Over the last one-hundred years the technical advancement not just in car technology, but in the way they are produced has changed dramatically.
Up to the 1960’s cars were initially a luxury item available to the wealthy who could enjoy the convenience of individual travel. Over the last sixty years mass production and economies of scale brought low-cost cars owned, managed, maintained and operated by one family.
The current ownership model therefore works in terms of cost and availability for a wide range of income levels in both developed and lower-income economies provided through finance schemes and a large second-hand car market.
This column has advocated travel by bus and train and I have usually taken that advice, though public transport is a shared experience which works best at times of day convenient for the majority of users.
Ten years ago the º£½ÇÊÓƵ Department of Business, Innovation and Skills report, Unlocking the Sharing Economy, suggested ride sharing and car clubs as a means of reducing the congestion and emissions level in cities particularly in the peak traffic periods but also at all times of the day.
The Minister, Matt Hancock (remember him?), in his forward to the report appeared to indicate a ‘surprising degree of support to move away from ‘traditional’ car ownership’. ‘Owning a car is no longer the status symbol it once was. Joining a car club means not worrying about MOT’s or car parking’
The ‘surprising degree of support’ has not arisen simply because the individual car journey is the most convenient travel pattern despite being used for around an hour in a 24-hour period.. Yet they continue to use up space and incur funding and parking costs.
It could be argued therefore that the present car ownership pattern has to be re-evaluated. Car use ought to be a key sector within the ‘great sharing economy’ where the asset (the car) is shared with others.
This concept is based on:
- the shift towards sustainable transport particularly through electric vehicles and high-cost greener technologies; and
- the increased utilisation of spare transport capacity available in an existing capital asset at a greater efficiency level.
There is already car-sharing or car-pooling in particular for journeys to work, leisure or the school run as a well established means of saving money and reducing the number of cars on the road. This in turn reduces air pollution, carbon emissions and traffic congestion.
The concept here is repositioning car ownership and usage into a mobility solution to cater for travellers with no access to a car.
One might reasonably say that taxis, car rental companies and existing car-sharing platforms already provide these services. They do, on a fairly large scale, but represent a small proportion of total journeys made.
Online platforms or the car owner’s smartphone data link provide the communication of coinciding transport routes and times – an essential for journey sharing so enabling a user to identify which car might be available, and when, in their residential or work area.
The process to expand the availability of shared transport at a reasonable price to the traveller could be through the expansion of existing platforms or within Wales incorporated into the public transport network through the Transport for Wales brand, Traveline Cymru, or through county councils.
It also requires the preparedness of private car owners to carry passengers to a wide range of destinations; though an owner might not like their car being used and driven by strangers. The incentive for the owner is receiving an income from an otherwise idle car which as with any other asset helps pay for it while at the same time catering for more travellers. It is a perfect example of ‘sweating’ the assets. It could equally apply to government departments and companies with unused cars / vans in the evenings and weekends.
Insurance companies have also to significantly change their attitudes without the disincentive of premium increases. At present they do not cover ‘hire or reward’ so drivers (or corporate owners) may only ask passengers for fuel and running cost of the journey. Otherwise, if ride providers make a profit they become taxi drivers, thus requiring a licence and, if applicable, ‘the knowledge’ equivalent.
The sharing economy is not an easy move which might explain why little has happened over the last ten years. However, with the increased use of electric, autonomous vehicles, manufacturers could make and provide the vehicles and with communications organisations providing the technology infrastructure.
Professor Stuart Cole CBE is Emeritus Professor of Transport (Economics and Policy), University of South Wales.
