US Car Sharing Market

U.S. Car Sharing Market Size

The U.S. car sharing market size was valued at USD 3.1 billion in 2024 and is estimated to register a CAGR of 4.8% between 2025 and 2034, owing to increasing urbanization as well as traffic congestion in major U.S. cities. As the population migrates from rural to urban regions, there exists a high requirement for inexpensive and adaptive means of transport.

The vehicle sharing model has been proven effective because it enables users to have access to a vehicle without the need of owning one which brings many benefits associated with the use of the car without the expenses. In addition to that, the use of easy smartphone reservations and instant booking further makes the services appealing to young urban users who tend to be more cost sensitive.

For example, in 2023, the Census Bureau’s Establishment Statistics Program indicates that Southern counties accounted for the largest population gains. The younger demographic age group was identified as the main driver behind this trend as 66% (1,876) of us counties had population gains in 2022-2023 when compared to 52% 1659 counties in 2021. Overall, there were changes in population across all three thousand one hundred 44 counties on average at 29% while in the previous year it was 17%. This shift in demographics supports adoption in the use of mobility-sharing services.

As more government incentives and support for shared mobility initiatives are anticipated, the U.S. car-sharing market is expected to increase immensely. The federal, state, and local governments are now providing more fiscal and regulatory incentives to accelerate the development of environmentally friendly modes of transportation. These initiatives aim to mitigate traffic issues, decrease carbon emission levels, and stimulate the adoption of different mobility alternatives.

Some cities are providing tax credits, grants, and subsidies for car-sharing companies that are expanding their fleets and incorporating electric vehicles or low-emission vehicles. Moreover, a few cities are providing special parking spaces with lower access costs for car-sharing services. This makes it easier for the users of the service.

U.S. Car Sharing Market Trends

The inclusion of smart technology within vehicles, such as GPS, remote unlocking, and diagnostics, has improved the effectiveness and convenience of the car-sharing industry. Such innovations allow users to search, book and use vehicles with a mobile application making self-service more customer centric. So too, the growth of autonomous vehicles (AVs) is likely to impact on the vehicle sharing economy by eliminating a human driver and lowering expenses.

The proliferation of self-driving vehicles will allow car sharing companies to offer a myriad of on-demand services with faster response times and increased safety. All in all, these technological advancements make car sharing more cost effective and attractive to more users and therefore spurring the growth of the market.

Probably one of the most serious shortcomings facing the U.S. car-sharing market is that managing a fleet comes with high operational and maintenance costs. Car sharing is an innovative and convenient service with many advantages over owning a vehicle; however, having a big fleet of cars stationed at different places is expensive. These expenses consist of maintenance, cleaning, insurance, and fleet management systems that add up to the overhead costs for car-sharing services.

In addition, a fleet of car-sharing vehicles is subjected to high usage, which can accelerate wear and tear, accidents, and maintenance needs. Many insurance companies do not offer coverage for electric cars because of the high premiums, so that's another significant cost to the fleet. Contributing to all these factors is the usually small profit margins within the industry, and all this can make car-sharing companies unprofitable.

U.S. Car Sharing Market Analysis

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• Based on car, the market is divided into economy, executive, and luxury. In 2024, the economy segment held a U.S. car sharing market share of over 55% and is expected to cross USD 2 billion by 2034.  The
  growth of economy cars is propelled by the unmet need for inexpensive and affordable means of transport. As now people are becoming more budget-oriented, these lower-cost mobility options are gaining more traction.
  
• Affordability is a key factor and for those people looking for transportation solutions, economy cars provide an effective option, especially for those who are not ready to invest in a car.
  
• In addition, the increase in environmental consciousness has caused many people to prefer smaller cars, which are inexpensive to fuel and, therefore, have a lower overall cost of ownership.

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• According to the application, the classification on the U.S. car sharing market can best fit as business and private. The share of the private segment in the market was Finished in nearly 69% in 2024. The global increase in smartphone penetration is benefiting the growth of the private segment. It is much easier to use an application to summon a car than it is to get a taxi, and the audience extends from small cars to the very expensive ones.
  
• Hence, it is appealing to the consumer. This private segment continues to expand as more cost-effective and flexible means of transport are sought after. These private cars are not used for personal use, and as more people become aware of the need to protect the environment, it is less preferred. Private car sharing is also becoming popular among people who wish to reduce ownership stigma.

