Car Sharing of the Future: Unlocking a New World of Automotive Experiences Beyond the Commuter Paradigm
Car sharing providers around the world are struggling to run a profitable business. This is no surprise. Most services remain generic, fighting for the same target customers while following an uninspiring business model stuck in the commuter paradigm. The commuter paradigm is not really a difficult concept but it has many meanings. It can mean simply the context surrounding the commute—just getting from one place to another on a semi-regular basis. But it has a deeper meaning than that. It also refers to the belief, within a design approach, that this is the most viable opportunity for a car sharing business model. However, because they are doing this, and only this, car sharing companies are now seeing increasing competition from numerous shared mobility options on a multimodal front. For a car sharing service to become truly desirable and establish a sustainable business, people need to see value which goes beyond just gaining access to another commuter mobility option. The current modus operandi, the commute, may in fact be preventing a more innovative approach coming into being.
I argue in this article that the key lies in unlocking the door to a new world of automotive experiences, that in some cases may mean leaving the commuter paradigm behind altogether. Different modes of drivership exist beyond point A-to-B mobility; and the gamut of automotive experience is wide and nuanced. Embracing the approach of radical human centricity, I therefore propose the design of an automotive experience-based car sharing service that overcomes the fragmented character, high access barriers, and outdated user-unfriendliness of currently existing commercial offers in this space. Experience-based car sharing is a unique selling point and untapped market, which has a great potential to gain relevance among customers and revive the passion for automobility.
Current car sharing services are generic and follow an uninspiring business model
In cities such as Berlin where multiple providers are competing for the same target customers (DriveNow and Car2Go under the ShareNow brand, We Share, Miles, SixtShare), the market is over-saturated with different renditions of what is essentially the same service offering: short-term car rental with a free floating fleet in the same operative area, meant for personal A-to-B-mobility. I outlined this limited state of affairs in an earlier article to make the point that car sharing in Berlin is still not really car sharing. Service providers’ business models are similar and narrow—getting users hooked right from the start, trying to keep up the retention rate by selling minute packages as up-front credit, sending promotional messages, and fining users for misbehaviors.
All of these car sharing options seem increasingly generic and interchangeable from a human perspective. The only meaningful differentiators are the fleets’ brands, vehicle sizes, and per-minute/kilometer rental fees. This is why many users go for whatever provider offers the nearest vehicle at the cheapest price. In consequence, A-to-B mobility is an overly competitive necessity in which the battle for pricing has led into a downward spiral that cannot be won in a sustainable manner. Some providers are already cutting back their presence in various markets (NYT, 2019, December 18), which reverberates that current car sharing companies have a genuine business model problem.
Numerous shared mobility options compete on a multimodal front
Car sharing is not the only motorized mobility option in urban sharing economies anymore. Various technology companies are successfully reducing the friction points from the commuter experience, trying to limit issues of traffic, navigation, parking, and refueling as best as possible. Providers renting out a free-floating fleet of light electric motorcycles (e.g. Emmy, Cityscoot, Revel), e-scooters (e.g. Lime, TIER, Bird), and pedelecs (e.g. JUMP, Lime) are competing for road space and market share among those who do not want to break a sweat. App-based ride hailing (e.g. Lyft, Uber, Mytaxi), micro transit, and ride pooling services (e.g. BerlKönig, CleverShuttle) are rounding off the myriad of motorized individual mobility options, which make people think twice if they actually want to pilot through urban traffic and deal with parking themselves.
At the same time, multimodal mobility ecosystem platforms are emerging. Service providers such as Jelbi, Trafi, Whim, or door2door are staking their claims, promising journey planning and access to a wide variety of mobility solutions at the click of a single app. They serve as brokers or integrators of formerly competing mobility systems. What used to be one-trick-ponies, such as Uber and Sixt, have jumped on the multimodal bandwagon, offering convenient access to ride hailing, pooling, e-scooters, and pedelecs in former case; and rental cars, car sharing, e-scooters, and taxi hailing in the latter via their apps.
In these multimodal mobility platform cases, car sharing appears as just one of many pieces constituting a greater transportation puzzle. What is desirable from a human mobility and sustainability perspective, is less than ideal from an automotive industry perspective, however, as it reduces the prominence of the car and turns it into an even more replaceable service option. If the promise of swift and individual point-A-to-B mobility does not cut it anymore, the question emerges: what else does automobility have to offer? What are the use cases that decidedly call for automobility? And how may carmakers leverage their marques to avoid being reduced to a singular and seemingly generic mobility option that is overshadowed by multimodal mobility brands?
