Volkswagen to Launch Car-sharing Service with Electric Vehicles in 2019

Bhupinder Kour July 16, 2020
Volkswagen to Launch Car Sharing Service in 2019

On demand car sharing economy is all set to see a new entrant – Volkswagen. VW is all set to make an appearance in the on-demand automobile economy in 2019 – A news announced by Volkswagen Board Member of Sales, Jürgen Stackmann, in an event that was organized in Berlin today.

While the auto-mobility giant is only focusing on German nations at present, they plan on expanding into major cities in North America, Europe, and Asia by 2020.

Once the WE platform, under which Volkswagen is launching the car-sharing service picks up, the brand plans on expanding the service to support micro-mobility solutions through I.D. Streetmate Electric Scooter and I.D. Cityskater as well.

VW through its WE platform plans on entering two of the most profitable on-demand consumer segments – Carsharing and e-Scooters.

The reason why VW has planned on extending its services (beyond cars) to e-scooters is purely because of the demand that the latter is seeing in the present time from the urban cities that are crumbling under the traffic congestion.

Giveaway* e-Scooters are a fairly new trend in the Last Mile ride options, read all about the trend and knowhow much it would cost you to join the e-scooter uprising.

Joining Volkswagen in the carsharing sector is Renault, who also announced its plan to launch car sharing and ride-hailing scheme that would cover the French capital and nearby areas.

With big brands now entering the car sharing segment, the on-demand economy based on automobiles, that was assumed to have reached a point where there was little scope of new entry, has now once again come into the limelight.

While on one hand you have a ride sharing economy with players like Uber and Lyft, where the consumers travel in a Business to Consumer scenario, on the other you have Carsharing economy with players like BMW DriveNow where it’s purely consumer to consumer.

How is On-Demand Ride sharing different from On-Demand Carsharing service?

Let’s look at the difference in ridesharing and carsharing by comparing two of the major players of each category – Uber and DriveNow.

What happens in Ride sharing is that when you book a cab from Uber, you get a driver who picks and drops you from point A to point B, but in case of DriveNow or Carsharing, you book a car that you drive yourself from Point A to point B, so while one works on a business to consumer model, the other is entirely peer to peer.

Wish to Join the uprising of on-demand Car Sharing apps that is going to start again? Talk to our team of on-demand app development experts, today!

Bhupinder Kour
Content Writer
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