‘#Boycott Millennials’ saw a rise in engagement on Social Media after Nirmala Sitharaman stated that the automobile sector is facing several issues because millennials are choosing online platforms like Ola and Uber to commute.
This may or may not be true, but few things were conveniently overlooked in the statement, like the rise in interest rates on bank loans, the rising fuel prices and the inflation that is making it harder for people to own a vehicle.
All in all, this draws attention to the fact that people do want to commute in vehicles rather than public transports, but many factors are stopping them from owning one.
But apart from resorting to platforms like Ola and Uber, what other choices do they have? This is a multi-pronged challenge faced both by the people and by the business as to which business model to opt for that can be a game-changer for them. Let’s have a closer look:
The Vehicle Subscription Model
This is one of the relatively newer cookies in the market and is drawing eyes form many people. It is roughly similar to the subscription model of online video platforms like Netflix.
In this model, people can subscribe to a vehicle for a fixed period, months in most cases, and use it after paying a certain subscription fee. This fee will include the using cost, insurance cost, maintenance cost and other costs that will cover the usage of the car that will be under the user’s control for a particular period.
One of the major advantages is that once your current subscription ends, you can change your car model with the one you are pleased with.
Ride-Sharing
Did you know the number of cars owned by Uber around the world for consumer riding is ZERO?!
Uber is a great example of one the 2 Ride Sharing business models, many people can use the same vehicle for their daily commute and not own one.
Another subcategory in this model can be businesses that own their cars and do the same things like Uber and Ola.
Self Drive Cars
‘Self-Drive cars’ is another fairly new model. This model allows people to rent a vehicle for a very specific period. People rent it and return it once the need for it is fulfilled.
Zoom Cars is one of the best examples that allows you to rent a car for a few hours or a day or even a few days.
Conclusion
In conclusion, let’s face it, vehicles are expensive, and not everyone can afford it. But on the brighter side, there are multiple options to choose from to experience the vehicle lifestyle.
And for all the entrepreneurs out there, the demand for commuting through cars and other vehicles is increasing and there are many business models to choose from. What will you go for?
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