From products to services
The model is a simple one but transformational. Instead of owning your own car, the company owns then and makes sure that they are distributed throughout the city. Bookings are made online or by phone. You access the vehicle with your membership card, and pay the hourly or daily rate. But you don’t pay anything else – no tax, insurance, congestion charge, or depreciation.
It’s transformational because it changes the business model from ownership to access (as Jeremy Rifkin predicted in his book The Age of Access several years ago) and effectively reduces consumption as it does so.