Over the past five years, the Car Sharing Providers industry has grown rapidly. According to IBISWorld industry analyst Ryan Lin, “this has been partly due to the continual climb of world crude oil prices and the demand for cost-efficient and convenient inner-city transport”. The industry has also greatly benefited from advancements in mobile technology and the internet. This has resulted in strong dependency by industry operators on online bookings and car tracking. Over the five years through 2013-14, industry revenue is expected to grow at an annualised 25.0%. In 2013-14, revenue is forecast to grow by 18.7% as consumers continue to be pressured by high petrol prices, congested inner-city traffic and substantial vehicle upkeep costs.
Despite its stellar performance over the past five years, the local Car Sharing Providers industry is different to its European or American counterparts. Unlike other developed economies, Australia is a geographically dispersed nation, with the majority of the population located across a handful of cities along the coast. “This has made it difficult for providers to build a diverse network of cars, but has given an opportunity for new companies to enter the industry,” says Lin. As a result, there are a number of significant industry players such as Carshare Australia Pty Ltd, Hertz Investment (Holdings) Pty Limited and Greensharecar. However, there are no major players with a national presence, with industry operators preferring to focus on high population density cities.
In the coming five-year period, the industry is expected to continue its rapid growth. With petrol prices and congestion remaining pressing issues, consumers are expected to looks towards cheaper and more efficient forms of transport. The number of available cars will increase, so more consumers will be exposed to the industry and will have access to car share vehicles. As a result, industry revenue is forecast to grow.