Different modes of drivership exist beyond point A-to-B mobility
The biggest issue I see is that most car sharing providers are currently trapped in the commuter paradigm. Free floating fleet car sharing is designed with a specific use case in mind that is tied to a single mode of drivership and user-car relationship—commuting from point A to B in which the vehicle primarily serves as a transportation device. As outlined above, in most densely populated urban areas this particular use case sees direct competition from a host of shared motorized mobility alternatives.
The automotive world, however, encompasses a myriad of context-dependent use cases, modes of drivership, and meanings associated with them that go far beyond the rather banal necessity of urban commuting. When people own their cars, they take their vehicles on scenic joy rides, they embark on weekend escapes, and some take their automobiles racing or off-roading. People haul stuff in their vehicles, they use them as private cocoons, intimate meeting spaces, or sanctuaries away from home. Motor vehicles allow the unique encounter of acceleration, high speed, and G-force when driven in a sporty manner. Vintage cars, on the other hand, are historical markers of engineering which enable people to observe and feel technological progress over time in the most visceral fashion. They also just look cool and feel good to drive.
In that regard, people assume different roles and corresponding identities when piloting a motor vehicle, depending on whether they are a commuter, weekend racing driver, delivery driver, road tripper, joy rider, taxi driver, soccer mom, chauffeur, ambulance driver, heist driver, pursuit vehicle driver, or classic car collector. These roles are tied to the relationships people form with the motor vehicle, seeing it as a work tool, safe family space, transportation device, sports equipment, or time capsule.
The location of driving—from downtown and highway, to inner city, racetrack, or off-road—has an impact on how people relate to a car. The aspect of passengers as partners, guests, customers, or patients has an impact. The tasks to be performed or objectives to be reached by car shape how drivership plays out in practice, too. And last but not least, it matters the way other road participants are regarded—whether they are seen as traffic, obstacles, competitors, enemies, or peers. As you can see, this is a rich and complicated world. It expands well beyond the confines of the commute.
The variety of different roles attached with vehicles is also ever growing and evolving, which e.g. the van life trend demonstrates. As outlined in a New Yorker article (2017, April 17) entitled “#vanlife, the bohemian social-media movement,” the author Rachel Monroe observes, “what began as an attempt at a simpler life quickly became a life-style brand,” meant to attract clicks, likes, and eventually turn into a profit. Hip and attractive young people successfully promote their supposedly independent and carefree, yet constantly wired life on the road. In stark contrast, its old brother—trailer park life—is very far from having a similar appeal. It is inextricably associated with the tired lives of those who have been economically and culturally left behind.
All of these aspects do not just create multiple meanings of drivership but entail different automotive experiences that go far beyond the traditional commuting scenario upon which most car sharing business models are built. In this respect, two questions need to be answered: what exactly constitutes an “automotive experience,” and how could it be turned into something a car sharing company commercializes?
The gamut of automotive experience is wide and nuanced
While there are countless definitions of what an experience is, I decided to build on the American philosopher John Dewey who considers an experience as the processual outcome of “an embodied and intentional mind consciously interacting with its environment” (as cited in Bleazby, 2013, p. 29). According to Dewey, “an experience is an activity which has consequences that affect us in such a way that we learn something from it” (p.29)—either about ourselves or the world around us. It involves the combination of an act and the realization that this act does something with us. An experience therefore encompasses a transformative potential that sticks out from the mundane everyday, giving it the characteristic of an event. This implies that for an act to turn into an experience, the actor must have a raised focal awareness towards what is going on—i.e. show a heightened level of engagement—and reflect upon what he or she did and/or underwent. Remember the first time you touched a candle’s flame as a kid, surprisingly encountered that it hurts, and realized that you should never do this again.
Applied to the world of four-wheeled mobility, an automotive experience occurs when a person interacts with an automobile. Their engagement elicits a reaction on an emotional or intellectual level. Consequently, this reaction leads to a realization about automobility and how one relates to it. These realizations produce understandings about our own preferences, likes, and dislikes regarding anything automobile-related, but also cover encounters that broaden our conceptualization of what an automobile is, how it works, how it can be used, and how it impacts us personally.
Providing a personal example to make the theory more graspable: You rent a Porsche Boxster convertible for the first time and blast down an unrestricted part of the Autobahn at 265 kph with the top down. You notice that your simultaneous encounter with speed, wind, engine sound, extreme focus, a hint of fear, and a boatload of excitement poses both an intoxicating pleasure as well as a formidable challenge. The sportscar turns out to handle exceptionally well, instilling you with confidence. You suddenly realize the appeal of motorsports on a physical and emotional level; and you conclude that even the most affordable yuppie-fied Porsche is a highly capable, purposefully built driving machine that can handle extreme situations. This is an automotive experience by definition, as it involves the aspects of interaction, reaction, and realization.
