Car-Sharing Mobility Services Need Greater Focus on User Experiences: ZipCar, Car2Go & BMW DriveNow

Automaker investment and engagement with so-called “new mobility” services is on the rise, as more organizations view the endeavors as data-gathering exercises for a possible future without car ownership. However, the user experience of these new services is often an afterthought, particularly for car-sharing services. A new report from the In-vehicle UX (IVX) group at Strategy Analytics, “Most Consumers Satisfied with Mobility Services, but Not All Models are Winners” surveying current and former mobility service users in the US, Western Europe, and China, has found that despite some tempered enthusiasm among car owners in Europe, consumer satisfaction is strong and wide-ranging. In particular, satisfaction with ride-hailing was especially strong in China.

“For any service that wishes to improve their perception among users, we urge a greater focus on UX-centric factors important to travelers, particularly the usability of the service itself via the app, the on-board experience, or the availability model, ”said Derek Viita, Senior Analyst and report author.

“With upcoming expansions and mergers, services that deprioritize or ignore key UX-centric factors affecting transport choice will likely struggle,” said Chris Schreiner, Director, Syndicated Research UXIP.

Key report findings include:

    • In contrast to consumers in the US and China, no “new mobility” offering stood out in Western Europe. Enthusiasm for these services remains more muted in Western Europe than elsewhere, particularly among vehicle owners.
    • Current and former LeShare users in China are far more likely to recommend this service to others compared to similar services. Though a majority of EVCard users are likely to promote the service in China, without changes to the UX, their relatively large segment of critics will hold them back.
    • For those who already own a vehicle, there is a clear hierarchy among car-sharing services in the US: the free-floating model of Car2Go appears to be winning the space, as Zipcar stays a close second due to limitations with its app and station-based service model. BMW’s ReachNow service appears to be losing out, likely due to its long-lingering app performance issues.
    • However, this car-sharing hierarchy appears to be reversed in Europe, where BMW-based DriveNow holds an edge over Car2Go. As Daimler and BMW merge their mobility services, each provider must leverage lessons learnt in all ventures and regions to improve the UX of all future offerings.

The BMW Group and Daimler AG are joining forces to offer customers a single source for sustainable urban mobility services. The two companies today signed an agreement to merge their mobility services business units. Subject to examination and approval by the responsible competition authorities, the BMW Group and Daimler AG plan to combine and strategically expand their existing on-demand mobility offering in the areas of CarSharing, Ride-Hailing, Parking, Charging and Multimodality.

Each company will hold a 50-percent stake in a joint-venture model comprising both companies’ mobility services. The two companies will remain competitors in their respective core businesses.

The goal of this transaction is to become a leading provider of innovative mobility services. Both automotive manufacturers aim to shape the mobility of the future to be able to offer their customers unique experiences and support their partners, such as cities and communes, in achieving sustainable urban mobility.

The partners intend to offer their customers a holistic ecosystem of intelligent, seamlessly connected mobility services, available at the tap of a finger. Together, the BMW Group and Daimler AG plan to grow this new business model sustainably and enable rapid global scaling of services. Working as partners, both companies are thereby addressing the challenges arising from urban mobility and changing customer wishes, and cooperating with cities, municipalities and other interest groups to improve quality of life in major cities.