MILLENNIALS DON’ T WAN T TO OWN CARS
According to Goldman Sachs Global Investment
Research, millennials are reluctant to own vehicles.
Instead, they prefer services that give them access to the
goods without the burden of ownership. Automobiles
are the second-most valuable assets of families, yet they
remain idle 95 percent of the time. In addition, the number of licensed drivers between ages 16 and 44 has been
declining since 1983, according to research from the
University of Michigan Transportation Research Institute.
Accordingly, ride-hailing services such as Uber, Lyft
and DiDi are experiencing signi;cant growth. Globally,
the car-sharing market is expected to grow by 20 percent
annually and surpass $11 billion by 2024, according to
Global Market Insights.
All major carmakers are proposing new business
models to tap into the ride-hailing market. BMW Drive
Now and General Motors Maven are two operational
examples. Carmakers also are betting that near-future
automobiles will be fully autonomous. Tech companies
such as Google and Apple see opportunities in the value
or forecourts to remain relevant in any future
scenario, the fueling industry must focus on custom-
ers and their behaviors while the industry improves
business ef;ciency. Manufacturers, distributors, station
owners and builders must work together to envision and
achieve forecourts that draw tomorrow’s consumers.
Step out of 2018 and imagine today is 2028. Are
there still cars? Are people still traveling, or, for those
who have read the science ;ction gamer novel “Ready
Player One” by Ernest Cline, is everything based on
virtual reality headsets? Are cars autonomous? Are those
cars powered by electricity or gasoline? Are people still
Come back to 2018, and trends are starting to
emerge, gain traction and become a de facto reality.
Excluding what risk expert Nassim Taleb would call
“black swans,” or extremely unlikely events that change
the course of history, a few of these trends will affect the
downstream industry signi;cantly.
Shields, Harper & Co.
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