Automotive experiences can be novel for a person. Think of your first driving lessons in downtown traffic, nervously trying to figure out how the clutch works while being honked at by other road participants. Here, the realization entails that driving is a complex, potentially stressful practice which involves the coordination of various actions at once, while being exposed to, but also affecting, the immediate environment in a direct manner. Novel experiences like this tend to be formative for a person, as they shape initial impressions and relationships towards automobility. There is a good reason why car manufacturers such as AUDI AG (2020, April 28) target driving instructors with attractive offers to purchase their vehicles. As the company’s commercial vehicles website states, “you associate trust and fun with an Audi. That’s what the student driver feels right at the start of his driving career.” On the condition that the student driver does not fail eventually, the successful experience of learning how to handle a particular car and passing the driving test in it is hoped to lay the foundations for brand loyalty as early as possible.
But automotive experiences do not necessarily need to be novel or unique. They can also be affirmative of existing realizations and cement long-held notions towards certain aspects of automobility and drivership. For instance, going on the same commute with your long-time vehicle on a daily basis might convey the feeling of an uneventful routine marked by boredom and re-affirm the frustrating realization that commuting is nothing more than a necessary hassle.
Experiences have an active as well as a passive component, yet not every experience is necessarily wanted or desirable. For some people, as exemplified above, driving a fast sports car and encountering rapid acceleration is a highly pleasurable encounter that makes them realize how much they love the sensation of kinetic energy and asserting control over a powerful machine. This qualifies as an automotive experience that is both active and desirable. On the other hand, suffering a punctured tire on a rental car in the middle of a desolate hot desert road and struggling to change said tire is also covered by my conceptualization. It qualifies as an experience—albeit a more passive and undesirable one—if it leads to a realization with consequences, e.g. to check the tire tread depth and provided toolkit prior to embarking on a road trip the next time. We therefore need to address the question which points are pleasurable and which desirable aspects of the rich variety of automotive experience could be harnessed in the context of car sharing.
Harnessing what is positive and elevating what is pleasurable in the world of automotive
Based on several possible ideas of an ideal automotive future I would like to see materialize, the following automotive experiences bear potential for car sharing providers to extend their services beyond being just an enabler of commuting:
Trying out new types of attractive automobiles from different segments (e.g. sports cars, 4x4s, convertibles, luxury sedans, SUVs, vintage cars, camper vans)
Encouraging a multitude of engaging driving styles and developing skillful practices in a safe environment (e.g. cruising, racing, drifting, off-roading, emergency maneuvering, pursuit vehicle piloting)
Driving in different exciting locations (e.g. race tracks, off-road tracks, winding mountain roads, Autobahn)
Using motor vehicles for new lifestyle-related purposes (e.g. weekend escape, camping, remote office on wheels, private meeting space, mobile cocoon away from home)
Participating in guided excursions into interesting car sub-cultures (e.g. JDM tuning, Dekotora, hot-rodding, low-riding, hyper-miling, LeMons racing, retro-modding, van lifers; for more inspiration see a Jalopnik blog article on “the ten most polarizing automotive subcultures”, 2010, August 26)
As this non-exhaustive list demonstrates, the automotive world is extremely nuanced, bearing potential for gaining a rich variety of positive and desirable automotive experiences. I envision the offering of these automotive experiences as an add-on service to the free-floating fleet point-A-to-B- commuting option. These additional services should be accessible via one and the same platform, striving towards an integrated user experience. At the same time, there is value in imagining how one could activate what is pleasurable and desirable in current car sharing—i.e. how one could elevate the commuting experience, rather than just mitigating friction points, such as parking, refuelling, and the hassles of ownership.
Where is the experience economy in automotive?
The idea of selling experiences instead of just commodities or services is not new. With their 1998 hallmark article “Welcome to the experience economy” and their 1999 book “The experience economy,” B. Joseph Pine II and James H. Gilmore have primed generations of innovation consultants and marketing professionals to encourage companies to craft and stage “memorable experiences” for their customers. Inspired by that trend, other marketing scholars attempted to scrutinize what makes a commercial experience successful. For example, an empirical study conducted by Susanne H. G. Poulsson and Sudhir Kale (2004) found that “one or more of the following sensations and feelings need to be apprehended by the customer: personal relevance, novelty, surprise, learning, and engagement” (p. 271).
