Globally, 75% of millennials chose owning/leasing a car over using ride-hailing services, if they would cost the same.
We also asked millennials about the fairly recent phenomenon of ride-hailing services (e.g., Uber, Lyft, Didi). Questions included whether these services were available in their neighborhood, whether they would cost the same as owning/leasing a car with insurance, and whether they would prefer owning/leasing a car or using a ride-hailing service. Overwhelmingly, 75% of millennials chose owning/leasing a car to ride-hailing. The results varied slightly by region, with Latin America at the low end with 66% and the U.S./Canada at the high end at 86%.
Preference in Car Ownership/Lease Vs. Ride-Hailing Services, If the Cost was Equal
By country, outliers include Brazil at 55% choosing car ownership/leasing, China (other than Hong Kong) at 58%, Italy at 62% and Singapore at 56%. These results, taken together, indicate that when cost is not a factor, millennials prefer to have their own car over using a ride-hailing service.
Brazil, Singapore and China Show the Most Interest in Ride-Hailing Vs. Owning/Leasing a Car Over Other Countries
This preference might have something to do with the high costs of reliance on ride-hailing24 compared to car ownership. Given this significant difference in cost and millennials’ preference of car ownership when cost is not a factor, it does not appear that ride-hailing will likely be a significant threat to car ownership/leasing for the millennial generation.
24 Stefan Knupfer, Vadim Pokotilo, and Jonathan Woetzel, “Elements of success: Urban transportation systems of 24 global cities,” McKinsey & Company, accessed September 25, 2019, https://www.mckinsey.com/business-functions/sustainability/our-insights/elements-of-success-urban-transportation-systems-of-24-global-cities.
Comprehensive support throughout mergers and acquisitions and other corporate transactions.
Middle-market M&A advisory differentiated by industry expertise and superior deal execution.
Transaction Advisory Services
Seamless analytical advisory through the deal continuum, from transaction origination to closing.
Financial Sponsors Group
Dedicated coverage and access to M&A deal-flow for financial sponsors.
Private Capital Markets
Senior, subordinated and mezzanine debt and venture/private equity for a wide range of transactions.
Fairness and Solvency Opinions
Independent opinions for boards of directors and special committees.
Industrials expertise for middle-market M&A transactions.
Pagemill Partners, a Division of Duff & Phelps
Technology expertise for middle-market M&A transactions.
Valuation and consulting for financial reporting, federal, state and local tax, investment and risk management purposes.
Governance, Risk, Investigations and Disputes
Combined Duff & Phelps and Kroll disputes, investigations, cyber, business intelligence, cross-border restructuring and other advisory.