Did the internet kill the automobile? Not exactly.
But it did produce a new consumer group that values car ‘usership’ over ownership, prefers bike wheels to steering wheels, and expects seamless transportation options akin to mobile connectivity.
- As the most well-traveled and active demographic to date, millennials are driving a new generation where exploration and adventure are lifestyle priorities. What they aren’t driving are cars, as evidenced by global declines in car sales, particularly in the US
- Millennials prefer the digital highway over the physical one as research suggests a direct correlation between the rise in internet usage and the decline of car sales
- On-demand car-sharing services highlight the consumer demand for car ‘usership’, not ownership. What better proof than Uber’s $50 billion valuation? According to Zipcar, 40% of members have given up ownership of their personal vehicles in the past year
- Hoping to fight fire with fire, auto manufacturers (BMW, Toyota, Daimler) are starting to embrace car-sharing programs. Ford’s new Peer-2-Peer Car-Sharing program looks to be a game changer for the industry
- Whether biking, skating or using personal mobility units (sorry, no hoverboards yet), millennials still use wheels to get around and the biking commuter boom is going full speed ahead
Freedom vs. Burden
of millennials in the next five years or so saying there’s no reason I should get a car. The car used to be the symbol of American freedom. Now it’s like…a car is like owning a $9,000 ball and chain, because you have $9,000 in expenses on your car every year.”
21st Century Fast Lane
For the majority of millennials and Generation Z, the digital highway has replaced the physical one. A study by University of Michigan Transportation Research Institute (UMTRI) found that having a higher proportion of internet users is associated with lower licensing rates among young people.
As people’s lives revolve around online connectivity (texting, shopping, updating a multitude of social-media platforms), driving a car is now a deterrent, a dated piece of machinery that stops you from being connected. As cell phone use while driving is increasingly banned, millennials seek alternative forms of transportation. When they do drive, they look to ‘usership’, not ownership.
Whether biking, skating or using personal mobility units, millennials still use wheels to get around. The first contributing factor to the lifestyle shift is economic. High unemployment rates and job uncertainty make automobiles an unwanted expense (monthly car payments, insurance, parking fees) that millennials either can’t afford or are not willing to take on. In the US, commuting costs are growing annually; according to a recent Citi survey, 60% of respondents said their commuting costs have increased yearly ($2,600 is the yearly average). The majority of Millennials would rather apportion car and commuting costs to lifestyle activities and outdoor adventures.
Two additional factors driving the cultural sea change are sustainability (eco-activism is a key priority for millennials) and healthier lifestyle choices.
Biking is seeing significant global growth as both a social activity and a form of transportation. American bike commuters have increased 60% since 2000. In 10 years the number of central London residents cycling to work increased by 144% and outer-London saw an increase of 45%, and in Japan ‘tsukinists’ (bicycle commuters) continue to rise despite government bans on biking to work.
Reinventing the Wheels
Multi functional units such as the ILY-A and Whill offer various mobility options (scooter, bike, walker) in one
Honda’s UNI-CUB, a lightweight, eco-friendly robotic seat was developed as “the first personal mobility device which creates harmony with people.” While harmonious success has yet to be proven, the device is getting inquiries from large corporations as a means of transportation between large corporate campuses and warehouses.