The country has become one of the latest playing fields for the emerging car-sharing industry, a booming sector that actually thrives from the country’s well-known heavy regulated transport market.
A French company that can help owners rent out their own vehicles recently acquired a German rival, showing how the country’s car-sharing sector is increasingly well-suited across the booming emerging industry. Drivy, established back in 2010, which has already purchased two local rivals also announced it would acquire Autonetzer, transforming it into a leader across the European car-sharing market – with 38,000 registered vehicle owners in France and Germany. The service plans to also expand in Spain after the deal that was financed from the 8 million euros ($8.8 million) in funds the firm had secured last year. The booming Internet-enabled car sharing industry is flourishing in France lately, in part due to the country’s heavily regulated transport industry.
For example, the level of regular taxi operators is limited – new cab drivers need to purchase licenses from retiring peers and can often spend hundreds of thousands of euros in some cities. Also, only this year bus travel regulations were eased after coach and bus operators were in the past banned from carrying passengers on long-distance routes. Meanwhile, car sharing companies have flourished as Internet in general and the wide ownership of smartphones in particular, enabled them to reach a wide customer base with ease. Uber, for example, the world’s leading car-sharing company, based out of San Francisco, could end up being one of France’s ten largest companies if it would envision an IPO in the country.
Via Automotive News Europe