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• California dominated the U.S. car sharing market with a major share of over 20% in 2024 and the California leads the market in the region. The growth of car-sharing services in California is mainly due to the growth of users in the state due to the high focus of the users on reducing waste and emissions. The contributing factors policy tends to favor growth for car-sharing services, especially for those with an electric and low-emission vehicle.
  
• In response to consumer preferences for green transport, companies are now adopting EVs in their fleets. Likewise, California has bolstered the popularity of EV-centric car-sharing services with its public infrastructure, consisting of a wide array of charging stations and other electric vehicle subsidies.
  
• U.S. car sharing market growth will be positively influenced by the increasing need for personalized, instant car services as work preferences and lifestyles shift in New York. More remote working and freelancing jobs are making people shift towards flexible forms of mobility as opposed to owning a motor vehicle.
  
• Particularly, younger generations of New Yorkers use on-demand transportation because of the ease of access and affordability. Car-sharing enables people to use a car as needed without the financial burden of owning and sustaining a personal vehicle. Furthermore, the growth in car-sharing is also boosted by the wide availability of mobile apps used to book and gain access to vehicles, allowing for ease of use.
  

U.S. Car Sharing Market Share

• Zipcar and Enterprise CarShare hold a market share of over 30% in the U.S. Car Sharing industry. Zipcar specializes in meeting consumer needs with a broad and varied fleet of cars and an easy-to-use mobile app for on-the-go travelers, ensuring notable ease and convenience while maintaining a focus on flexibility.
  
• It focuses on metropolitan cities and college students where personal car ownership is not realistic. The company provides compact cars and even trucks, which helps Zipcar cater to a wider audience, an inclusionary mechanism in effectively reaching out to more clients. Also, with the ever-increasing concern toward consumer protection, it has become important for Zipcar to take initiative and demonstrate that they value sustainability by adding electric cars into their fleet.
  
• Enterprise CarShare caters to the needs of individuals and businesses alike, enabling them to rent vehicles for longer periods or for short, flexible durations. Its primary goal is to capitalize on its parent company, Enterprise's, vast number of locations so that cars can be accessed conveniently by users all across the country. Furthermore, the company has implemented loyalty programs that benefit enterprise customers with charges below the normal rates and with greater interaction with other Enterprise services.
  

U.S. Car Sharing Market Companies

Major players operating in the U.S. car sharing industry include:

• Avail
• BlueLA
• Enterprise CarShare
• ENVOY
• Free2Move
• Getaround
• Gig Car Share
• Modo
• Turo
• Zipcar
  

The growth of the U.S. car sharing market is evidence that consumers are gravitating toward convenience, flexibility and cost reduction for transportation. Market participants are now customizing their platforms to smoothen the user experience, mainly by creating mobile applications that allow users to book, unlock and gain access to vehicles whenever they want.

To keep up with competition, participants have diversified their offering of vehicles to now include traditional cars, electric vehicles (EVs), hybrids and many more as the demand for ‘green’ vehicles rises. Numerous car sharing services are also venturing into new categories, including but not limited to, luxury, SUV or EV car sharing services.

U.S. Car Sharing Industry News

• In December 2023, Zipcar launched an electric-vehicle car sharing service in 10 U.S. cities. The company is partnering with cities, university campuses and commercial and residential businesses nationwide. It leverages its proprietary tools to monitor the EV fleet to optimize charging while meeting turn-around for member demand.
  

• In September 2023, Turo partnered with Hopper to make its 350,000 active vehicles available for booking on the online travel agency's app. Partnering with Hopper assists Turo to expand its reach and makes booking the perfect car for any type of trip.
  

The U.S. car sharing market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) and Fleet Size from 2021 to 2034, for the following segments:

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Market, By Product

• Hatchback
• Sedan
• SUV
• Others

Market, By Fuel

• Gasoline
• Diesel
• All-electric
• PHEV
• HEV

Market, By Car

• Economy
• Executive
• Luxury

Market, By Application

• Business
• Private

Market, By Business Model

• Round-trip
• One way

Market, By Model

• P2P
• Station-based
• Free floating

The above information is provided for the following regions and countries:

• Arizona
• California
• Colorado
• Florida
• Georgia
• Illinois
• Indiana
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Missouri
• Nevada
• New Jersey
• New York
• North Carolina
• Ohio
• Oregon
• Pennsylvania
• Tennessee
• Texas
• Utah
• Virginia
• Washington
• Wisconsin