AutoPoint Blog

Why Ride-Sharing Could Be Your Dealership's Best Friend

Posted by Hilary Biggart Tuesday, April 05, 2016

Uber spells major trouble for your sales department. More people using easily-accessible, cheap vehicle sharing services deters personal car ownership and fewer personal car maintenance. Plus, millennials are less interested in vehicle ownership and driving than their parents anyway. So as ride sharing continues its way up, your vehicle sales are on their way down.

Or so they say.

But what if we told you ride-sharing services might not be the harbinger of doom you thought they were? AutoBlog and Forbes recently published articles about a study done by Deutsche Bank AG, who says ride-sharing services might actually spell big business for your dealership.

How? We’ll give you the highlights.

Ride-Sharing Vehicles Travel More Miles

A single ride-sharing vehicle travels many more miles than their personally-owned brethren. They’re on the road all the time and many of their miles are what the analysts at Deutsche Bank AG call “empty legs.” Meaning, roughly half the vehicle’s time on the road is spent driving around empty, without any passengers on board.

You already know what this means. More mileage means more services and repairs. Great news for your fixed ops department and your revenue streams.

Ride-Sharing Vehicles Die Young

The average age of a vehicle on the road has reached an all-time high of 11.5 years. But that doesn’t matter to ride-sharing vehicles. These cars are going to phase out much sooner than personally-owned vehicles. Analysts predict your average ride-sharing vehicle will only last three years. That’s nearly ¼ the lifespan of a personal car.

Higher turnover means more sales for you. And as ride-sharing continues to grow in popularity, that just means more ride-sharing vehicles on the road.

Ride-Sharing Ignores the Boom & Bust Model

Your sales department too often succumbs to the whims of the markets. Ups and downs in the economy can dramatically impact your sales figures. (Remember 2008 when new vehicle sales hit a 10-year low?) But you have fewer worries about credit scores, stock drops, or the unemployment rate with ride-sharing. Vehicles will still be driven more frequently, need more service, and be replaced faster.

In fact, when the ride-sharing companies themselves start buying up fleets of cars, your sales future starts looking pretty promising.

You can stop shaking your fist at every Uber or Lyft car that drives by. Those ride-sharing companies could be doing you a huge favor. You might not notice this change this year, or even next—but over time, higher miles, more frequent service, and faster turnover could spell big business for your dealership. 


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