Automobiles have become an icon in the U.S. The development of infrastructure such as roads, highways, and parking lots throughout much of the 20th century removed friction in car ownership and led to widespread adoption.
According to a survey by Statista, in 2021 around 76% of U.S. commuters relied on a personal car to get to work or school. This was followed by public transportation at 11% and bicycles at 10%.
Investment Implications
Despite personal cars remaining the most popular form of transportation, the share of commuters relying on personal cars has decreased by nearly 10 percentage points compared to 2019.
The rise of new mobility alternatives such as ridesharing (Uber) and micro-mobility (Bird) companies have pressured the value proposition of car ownership. Unlike personal cars, ridesharing saw an increase in usage compared to 2019. Bike sharing solutions have also become increasingly popular, with adoption increasing by multiples.
COVID-19 also sparked a change in consumer habits, enabling many to work or study from the comfort of their home. Companies like Zoom and Microsoft made this easy.
Ultimately, as we look back, new alternatives and changes in consumer habits have influenced the value in car ownership. It’s interesting to consider how this will continues, and how legacy players will respond.
Twitter: @_SeanDavid
The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
