Ride-hailing. Shared mobility. Carsharing, ridesharing. Mobility-as-a-Service (MaaS). Taxis. Transportation network services (TNCs) that have become household names like Uber, Lyft, or Bolt.
Innovative options such as Poppy or Blablacar. Whatever term you use, this concept is universally understood, whether at the airport, rushing to catch a Flixbus, returning home late at night, or venturing from the city to the countryside for a day trip.
This mode of transportation has become an integral part of the urban fabric. As cities expand, so too will their transportation systems.
Shared mobility is poised to play an even greater role in the daily lives of urban residents. Currently, the European shared-mobility market is valued at approximately 70 billion euros, with projections suggesting it could grow to 150 billion euros by 2030.
During the same period, the percentage of urban trips made via rideshares is expected to double to 7%, accompanied by increased public transit usage and a decline in private car ownership. With these transformations in mind, the question arises: how can ridesharing evolve sustainably?
The Eco-Friendly Nature of Ridesharing
Ridesharing offers a more sustainable alternative to private vehicle ownership through various mechanisms.
Moving away from car-centric urban planning could enhance the quality of life in cities. The Instagram account “Cars Destroyed our Cities” sheds light on the negative impact of highways, parking lots, and other car-focused infrastructure.
The account juxtaposes historical and modern images, illustrating how communities were displaced to make way for vehicles.
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These comparisons provide hope, showcasing that cities were not always dominated by cars and that strategic efforts could transform them in the future.
According to “Unparking,” a project by the MIT Senseable City Lab, private cars are idle 95% of the time, occupying space at home, work, and on streets. The study highlights that 2.2% of Singapore’s land area is dedicated to parking, making this space largely unusable.
A shift toward shared mobility in cities could significantly increase the efficiency of automobiles, as fewer vehicles would be needed to serve more people.
On-demand rides would eliminate the need for searching for parking spaces, and vehicles would operate with greater utility.
“The transition to shared mobility models will bring tangible reductions in parking infrastructure… As much as 86% of current parking spaces are freed up or repurposed if a complete switch occurs from private cars to shared mobility,” states the Unparking project.
This transition could reduce Singapore’s parking coverage to just 0.3%, freeing up valuable urban space for green areas, real estate, and wider, safer pathways for pedestrians and cyclists.
Fewer cars also mean fewer emissions. The European Environmental Agency (EEA) reported in 2023 that reductions in road transport emissions since 1990 have been a key factor in improving air quality in the EU, driven by carbon emissions standards and air quality directives.
Despite these advancements, air pollution remains Europe’s most significant environmental health risk, contributing to respiratory and cardiovascular diseases. While progress has been made, standards are not yet fully met, and further acceleration is needed. Ridesharing can contribute to this effort.
A report from the Dutch Ministry of Infrastructure and Water Management notes that one shared car can replace four to eight private cars.
Furthermore, carsharing subscribers tend to travel 18% less distance than private car owners, reducing CO₂ emissions by up to 2,265 kilograms annually per household.
This reduction not only improves urban air quality but also alleviates pressure on healthcare systems by preventing pollution-related illnesses.
Electrification and Multimodality in Ridesharing
The future of transportation is electric. Most major car manufacturers have committed to increasing electric vehicle (EV) production, and the EU remains steadfast in its plan to ban the production of internal combustion engine vehicles by 2035.
The McKinsey Center on Future Mobility suggests that ridesharing could gain a larger market share by incorporating more EVs to meet urban emissions-reduction goals.
Moreover, shared mobility services often complement public transportation systems. Markus Villig, CEO of Bolt, notes that over 40% of Bolt’s rides begin or end at public transit hubs. By serving as a crucial link in multimodal journeys, ridesharing relies on strong public transit networks.
To prevent upward substitution, where environmentally friendly modes like walking or cycling are replaced by less sustainable options, policies must align with consumer habits.
Incentives can encourage users to integrate ridesharing with other low-emission transportation modes.
For example, a study on Berlin’s mobility future revealed that combining shared mobility with walking, cycling, and public transport could reduce car trips by 20%, saving about 2 million tons of CO₂ by 2030.
Thanks to smartphone technology, multimodal transportation options are now more accessible than ever.
Challenges and Policy Gaps
A significant hurdle to sustainable growth in ridesharing is the lack of unified regulations across the European Union. Each member state has its own legislation, complicating operations for mobility providers.
Although the EU’s 2021 Urban Mobility Package represents progress, it falls short of providing comprehensive guidelines for ridesharing.
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Sustainable Urban Mobility Plans could drive change, but additional EU-level policies, such as financial incentives for EV adoption, would be more impactful in promoting eco-friendly shared mobility.
Policies for Sustainable Mobility
It’s important to acknowledge that no single solution can resolve the environmental challenges posed by transportation.
While private cars are convenient, their widespread use is not sustainable. However, cars are unlikely to vanish entirely, and the transition to greener mobility requires coordinated efforts.
The EU’s Sustainable and Smart Mobility Strategy outlines over 80 initiatives aimed at decarbonizing transportation, protecting auto workers’ rights, and promoting green skills. Policies supporting alternative fuels infrastructure and grid decarbonization are crucial for maximizing the potential of ridesharing.
Innovation in ridesharing presents numerous opportunities. For instance, a Horizon2020 EU project suggests replacing underutilized government vehicles with shared cars to optimize fleet costs. This concept could extend to corporate fleets as well.
With the right policies and support, ridesharing can drive cultural shifts, making cars a rarity while reducing traffic and pollution.
By transitioning to sustainable urban mobility systems, society can reclaim control over transportation, even as autonomous vehicles become the norm.