Who gives up a private car for a car-sharing service? An empirical case study of Incheon City, South Korea

Car-sharing services are an example of sharing economy business models in urban transportation. Car-sharing is attracting global attention as a practical test subject within sharing economies. A few studies have been conducted on the effects of car-sharing, but little research has been performed on the effects of car-sharing on the disposal of owned cars and the purchase of new cars. This study analyzes the characteristics of people who change car ownership plans or intentions to purchase a private car after using car-sharing services. We conducted a survey on car-sharing users, focusing on the question, “Has there been a change in private car ownership and purchase plans after using car-sharing?” We used a multinomial logistic regression model for statistical analysis. Based on our main findings, we suggest four strategies to promote car-sharing. First, there should be a focus on car-sharing coupons or promotional brochures for women who are considering buying a new car. Second, there should be promotions for elderly users of car-sharing. Third, car-sharing stations should be established near residences with low household membership, low household income, and limited space for parking. Fourth, the service management status of car-sharing companies contracted with local governments should be assessed to maintain high satisfaction levels in users. This study is meaningful in that it presents specific policies to both increase the use of car-sharing and reduce private car ownership.