be the first practical applications for autonomous vehicles, on the ultimate goal of reducing all traffic fatalities.

“The consumers have a choice,” said Fasihuddin. “Ride-sharing is a viable option. Today, people take it for granted, and that is a valid mode of transport.

Reporting by Tyler Choi; Editing by Phil Berlowitz

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