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If Younger Consumers Aren’t Buying Cars, How Are They Getting Around?

(Joseph Gottlieb, CTO, Thursday, April 9, 2020)

As was noted in Rick’s blog from Tuesday (April 7th), younger drivers are finding it less necessary to own their own vehicle. As noted in a recent Cox Automotive study, 55% of Gen-Z people in the US feel that owning a vehicle is not a necessity. In fact, a study by Allison+Partners revealed that 70% of Gen-Z consumers do not have a driver’s license (unthinkable when I was that age 😊!). So if this is the case, how are those 70% of Gen-Z people (not to mention Millennials, where nearly 45% do not believe that they need to own a vehicle) getting around? For many in this generation, there are many alternatives to vehicle ownership. These include ridesharing, electric scooter sharing, and public transit.

According to a study by Frost in Sullivan that was published in Forbes, there are several characteristics that define Gen-Z consumers buying habits, especially when it comes to mobility:

  • They value accessibility of transportation over ownership of transportation. In large cities where parking is expensive (if available at all), it is easy to see why this is important.
  • Parallel to this is a reduced interest in the “excitement of driving”, and more interest in the lower stress experience of being driven, whether in ridesharing or by autonomous vehicles. This is further amplified by the fact that Gen-Z consumers see cars more like appliances than an aspiration.
  • Gen-Z consumers also tend to be more fiscally conservative than their predecessors, which makes vehicle ownership less attractive.

For a company like Rhombus, this is very good news from a number of perspectives. Ridesharing vehicles are highly likely to shift to electric vehicles (EVs) over time, and autonomous vehicles are almost certain to be EVs. Likewise, public transit vehicles are also one of the early adopters of electric vehicles. Rhombus is an expert in high-power charging systems for fleet EVs, especially where vehicle-to-grid (V2G) charging is required. Our VectorStat® hardware and software allows fleet customers to gather data from all of their infrastructure  nodes, regardless of connectivity or network issues, to effectively manage their energy resources. VectorStat’s applet-based open architecture also enables the easy integration of new features and functionality, whether to support new hardware or to provide cutting-edge data analytics capabilities. Find out how we can help you by contacting us at sales@rhombusenergy.com.

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