Michelle, Detroit, Bloomberg discussed on Bloomberg Markets
The source has Elon Musk is hard. Morgan Stanley to assist, him in his potential bit. Take tesla private musk Shocked the financial world earlier this month when CEO tweeted that he wanted to take the electric car maker private and had quote funding secured tesla shares. Down now by about one tenth of one percent. Tenure yield two point eight one percent gold is down seven tenths, of one percent west Texas intermediate crude right now sixty seven eighty. Five for a barrel of TI, recapping equities mix the s&p down to down about one tenth of. One percent I'm Charlie pelletan DAT is Bloomberg business flash thanks charleen you're listening to Bloomberg. Markets on, Bloomberg radio Hitching a ride is one all turn it into owning a car but we're going to go a little bit deeper and figure. Out how people are in fact shifting their, driving habits away from car, ownership and. To help us understand this Michelle crabs she's, executive analyst, at auto trader dot com joining us on the phone from Detroit Michelle, great to be with you so this is a pretty significant trend and you're. Seeing it. Happen right there in front of. You and. The implications of it tells what's going on Right so Cox automotive which is the, parent, company of auto trader and. Kelley blue book recently did a study we did a mobility study that looks at autonomous vehicles and alternative ownership because the two go hand in hand I mean what we found is private ownership Dominates the automotive landscape but new options like ride hailing and subscription programs. Are becoming. More popular with the particularly young, urban dwellers and when you talk about subscriptions you're. Talking. About zipcar. And those types of services right not really we're, talking about subscription services are things like you you pay a monthly. Fee and you get access to a car. You may be able, to, trade out cars there are a BMW Porsche. Mercedes. Are. All starting, to put their right okay sorry Interesting so you you pay a subscription fee and. You can see the good, thing about it is you unlike, a lease you can cancel it and you can swap out different cars, you wanna convertible for the weekend you can do. That and get a utility the next week and so that's very attractive to people and Michelle. I wonder how much of this study that you looked at for, two thousand eighteen is really dependent upon geography and demographics you know we keep hearing that millennials want to, be an urban areas they don't want a car but then on. The other, hand I do hear that as people, grow up, and start to form, families they're going out into more of these suburban areas how much of that is a factor while we're. Actually and that is where it, all started we did see in our last study. A. Couple of. Years ago it was much more focused on young, and urban dwellers who were who were more open to these ideas. But we're seeing it across the spectrum of. Age groups and regions, I, mean we're even seeing Lubar in rural areas. For. Example So it is gaining. Traction it is concentrated with young urban dwellers more because there. Are disadvantages particularly in cities for owning. A vehicle, but the other thing affordability is become the big issue you know the cost of vehicles has gone way up and people. Tell us, they need mobility more than ever but they don't necessarily feel. They need to own a, vehicle and when you see the, sort of broader shift to electric vehicles and whatnot does that shift maybe, people's interest in owning a car or is this. A secular change in the way that people feel about a car in their life as as. An ongoing or a permanent investment well I think that that the, second is to to some extent but what we are seeing as these alternative ownership models are going to, lay the groundwork for one we have autonomous vehicles because certainly autonomous. Vehicles will, be will have them available in a. Different way Way than personal ownership Jason is you mentioned in your intro Michelle is in Detroit she's witnessing this all firsthand Michelle I? Ask, you Howard the company's reacting does this mean that they have. To bring the cost of a lease down to even get people in the door well the automakers, are also rethinking their business models and they are looking at it for example I mentioned Porsche Mercedes BMW are offering subscription services General Motors has. Made in which is their umbrella for all kinds? Of, new, mobility services, so they are definitely they know, if they want a business in. The future they have to change their business models as, well to accommodate consumers and you've talked, a lot, about some of the subscription services as. Well I wonder how much do Uber left and some of the models that we don't even know yet how much does, that have, an impact on this well certainly you know when we look at ride hailing but that. Has really become mainstream and if you look at the when. You ask consumers who are the leaders, and ride hailing they. Say older and less to. By. And large there's hardly, anybody else that, compares so that we are seeing a tremendous amount of growth in that we were surprised at you know even urban? Rural, areas in the last two years have the usage has gone way up so. That's all, it's getting towards, ubiqu- Notice regard Michelle Krebs executive, analysts auto, trader dot com joining us on the. Phone from Detroit the report from Cox automotive is called evolution of mobility say alternative ownership very interesting thanks for being with, us Taylor, there's a there's a lot of trends underneath this megatrend it feels I in some people. Could consider me a millennial I guess I think you're either. A millennial or you're not but we'll go, talked? A lot about, affordability and. Jason I, will say no New York City is total. Totally an anomaly but I had a. Great lease on a car is a couple hundred dollars. A month but. To park. It four to five hundred dollars. In New, York City so I.