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Types of Carsharing Services

  • July 15, 2021

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Most large and busy cities worldwide are adopting car sharing services due to their numerous benefits. Many entrepreneurs are adopting the trend. An example is a car sharing Phoenix. Due to its individuality and flexibility, different types of people use car sharing services every day. They include:


These types of users have so many errands to run and want to avoid public transportation. They may need to shop, pick up the children from school, visit relatives, and pick up clothes from the dry cleaner. Car sharing offers a lot of flexibility in doing all the activities.

Business people

Car sharing offers them easier and cheaper options of traveling from one city to another. These types of users can arrive at meetings on time using their suitable preferred vehicle.


Mainly includes young women and men who don't want to own a car. Ownership comes with its costs, and many millennials are saving up, or they don't want to own a car. They may either use bicycles, car sharing services, or public transportation according to their needs.


Mostly, trips into the city are reduced, and parking can be difficult on the weekend. Car sharing services allow you and your friends to select a small-sized type of car that can fit into any parking space.


Car sharing provides a great alternative for people touring a new city or town. Additionally, they can key in the coordinates to the car's computer and arrive at various destinations without getting lost.

The two types of car sharing services are traditional, where the company owns the cars. The second is P2P (Peer-Peer car-sharing), where one rents the vehicle from lenders and private car owners. Examples of traditional car sharing services are:

Examples of P2P car share:

  • Getaround
  • Turo

Each car sharing service has its benefits and drawbacks. Generally, the Zipcar is more available in more cities as it has been on the market for the longest time, since 2000. Additionally, it’s available in many airports and offers a variety of vehicles to select from. Turo offers lower weekly and daily rates compared to other car sharing services.

Moreover, one must consider availability. Companies with few cars will frustrate customers, while those with many cars will have higher costs passed to users and less utilization. Car sharing companies must find a balance between service and commercial demands. Several other factors have hindered the growth of car sharing. They are;

Geographical coverage

To increase the user base, companies must be willing to support the growth by increasing the coverage. Car sharing users want to maximize in a bigger geographical area. P2P car owners may also decide to expand into other cities to satisfy the demand.

The apps and websites

The technology supporting car sharing must be reliable and accurate. Customers don't want to order a car being shown on the map, but it is not there in reality. Companies and peer organizations should be willing to invest in IT experts as well.

Access to support

Additionally, companies must be willing to invest in training qualified personnel to help in support services. No customer on a 2-hour journey wants to get stuck on the road for 30 minutes waiting on the phone to report some car damage.


People tend to demand car sharing services of similar types at the same type. The demand for these services varies depending on the time of the year, month or day. For example, during holidays, rush hours, and school runs.

For entrepreneurs willing to venture into this type of business, there are many opportunities in this business field. Also, one may decide to rent their car out to enjoy a passive income.