The smartphone and the sharing economy have given rise to a raft of travel tech startups but is the market becoming saturated? Not if millennials have anything to do with it, writes Jens Wohltorf

For generations, cars have offered their owners an unrivalled promise of freedom. But with the growth of smartphone technology putting this in the palm of our hands, the tide seems to be turning.

Car ownership levels in the UK and across Europe have been in decline since 1997. In the UK, the distance travelled per person per year is down 7%, according to a survey by the National Trust. And research by Transport for London finds that 40% of London households do not own a car. The logical explanation for the car’s recent fall from grace is simple: travel technology.

According to a recent study of 18 to 30 year olds carried out by Telefónica, 76% of young people own a smartphone today, giving them access to all sorts of transportation, and this tends to work out far cheaper than having a car. For those living in a city, many alternatives are available. For one, usually there is a good public transport infrastructure in place, which means that taking a bus or train is a practical and affordable alternative.

In addition, city bike hire schemes are rising in popularity – most of these have a variety of payment options, as well as convenient drop-off points around the city. For inter-city connections, travel technology companies such as Busbud are making it easy for people to travel to other cities by bus.

Milliennials on the move

For millennials, whose behaviour is often driven by their smartphones and who are keen to stay as connected as possible, the sharing economy is growing in popularity, especially when it comes to transport. One such example is carpooling, which saves both driver and passenger money, as well as economising fuel. Paris-based BlaBlaCar and Munich-based Carpooling.com are two of the major players. BlaBlaCar now boasts over 10 million users, a fifth of whom use the service every month. 

Smartphones are also essential for on-demand ground transportation services, such as Uber, Hailo and car2go, and professional car hire services, such as Blacklane. These companies offer services around the world, providing consumers with multiple choices to get from A to B.

Through smartphones, consumers can reserve a vehicle and driver for a chosen time and then pay for it at the click of a button, meaning that there is no need to carry cash. Using these services, travellers can work and communicate with friends using 4G or WiFi, rather than having to keep their eyes on the road. There is also a sense of variety and choice, as consumers can vary the vehicle, depending on the occasion.

Ground transportation companies such as Blacklane and Uber can build global platforms, available on a range of mobile devices, quickly and easily. This means that customers can enjoy a seamless service around the world, which is easier than hiring a car and driving on foreign roads.

Car manufacturers are recognising this trend away from car ownership and are investing in solutions to complement their automotive offering. Daimler, for example, now offers mobility services in partnership with car2go, moovel and Park2gether. Daimler has also invested in various transportation startups, including Blacklane, Carpooling, FlixBus, mytaxi and RideScout.

All of this new technology is quickly becoming an integral part of everyday life, especially for millennials. The sharing economy is widely accepted, and people use online car services frequently. Travel technology players have their own niches, meaning that the success of one does not necessarily preclude the success of another.

With car manufacturers beginning to respond to these new technologies, there is plenty of room for further development within the travel technology sector. The future of transport looks bright, but the future of car ownership less so.

This guest post was penned by Jens Wohltorf, co-founder and chief of Blacklane, a ground  transportation service for the discerning traveller