In Southeast Asia (SEA), consumer preference for vehicle ownership is gradually declining, particularly in countries where parking and congestion fees strain people’s budgets. In contrast, car sharing provides a hassle-free mobility solution that can significantly reduce consumers’ living costs. Car sharing platforms are available in various business models, such as round-trip, free-floating, and peer-to-peer (P2P).
The round-trip car sharing business model will experience significant growth in SEA. With this model, users pick up and drop off the vehicle at the same location. This approach helps car sharing operators reduce fleet operational costs, such as fuel and personnel, and provide a competitive price to their customers.
The free-floating business model is seeing rapid growth in competitive landscapes such as Singapore and Malaysia. The business model offers great flexibility by enabling users to pick up and drop the vehicle at any location within set boundaries. For free-floating service providers, Frost & Sullivan's research indicates that adopting an Internet of Things (IoT) fleet management system can empower them to reduce overall operating costs and provide competitive prices in the market.
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