Unfortunately, the experience economy is a domain that is still nascent in the automotive world and largely untapped by rental car companies or car sharing providers, despite the prevalence of human-centered design in technology companies and consultancies the world over. In most markets, people who do not own a personal car only have limited options if they want to embrace further modes of drivership and gain new automotive experiences that are out of the commuting norm. Many metropolitan areas of the industrialized world feature a number of rental car company branches, limousine services, race tracks, off-road parks, and niche car clubs.
However, rental car companies are first and foremost in the business of renting out cars, not curating and selling experiences. And the vast majority of other options are so niche that they are neither accessible through a single point of contact nor institutionalized in a way that they would invite for casual consumption. Overall, it takes a whole different level of preparation, effort, and dedication of time to gain access and use these services. As the following critique shows, current commercial offers are designed in suboptimal ways that make it utterly inconvenient for a car-less person to gain new automotive experiences which transcend the commuter paradigm.
Current commercial offers are fragmented, limited in usability, and have high access barriers
While renting a mass volume production car for the weekend or for an extended joy ride can be done with all run-off-the-mill rental car agencies, such as Hertz, Avis, Europcar, Sixt, and Enterprise, pick-up and drop-off is restricted to dedicated service stations that are not always close by. Good rental car prices can only be obtained if one books well in advance. And it often resembles a gamble about what exact model of vehicle one will eventually receive since many providers only let their customers book vehicle categories that incorporate various brands and models. The offering is driven by considerations that are well outside of the potential of an experience, and consequently have little to do with how people use cars. Those that incorporate some experiential considerations look quite different.
Catering to a more eclectic and exclusive automotive taste, private membership-based car clubs, such as CCC (Business Insider, 2016, February 16) in New York City and its sister, Classic Car Club (2020, April 8) in London, have emerged. In exchange for a hefty signup fee and a monthly upkeep fee in the first case or the purchase of individual behind-the-wheel packages in the second, they offer rotational access to a stable of niche vehicles, including supercars and vintage automobiles.
Simply giving access to a special rental car that is novel to a specific person, however, does not automatically turn it into an experience. A Jeep Wrangler sitting in an urban grocery store parking lot probably does not generate the same focal attention or realization about ourselves and the environment as a Jeep Wrangler being navigated on a challenging off-road trail in the great outdoors. The fitting context of use also needs to be generated by the renter or a curator.
Racing a rented vehicle on a track is an entirely different challenge. Luxury sports cars can be obtained from most top tier rental car providers, but their terms and conditions usually exclude race track use. One of the few legal options to engage in the experience of racing without owning a private vehicle is your local Go-Karting track where customers can rent a small, low-powered racing machine for a few laps. Those interested in racing more potent supercars—say a Porsche 911 GT3 on Nürburgring—could employ services such as Rentracecar.com (2020, April 4) or use so-called “experience voucher” broker agencies, e.g. Jochen Schweizer (2020, April 4) or Mydays.de (2020, April 4), who organize guided, non-competitive 90-minute race car driving events. Most sportive luxury vehicle manufacturers have also installed their own branded racing experience events. Dubbed “Porsche Track Experience” (Porsche AG, 2020, April 4) or “Audi Driving Experience” (AUDI AG, 2020, April 4), affluent customers can book sports car driving instruction events that may cost several thousand Euros per session.
If maneuvering a 4x4 through challenging terrain floats your boat, there are dedicated parks—e.g. Offroadpark Berlin Brandenburg (2020, April 4)—and automobile club-run driving safety centers—e.g. by ADAC (2020, April 4)—that advertise off-road driving events with all-wheel-drive rentals. In the same spirit, some manufacturers promote off-road driving events for private customers at their domestic testing grounds—e.g. “Mercedes-Benz Offroad” (2020, April 4). Other carmakers provide the opportunity to drive their top-of-the-line 4x4 models on guided multi-day trips through the deserts of Namibia (BMW Driving Experience, 2020, April 4) or the mountains of Iceland (Land Rover Experience, 2020, April 4).
The big caveat with these services is that racetracks and off-road parks are scarce, they are usually located outside urban areas, and seldom serviced by public transport. Customers need a vehicle to get there in the first place, and these locations are typically outside the boundaries of the car sharing service’s operative area. Multi-day driving tours through remote exotic locations involve the logistical effort of taking vacation time and air travel, not to mention the high financial costs of luxury overland travel.
Compared with the flexible, affordable, ad hoc reality of what free floating fleet car sharing offers today, aforementioned options seem cumbersome and pose high access barriers. Designed as rare special events, they require individual registration with niche companies with whom one does not engage in a deeper long-term relationship. One-time usage cost is comparably high. The location and time of availability are extremely restricted.
