A recent study by IHS Markit predicts that by 2040 sales of vehicles to private owners will fall nearly 20% annually in the US, Europe, China, and India. But the vehicle miles traveled per year in those areas will go up 65% to 11 billion miles per year in the same time period.
IHS Markit added that this is due to ride-sharing services’ expected purchase of more than 10 million vehicles in the US, Europe, China, and India over the next two decades as the companies move away from human drivers. This contracts with 300,000 vehicles ride-sharing services are expected to purchase in 2017.
The recent Uber-Volvo deal signals a huge shift in the auto industry from individual car buying by consumers to large fleet purchasing by ride-sharing services like Uber and Lyft, IHS Markit said.
This means that car companies could increasingly become suppliers for ride-sharing services, and move from being consumer brands to a commodity product. And some car companies as we know them could cease to exist.
