Peer 2 Peer Car Sharing – New form of Car Pooling

Peer 2 Peer car sharing is a new form of car pooling in which the owners lend their cars to other users when it is not in use. this form of business model has recently caught the attention and benefits both the users who do not own any car and the owners. Owners  get paid and rates vary according to the amount of time they lend their cars. Also this program appeal the owners to recover the maintenance cost of their vehicle through renting out their vehicles.. Many people who do not own or use cars on regular basis and Peer 2 peer car sharing can help such people to use cars only when required without the need to own and maintain a car. The web based platforms and mobile applications have made it easy to find vehicles and owners nearby their location, making this program highly attractive.

How the Model works.
Peer 2 Peer car sharing is different from conventional car sharing programs. In a typical car sharing programs, companies maintain a fleet of cars that are available on rent basis. In peer to peer car sharing programs company does not maintain their own fleet of cars, instead, several owners participate and offer their vehicle on rent. The Company setup an online interface for car owners and the renters. The renters can access and get information of the vehicles available nearby their location by accessing an online database through website or mobile app. The owners usually have liberty to set the rate for renting out their cars. They can choose from either fixed rate or on hourly basis.

Peer 2 Peer car sharing is often categorized as a descendant of carpooling. Carpooling is sharing of a single car by more than one occupants to cut fuel cost and pollution. However, the biggest disadvantage of car pooling is that the car is driven by the owner most of the time and others only take a ride to reach close to their destinations. Setting up a meeting time and point is painful sometimes and dependant on each individual that share the ride. The peer 2 peer car sharing option eliminates the inflexibility and timing clashes by allowing the users to make of the vehicles even when the owner is not around. Usually peer 2 peer car sharing services install a device into the participating vehicles which controls the vehicle locking and ignition system. The renter uses his smartphone or a smart card (usually provided by the company) to unlock the vehicle and drive it for the time needed. Such sharing schemes  alleviates the need to meet the owner, bargain the rates and exchange keys. The online database lists the vehicle along with the rates. The cars are stamped with the company sticker to help the renters identify the vehicle.

Advantage of  Peer 2 Peer Car Sharing schemes

1.Reduction in Traffic Congestion
The car sharing scheme is considered an environment friendly practice. By sharing a single or fleet of cars among users helps in reducing the traffic congestion. Presence of fewer cars on the road will translate into less time required to reach the destination during rush hours.

2.Reduced Carbon Footprint
Car sharing scheme is also helpful in reducing the carbon footprint. More users can share a single car that will bring fewer vehicles on the road. Fuel will be less burnt and also it will help in controlling the emission of harmful gases to the environment. Overall, it will help a long in overcoming the environmental pollution and reducing the carbon footprint. More and more companies are leaning towards building a fleet of hybrids and electric powered vehicles. Usually, the average distance travelled by the renters is well with the range that the on board batteries cover. In case of hybrid, the engine will remain shut for short duration trips, thus eliminating the need for fuelling the car.

3.Reduced Cost of Ownership
This is one of the most important incentive for the users to opt for car sharing schemes instead of buying their own vehicle. A car owner has many liabilities such insurance, car payments, maintenance, parking charges and mortgage. Through car sharing schemes, renters do not incur ownership cost for any of these things. All he has to pay  for the amount of time he drives the car. Many companies instead of maintaining their own fleet, invite car owners to join and build a virtual fleet of cars. The owners then get paid for the time they lent their cars to the renters. By participating in such programs, they not only make money but also can recover the cost of their vehicles.

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