Ford Motor Co. is testing a new car-sharing program that will allow customers to rent out Ford cars on a temporary basis using a peer-to-peer car-sharing app. The program is set to begin immediately in seven cities, including San Francisco, Oakland, Berkeley, Portland, Chicago, Washington D.C., and London. 

The cars will be sourced from real Ford owners willing to rent out their vehicles, helping those owners offset their vehicle ownership costs. Customers, meanwhile, will be pre-screened and invited from Ford’s “Ford Credit” program, the financing arm of the Detroit-based motor company. As a result, the initial customers will likely be persons who have bought or leased a Ford vehicle in the recent past. Ford has stated that somewhere between 12,000 and 14,000 customers have been invited to participate in the initial program roll-out.

A New Peer-to-Peer Car-Sharing Service

To get off the ground in the US, Ford has partnered with Getaround, a peer-to-peer car-sharing company launched in 2011. The San Francisco startup will manage the program by screening drivers, collecting funds, and by providing a $1-million insurance policy. Getaround will also suggest a rental rate to customers based on the make, model, and location of the vehicle. Rates will typically be from $7 to $12 an hour, but customers also can set their own price. Similar services will be provided by easyCar Club in London, which Ford has hired to handle its similar UK pilot.

The New Trend in Alternative Transportation

Ford’s program is part of a new trend towards alternative transportation. Millions of Americans—especially millennials—are already using ride-sharing services like Uber and Lyft. Unlike Uber and Lyft, however, Ford’s program is not designed to supplant one-way taxi services. And unlike current car sharing services, like ZipCar, BMW’s DriveNow (in Europe and San Fransciso), or even Ford’s own Ford2Go (in Germany), the fleet in Ford’s new program won’t be company owned or managed.  Instead, by having owners share their own cars, Ford is hoping to blaze a new trail in American transportation and create what some have called “an Airbnb on wheels.”

That’s not to say that it hasn’t ever been done before. Several small startups, including RelayRides, FlightCar, and Getaround, have already pioneered the concept in limited markets. GM, too, launched a similar car-sharing program in 2012, but shuttered it not long after. Ford is hoping that it will have better luck now as more and more Americans turn to alternative transportation.

The Long-Term Payoff

It’s not clear what Ford’s long-term pay off will be. Most people believe that car and ride sharing services like Uber, Lyft, and ZipCar actually discourage customers from purchasing new cars. In theory, Ford’s new program should be no different. Customers are hesitant to invest large sums of money in a new vehicle when ride and car sharing services are easy and affordable.

Ford sees it differently. Ford hopes that customers will be so impressed with the vehicles they rent that they will want to buy a Ford when purchasing a car of their own. And by allowing Ford owners to recuperate some of their expenses by renting out their own vehicles, Ford also hopes that purchasing a Ford car will look more affordable. 

Only time will tell if Ford’s new program will give its sales a lift. But as more and more people change the way they view and access cars, Ford’s program seeks to ensure one thing: it won’t be left in the dust. 

Topics: Uber