Huge change is coming to Uber? How ride-share giant could switch to a Netflix-like service – and there’s more bad news for the crumbling car industry
- Experts predict that Uber will become a subscription-based service such as Netflix
- Users can pay a fixed amount per month for a number of journeys or kilometers
- The changes are expected to lead to fewer sales of new cars throughout Australia
Uber could undergo a major turmoil in the way passengers pay for travel.
Experts predict that the ride-share giant will switch to a subscription-based service based on Netflix or Spotify models, where users pay a fixed amount for a certain number of trips or kilometers, without lock-in contracts or prepayments.
“Uber will switch from specifically someone asking for a car to someone who subscribes to a mobility service,” said KPMG automotive analyst Steven Bragg 9News.
“It will be pretty disturbing, but there is also a lot of opportunity for many people,” he said.
Mr. Bragg also predicts that every year another 100,000 people will stop buying new cars in favor of rental options.
Ride-share service Uber can be set for a major upheaval in the way passengers pay for travel
Data from the Federal Chamber of Automotive Industries showed that 1,062,826 new cars were sold in the 12 months to 31 December.
This was the lowest total in eight years.
While only 71,731 new cars were purchased in January 2020, sales in Australia were wide, 10,000 fewer than January 2019 or a 12.5 percent decrease.
A combination of rising costs such as tolls and registration costs is pushing more people in the direction of healthcare rental.
A combination of rising costs such as tolls and registration costs are pushing more people towards healthcare rental services (stock image)
The sector is flooded with new options outside of GoGet, which allow people to rent cars for a period of a few hours to several days.
Newer services such as FlexiGo, Carbar and Carly with which customers can choose a specific type of car to rent over a longer period.
Jeremy Lawrence, resident of Melbourne, signed up for car rental ten years ago and has become a regular user.
He said he doesn’t always need the car, but occasionally needs it for birthday parties or moving furniture.
Mr. Lawrence told 9news that the use of a rental service reduces costs.
“I can choose which car I want and I don’t have to worry about maintenance,” Lawrence said.
The current payment model is predicted to change into a subscription-based service, where users pay a fixed amount for a certain number of trips or kilometers