The sharing economy is dynamically shifting how products and services are consumed, and creating exponential value for companies that link unused capacity with demand. In the automobile industry, its impact is transformative.
Accordingly to a report by PwC, consumer preferences are changing and transportation options are increasing, as a result, ‘automotive companies today are rethinking their positioning – re-framing themselves as providers of mobility, not merely manufacturers of vehicles.’ But, this space is crowded with nontraditional players from Google to Uber, and Zipcar to Lyft. PwC further reports that, ‘legacy manufacturers must find ways to add unique value to consumers’ mobility – perhaps becoming a purveyor of mobility at large, from selling cars for purchase to facilitating ride-sharing.’
As if looking into PwC’s crystal ball, that’s just what General Motors tried to do! Earlier this week, San Francisco Business Times Techflash reported that General Motors offered to purchase ride-hailing giant, Lyft for $6 billion; however, reportedly, Lyft’s CEO believed the company’s value would grow to $12 billion by year end and ultimately, no deal was reached.
Regardless of whether GM and Lyft reach agreement, the sharing economy is revolutionizing transportation and, relatedly, how cities address mobility. As the sharing economy grows, we can expect to see more collaboration and integration of transportation-related companies. As transportation attorneys, we have a wide network of transportation resources, and we assist clients with their transportation strategies and work with local governments on transportation-related issues.
For more information about the sharing economy from PWC, click here.
For more information about the recent article addressing GM and Lyft’s discussions, click here.