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Old 5th March 2019, 14:57   #1
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Default Lyft IPO coming up; says car ownership is in a state of permanent decline

According to a media report, Lyft founders, Logan Green and John Zimmer have filed their IPO (initial public offering) papers. They believe that car ownership is in permanent decline and they want to kill it.

Lyft IPO coming up; says car ownership is in a state of permanent decline-lyft_003_01_pickup_standard_day1.jpg

Lyft, which rivals Uber, claims that the world is at the beginning of a shift from car ownership to Transportation-as-a-Service, also known as TaaS. The company says that Americans spend more than US$ 9,500 annually on car ownership and operation, which is more than any other expenditure except housing. It also claims that the average cost of a new vehicle has gone up to US$ 33,000 and that more than 3,00,000 Lyft riders have given up personal cars in favour of the ride-hailing service.

Car sales fell by around 18% in the UK and 60% in Turkey from January 2018 to January 2019. While Turkey's economy has suffered a collapse, the UK has seen a fall in car sales due to Brexit and weaker demand. Car sales also fell in other parts of the world including mainland Europe and the US.

Source: Business Insider

Link to Team-BHP News

Last edited by ChiragM : 5th March 2019 at 14:59.
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Old 6th March 2019, 10:48   #2
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Default Re: Lyft IPO coming up; says car ownership is in a state of permanent decline

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Originally Posted by ChiragM View Post
According to a media report, Lyft founders, Logan Green and John Zimmer have filed their IPO (initial public offering) papers. They believe that car ownership is in permanent decline
I have no doubt in my mind that car ownership in developed countries is only going to fall. Here are two related threads:

1 (Economics of car ownership in light of the new services (Uber, Ola, Zoom))

2 (The Cheapest Generation - Why Millennials aren’t buying cars or houses)

While the Indian car market has also been affected by Ola & Uber, our country still has a lot of opportunity for growth (due to low penetration levels). Manufacturers just have to target the untapped segments properly .
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Old 6th March 2019, 11:16   #3
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Default Re: Lyft IPO coming up; says car ownership is in a state of permanent decline

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Originally Posted by GTO View Post
...
While the Indian car market has also been affected by Ola & Uber, our country still has a lot of opportunity for growth (due to low penetration levels). Manufacturers just have to target the untapped segments properly .
Related article in The Economic Times yesterday:
https://economictimes.indiatimes.com...w/68263048.cms

Quote:
Demand for cars and SUVs in top Indian cities shrank in the first 10 months of this fiscal year, as many urban dwellers postponed or dropped purchase plans because of increasing congestion on roads & lack of parking space, improving public transport options like metro rail, growing adoption of shared mobility and a general weak consumer sentiment. While growth moderated in small cities too, strong demand in rural India helped the country’s automobile market stay on the growth track, albeit moving at a slower pace than in recent years.
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Old 6th March 2019, 11:44   #4
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Default Re: Lyft IPO coming up; says car ownership is in a state of permanent decline

Speaking on the topic of car ownership, I gave up driving to work. The economics of car ownership v/s getting a chauffeur driven cab at your door steps at the click of a button is unmatched. I now spend < Rs. 6000/- per month on my office commute using Uber. This is considering 21 days of working in a month. Add to that, a 14L rupee car used to be parked for 22 hours a day in either my office or my home depending on which time of the day it was.

Sold one car for now and kept the newer one as a primary car at home. If and when the availability of TaaS improves, I'll bump the second car off too. Haven't yet decided.

The last two times I needed space to do an airport run to Bombay, I spent < 5000 per trip for an XUV and a Hexa with fuel as a part of the price. Compare that to owning a 7 seater car that you'll park and pay crazy money for EMI, maintenance, Insurance, repairs, etc.
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Old 6th March 2019, 13:04   #5
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Default Re: Lyft IPO coming up; says car ownership is in a state of permanent decline

Car ownership certainly does not make sense in an increasingly congested City like Bangalore. I bought a Ford Fiesta in 2012 and till date it has not even clocked 30k Kms!

I am certainly not a lazy slouch or an Automobile hater as I have owned several big bikes in the past and continue to do so, but those bikes too are not for daily commutes and are meant mainly for personal trips outside Bangalore and weekend getaways.

Different scenarios in which TaaS makes sense:-

1. Office commute:- The less said about the hellish traffic, the better. Even with an automatic, Bangalore traffic can really eat into your mental reserves and an hour's drive each way to work really used to take it's toll on my productivity in office.

2.Mall and shopping trips:- I have had many situations where i have paid approximately 200 bucks or even more , when i am out to a mall to catch a movie followed by a dinner. The parking cost alone can fetch me another movie ticket in this scenario. As far as parking in a busy commercial district, be it MG Road or Commercial street,I will let your imagination run wild!

Scenarios where TaaS does not make sense:-

1.TaaS will not appeal to the enthusiast at all. Part of the ownership experience of an Automobile is the actual ownership. There are several reports on Team BHP forums on various car rentals whose Cars are in bad shape in less than a year from the purchase date.

2.Family Emergencies:- This is one scenario where it is safer to own a primary car at home. I have witnessed a drastic reduction in Ola/Uber quality (be it the quality of car, or the driver's cleanliness or outright driving). Time is of essence in any emergency and having a private transport can help save those precious minutes waiting for a transport, with no clue as to who will cancel the ride and for what reasons.
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Old 6th March 2019, 13:21   #6
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Default Re: Lyft IPO coming up; says car ownership is in a state of permanent decline

My SCross sees a road only when we need to travel, bare minimum, out of district or state. Otherwise for city use, Ola & Uber takes care. Biggest headache of driving in traffic & parking are taken care.

I personally believe gone are those days when the family arrives in pride in their own car. These days I look with pity at the owner (not chauffeur) when the families arrive in their personal car, frantically look for parking & when they see a spot, that is when the youngest one is still struggling to get down from the car, the Father makes a noise & by the time the younger one gets down that empty parking space is gone!

But yes, when you're out of city mostly in rural, Ola & Uber are still to penetrate & commute reminds us of 1980s.
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Old 6th March 2019, 18:19   #7
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Default Re: Lyft IPO coming up; says car ownership is in a state of permanent decline

Mod Note : Please do NOT post messages that add little or no informational value to the thread. We need your co-operation to maintain the quality of this forum. We advise you to read the Forum Rules before proceeding any further. Request to post ONLY when you have something substantial to add to a discussion.

Last edited by GTO : 9th March 2019 at 08:06.
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