5 ways car dealers can benefit from the ridesharing economy

Car dealers in ridesharing

It seems like every day there’s a new article, blog, or news story about autonomous cars, or self-driving vehicles, almost everyday. In truth, it’s going to be a long, long time before every car on the road is a driverless car. Until that happens, if that happens, cars will need human drivers and human drivers will need cars, especially if those humans are driving for Uber and Lyft. Which is exactly why car dealers are sensing a massive financial opportunity speeding down the road. An opportunity that will allow them to convert from car dealerships that only sell cars to car dealerships that rent cars as well, especially to prospective rideshare drivers. Here’s why:

• A recent study shows that 40% of drivers that sign up to be a rideshare driver for Uber and Lyft need a qualifying vehicle in order to start working. And since not everyone wants the cost or hassle of owning a car, they may be looking to rent a qualifying vehicle to drive.
• This is why car dealers are starting to shift how they do business to accommodate the growing demand from rideshare drivers searching for rentable high-quality cars.
• By supplying vehicles to drivers working for Uber and Lyft, dealers can control a huge slice of the rideshare industry pie.

1. Grow and scale business 

Car dealers can easily increase revenues by increasing the ways their vehicle inventory is being utilized.

• A car sitting unused on the lot gathers dust. Instead, it can gather $700-$1000 month when the vehicle is rented out to an Uber driver or Lyft driver. And collecting revenue is a lot better than collecting dust, right?
• Car dealers now have a commercial solution that allows them to rent vehicles to rideshare drivers across the country by simply clicking a few buttons. By visiting HyreCar.com, dealers can list their inventory for rent in 35 states, literally overnight. Using this program, car dealers can easily enter the increasingly popular Mobility as a Service platform, which will be discussed later. HyreCar was the first company to recognize that automobile retailers could be a major player in the world of shared mobility.

2. New mobility means new revenue streams

By embracing and not rejecting the new industry of shared mobility, automotive retailers are diversifying their revenue streams.

• By not adhering to the normal business model of only selling cars (or renting cars for short-term leisure purposes) dealers are increasing profits by reaching out to thousands of prospective rideshare drivers who are in the market for a monthly or a long-term rental. This is a great way to take advantage of the shared mobility economy.
• More and more prospective rideshare drivers are asking “Can you rent a car from a dealership?” And more and more car dealers are making sure that drivers know the answer to that question is a resounding “yes!”

3. The growing popularity of MaaS (Mobility as a Service)

Mobility as a Service is essentially when different forms of on-demand shared mobility transportation services are offered to consumers through a single app. It’s a convenient time-saver for consumers on the go who need the best option to get to their destination as quickly as possible.

• These can be an on-demand shared ride from rideshare companies like Uber or Lyft, as well as carpool vans, carsharing, using public transportation, renting an electric scooter or electric bike, or finding car dealerships that rent cars.
• Maas is growing in popularity, changing the way people think when they consider owning a car as well as the way traditional automobile retailers structure their business.
• Auto dealers and car remarketing companies are learning to not ignore the transition to Mobility as a Service as they don’t want to be left in the dust, much like the taxi industry was when on-demand transportation companies like Uber and Lyft came into play.
• Traditional car dealerships sell vehicles to drivers, and also offer vehicle maintenance services. Incorporating a MaaS model into their structure will utilize their inventory to the fullest degree, instantly creating and increasing revenue. This can be done at no added cost to the dealer or the consumer.

4. Asset tracking tools

As more car dealers embrace MaaS, they need new ways to keep track of and manage the thousands of vehicles that are being rented to drivers. That’s why HyreCar entered a strategic partnership with PassTime.

• PassTime offers car dealers a GPS solution to track and control automotive inventory that is being used for shared mobility. This helps dealers transition into the Mobility as a Service industry.

5. Rent-to-own programs

An increasing number of car dealerships are offering programs that feature rent-to-own vehicles, which can help to put a rideshare driver on the pathway to owning their own car.

• Rent-to-own programs allow drivers to rent a car from the lot and use part of their profits they make driving for Uber or Lyft towards a down payment on their rental.
• Both driver and car dealer experience a win-win in this situation. The driver earns enough cash to own the vehicle they’re using for work, and the dealer makes a sale. KaChing! KaChing!
• Rideshare drivers can contribute a portion of their rideshare income to earn a down payment on the vehicle they’re renting. It’s a fast path to ownership.

Conclusion

If it feels like the world of transportation is changing in the blink of an eye these days, it is. Unlike the taxi industry, which was quickly made nearly obsolete by rideshare companies, car dealerships are jumping on the shared mobility train by offering vehicles for rent to rideshare drivers, along with pathways to owning those vehicles. Mobility as a Service is being embraced by automotive retailers, ensuring them a strong position in the lucrative rideshare economy.