Singapore – A new report by Avis Budget Group, a leading global provider of mobility solutions, revealed that while the car’s popularity will stay strong in the upcoming mobility shift, attitudes towards car ownership will change significantly. More than two thirds (63%) of residents in Singapore surveyed think that owning a car is important and more than half (51%) still see the car as the ideal mode of transport. However, 73% surveyed said that they would consider giving up car ownership and rely on long term car rental if it was convenient and easy for them, ranking second among all the countries surveyed.
The report, titled The Road Ahead: The Future of Mobility, examined the way in which the mobility landscape is changing around the world, how it is likely to look in the future and, how people in different countries view these changes.
In the research, conducted across 16 countries in Europe and Asia, including Singapore, respondents revealed that over the next decade, consumers are likely to move to an access-driven and on-demand model as their favourite mode of transportation.
The single biggest factor leading the transport revolution is technology, specifically 5G networks. Most recently, the Singapore Government has shown strong support and announced plans to roll out 5G coverage across half of Singapore by end-2022. The large amounts of data provided by the 5G networks will enable mobility companies to collect and mine data for insight, which can be used to improve travel experiences. To this point, Avis Budget Group’s research revealed that more than two thirds (65%) of respondents feel comfortable having their data accessed and shared for the implementation of smart infrastructure and better travel experience.
Additionally, 68% of respondents shared that they take two or more modes of transport, or multi-modal journey, for their “typical everyday journeys”. Data technology also make complicated multi-modal journey planning much easier where previously the planning would have been a real challenge.
Keith Rankin, President, International, Avis Budget Group, said: “Driven by technology advancements and the influence of services like Amazon, Netflix and Spotify, people today want to consume and access products and services at the click of a button. The expectation for an on-demand service has impacted the mobility industry and resulted in the evolution we’re seeing today - from being able to book a taxi instantly to hiring a car for a week-long holiday, all from your smartphone. However, our report reveals that we are now seeing a rise in this demand for instant access and flexibility, resulting in changing behaviours towards car ownership.
“Changing needs and the expansion of the sharing economy offer both challenges and opportunities for the mobility industry. Our research has shown that whilst consumers are expectant of connected, integrated and on-demand services, they still want convenience at a reasonable price.
“It’s imperative that different mobility players work together to ensure the future needs of consumers are met. We have demonstrated the success of collaboration, as shown with our fleet management as a service (FMaaS) partnerships with Via and Lyft, and our agreements with Ford and Continental in providing connected cars. Our partnerships demonstrate well how the sector can work together to provide the on-demand and connected services that customers want. These can range from a technology giant delivering 5G, or local governments working with the private sector for improved, urban electric vehicle (EV) access for residents.”
The Avis Budget Group Road Ahead: The Future of Mobility Report examined the current and near future mobility landscape across markets in Europe and Asia.