The carsharing market in Russia: Factors of formation and development trends

Abstract

The paper identifies the factors that have influenced the development of the carsharing market in Russia, analyses current trends and identifies the problems hindering the development of the service. As the research shows, the carsharing market developed at a fast pace in 2015-2021, not counting the pause in the first half of 2020 caused by the coronavirus epidemic. This was facilitated by the benefits that carsharing offers to users, as well as government support for carsharing services. It is revealed that users’ interest in this service grew from 2015 to 2019, then the trend changed to a negative one. Analysis of internet users’ search queries reveals that their awareness about carsharing has increased by 2022 as compared to 2019. In 2022, the market for carsharing services saw dramatic changes due to the departure of a number of foreign car manufacturers and difficulties with the supply of spare parts. It is concluded that the carsharing market has a high degree of monopolisation. The most significant factors limiting the development of carsharing include the rapid growth of tariffs, difficulties in renting a car within walking distance, user concerns about possible damage to the car, technical failures, leakage of personal data, and a lower sense of privacy, security and comfort compared to a private car. The elimination of the identified negative factors (curbing fare increases, state support of carsharing companies in the regions, improved accessibility of carsharing, etc.) will contribute to a more rapid development of this service.