Page 19 - drive a2b march 2020 web

Users could pay a set
amount per month for
a number of rides or
kilometres

Uber could be set to carry out a major shakeup in the way passengers pay for travel.
Experts predict the ride-share giant will switch to a subscription-based service based on
Netflix or Spotify models, where users pay a set amount for a certain number of rides or
kilometres, with no lock-in contracts or up-front payments.

"Uber will switch from specifically having A combination of rising costs like road-tolls
someone who calls for a car, to someone who and registration fees are pushing more people
subscribes to a service of mobility," KPMG towards car rental services.
automotive analyst Steven Bragg said.
The industry is becoming flooded with new
"It's going to be quite disruptive, but there's options outside of GoGet, which allows people
also a lot of opportunity for a lot of people," he to rent cars for periods of time ranging from a
said. few hours to several days.
Mr Bragg also While newer services like FlexiGo, Carbar
The changes predicts an and Carly which allow customers to choose a
are forecast additional specific type of car to rent over a longer period
to result in 100,000 people of time.
every year will
fewer new car stop purchasing Melbourne resident Jeremy Lawrence signed
sales across new cars in up for a car-rental service ten years ago and has
become a regular user.
Australia favour of rental
options. He said he has no need for the car at all hours,
but may need it on occasion for birthday parties
Data from the Federal Chamber of Automotive
Industries revealed 1,062,826 new cars were or moving furniture.
sold in the 12 months to December 31, 2019. Mr Lawrence said "I can pick and choose which
car I want and I don't have to worry about
This was the lowest total in eight years.
maintenance".
Only 71,731 new cars were bought Australia-
wide in January 2020 - 10,000 less than January
2019 - a drop of 12.5 per cent.

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