*If you’ve never heard of ride-sharing, app-based taxi services like Uber and Lyft, you probably don’t get out much.
They are pretty much taking over the world.
And John Zimmer, who co-founded Lyft, even goes as far as saying that in five years, most millennials won’t own a car. They will see no need for it.
“You could actually start seeing the majority of millennials in the next five years or so saying there’s no reason I should get a car,” Zimmer told Mashable recently. “The car used to be the symbol of American freedom. Now it’s like …owning a $9,000 ball and chain, because you have $9,000 in expenses on your car every year.”
Sounds like something someone with a ride-sharing business would say.
But apparently there’s data to support his theory.
An article in Huffington Post states millennials are less likely to get driver’s licenses compared to previous generations; and according to the AAA Foundation for Traffic Safety, the number of cars purchased by people aged 18 to 34 fell by almost 30 percent from 2007 to 2011.
Of course this could be for a number of reasons. The economy; parents unable to foot the bill for a monthly car note.
And these days, the Generation Y’ers use skateboards, bikes and public transportation more often as a means of travel. So this could also lend itself to the reasons why they are not purchasing cars.
Yet it is true, as Mashable notes, that this millennial shift has contributed greatly to the success of ride-sharing companies like Lyft and Uber, whose worth is at least $2 billion and $40 billion respectively.
Not to mention the contributions of their parents and grandparents; who rely heavily on the service for their own means of regular transportation.
Yet and still, the jury is still out on whether or not cars will soon be obsolete for the Gen Y set. A survey conducted this year found that 43 percent of millennials are actually likely to purchase a car in the next five years.
“Whatever millennials do right now, it’s highly likely that they’ll drive more as they age into their 30s and 40s,” wrote reporter Emily Badger in an op-ed for The Washington Post last year. “The question is whether they’ll continue to drive less than their parents did at each stage of life — and whether future generations will replicate their patterns.”