Most importantly, the gamut of automotive experiences outlined above is currently not associated with short-term car rental at all. In the perception of most car sharing users, gaining new automotive experiences thus seems a distant pipe dream that remains reserved for the affluent and lucky owners of such niche vehicles. In consequence, I argue that this scarcity of practically and financially viable sharing options restricts the general population’s experience of automobility, which could be so much richer.
Experience-based car sharing is a unique selling point and untapped market
Experience-based car-sharing has the potential to make its selling point unique in regards to all other modes of transportation because of the rich and wide variety of experiences it can bring. A car sharing service that provides low-barrier, ad hoc access to a diverse range of automotive use cases and modes of drivership through a centralized platform gains the opportunity of becoming a preferred mobility partner for its users. Such positioning would elevate the role of a car sharing provider out of the commuter space and prevent it from being reduced to one of many equally viable options.
By embracing car sharing, users can avoid the negative connotations in regards to owning a car—especially in dense urban environments where the possession of anything bigger or more fun than an economy hatchback is often met with envy or environmentally motivated social disapproval. But avoiding car ownership is not just a matter of managing personal image and social perception. It is also the financially responsible thing to do if one wishes to occasionally rent and drive different types of vehicles for different purposes that could not be fulfilled with a single vehicle.
The market for experience-based car sharing is largely untapped. While BMW’s DriveNow went into the right direction by extending their fleet with Mini Cooper convertibles for sun-seekers and the progressive BMW i3 for those who wish to experience the electric vehicle future, other car sharing providers are largely stuck on the boring commuter train. Transforming a car sharing provider from a commuter-centric into an experience-based service is not merely a matter of adding more interesting niche cars to the fleet, though. It also involves the curation of experiences and the creation of an appropriate, safe context that lends itself to alternative vehicle use. The point is to raise focal awareness for certain pleasurable and desirable aspects of the automotive experience, rather than just avoiding or mitigating friction points.
This brings us to the fourth potential. Experience-based car sharing has the chance to generate passion for automobility among people again. Given that the automotive industry in the industrialized Western world has been moaning about a steep decline of public interest in cars for the past decade (Atlantic, 2018, May 27; FAZ, 2019, August 15), a new type of car sharing may just be the antidote. People could be encouraged to discover and try out cars in new ways to which they had previously been unaccustomed. This could elevate the overall appeal and social relevance of automobiles, culminating in a renaissance of automobility.
Radical human centricity is key for developing a sustainable new service
Designing a new kind of car sharing service requires a careful, contextually-aware approach that places people as humans—not merely as users or consumers—at its core. After all, the terms “user” and “consumer” are nothing more than specific roles ascribed by companies which reduce and dehumanize people to economic decision-makers (cf. Forbes, 2015, December 8). In stark contrast, people are never just consumers or users; they assume a myriad of different roles depending on the context of their lives, even simultaneously when using a service or consuming a product.
At the Human Futures Studio, we believe a better approach is to be found by applying a radical human-centric perspective that acknowledges the richness, contextuality, and cultural groundedness of people’s lives. Such perspective enables the design process to not only anticipate but also actively elicit certain behaviors and interactions among a collectivity. In other words, while people might be using a shared car to commute when pursuing their professional roles or quickly driving home after a night out, their lives offer various other instances where a motor vehicle is desired for a multitude of reasons, yet inaccessible. Instead of reducing humans to scenario-based consumers or users, the trick lies in anticipating these instances, decoding their complex ramifications, and generating an understanding how a shared car could fit into these different contexts. The goal of such an approach is to solve people’s mobility problems on multiple fronts and enrich their lives with new experiences in a sustainable way, rather than creating a gimmicky service for the sheer sake of economic novelty.
The design process of car sharing is still unfinished. The current business model that builds on the commuter paradigm has been nothing more but a minimal viable product. In order to create a future service that is less generic and more relevant in people’s lives, providers must expand their business model and become enablers of a wide range of exciting and pleasurable automotive experiences. As I tried to show in this article, the sphere of automobility offers a diverse range of drivership modes beyond point A-to-B mobility. It is charged with a variety of different meanings and offers a wide gamut of automotive experiences, which could all be harnessed in a new car sharing service. Since traditional rental car and current experience economy providers lack the accessibility, user friendliness, and integrated digital platform character the car sharing industry has established in recent years, the fit for expansion seems natural.
By incorporating a radical human-centric perspective into the design process, providers can ensure that they are not merely empathetic with their customers or responding to the most basic mobility needs, but designing within the full potentiality of what the human condition has to offer. This would open the door to a completely new and considerably richer world of automobility that has previously been out of reach to most people. This would give car sharing providers the opportunity to evolve beyond the commuter paradigm and become unique mobility partners that are preferred, rather than being reduced to one of many options.
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