BANK OF AMERICA: We've reached 'peak car'
The transportation sector in particular has $608 billion worth of market share ripe for disruption from the rapidly-evolving sharing economy, the bank said in a report.
"We are reaching "peak car" in many developed markets," Bank of America said. "Transportation is costly and inefficient, making the sector ripe for disruption."
On average, cars sit idle 95% of the time. That's huge for a country with 112 million registered vehicles. Freeing up those dormant cars to be a part of the economy will take more than just Uber.
Specifically, the bank points to four other specific areas that will add to the disruption:
- Ride-sharing, like UberPOOL or Zimride.
- Car sharing and private organizations, like Zipcar and car2go.
- Peer-to-peer sharing, like Getaround and drivy.
- Bike sharing, like New York's Citi Bike.
Cycling may seem unrelated to vehicle commuting, but 40% of car trips are less than two miles (a roughly 20 minute bike ride). Bikes can also bridge the "final mile" gap between mass transit and a worker's home or office.
Of course, entrenched enterprises aren't going to go without a fight. Jaguar Land Rover has invested $25 million in Lyft and GM dropped $581 million on a self-driving startup, just to name a few.
"Auto manufacturers and tech companies have been some of the largest investors and movers on ride-hailing," writes Bank of America. "For some actors, this is a financial hedge against the disruptive potential of mobility services. For others, it strategically leverages their area of expertise."