While entrepreneurs look for new niches every day, we forget the main economic rule that idle assets must work. Let us consider how, at first glance, the automotive industry has been operating so far.

The automaker sells cars through the dealership network, for example, the customer buys a 15,000 $US car. The dealer gets 10% for sale plus the future car repair and service revenue. The car manufacturers remain with 13,500 $US. The car buyer's account has decreased by 15,000 $US. If you drive 10,000 km per year, then, excluding operation and residual value at which you will sell the car in 5 years thereafter (for example, at 5000 $US), your 1 km cost will be 0.20 $US.

As we know, the average consumer uses the car max. 10% of time, i.e. 90% of the time the car is parked near the house.

Keep in mind that today’s car sharing market price is an average 0.40$US per km without fuel and maintenance those one car maximum payoff is 200.000 $US.  

No matter how many kilometers you make a year, the point is that for 90% of the time the car is not used, i.e. the car manufacturer and the dealer have done their job, sold you the product, and then it becomes your problem.

Now let us consider the same situation from a different point of view, and see whether that 90% can be converted into cash that works for you, and how it could be divided through the car’s lifespan.

Imagine that instead of selling cars in a traditional way, the car manufacturer gives all those cars, for example, 1000 of them, in some city, to consumers to use on demand, i.e. he would put these cars into the car-sharing platform. In terms of cash flow the car manufacturer would not suffer because when selling, he gets money for all 1000 units throughout the year, and in the sharing option, he would get part of this amount every day. Dealers, in turn, would get their share for the car servicing, cleaning, etc.

Let's calculate the money if the car is operated 100% of the time instead of 10%.

For example, the car manufacturer sets the price of 0.10 $US per km (twice cheaper than the consumer is paying now). The car will drive 10 times more per year, i.e. 100,000 km. 

The car manufacturer's income accounts to 50,000 $US per five years, i.e. 3 times more, net of services and maintenance.

Yes, a lot of nuances are not considered here, but it is still very obvious that changing the system and using the unused assets reduces the final cost twice to consumers, and triples the manufacturer’s income.

Keep in mind that today’s car sharing market price is an average 0.40$US per km without fuel and maintenance those one car maximum payoff is 200.000 $US.