Recent reports suggest that young people care deeply about sustainable transport and are spearheading an industry shift that focuses more on sustainability than style or status.
Transport companies and car manufacturers will need to rethink the way they approach Gen Z audiences if they want to maintain a strong presence with younger consumers.
According to a recent report by Allision and Partners US, Gen Z do not view vehicles as measures of status or financial success. In fact, 56% of young people that were sampled said they regarded cars as ‘just a means of transport’, suggesting that Gen Z are prioritising shared experiences, sustainable transport, and convenient travel over aesthetic.
We’ve seen car sharing applications such as Uber and Lyft explode in popularity over the last five years or so, offering easy and cost-effective solutions for Gen Zers to get about without the need for personal car ownership. Uber recently announced a bunch of green initiatives such as all-electric taxi rides and zero carbon emission goals by 2030, which was no doubt in part a response to growing demand from young consumers to be environmentally responsible.
Other transport companies will need to follow suit, especially as fewer young people are interested in buying their own cars and vehicles than ever before. Allison and Partners stated that 70% of young people have yet to obtain a driver’s license and 30% said they’re not in a rush to get one. In addition, Gen Z and millennials made up 57% of all rideshares in 2017, and that number is only growing.
Convenience ridesharing apps are in and borrowing cash in order to own a Ferrari is out, at least with teenagers and young adults.