Our conviction of the month: private vehicle delivery has a promising future !

Vehicle transport by individuals is an emerging trend that is gaining ground in Europe. This model, often called "vehicle carpooling," involves entrusting the transportation of a vehicle to a private individual traveling in the same direction as the desired route. This alternative to traditional transport offers several economic and environmental benefits and meets a growing demand for flexible and affordable transport services.?

As with car-sharing, the rise of digital platforms is making it easier to bring vehicle owners and couriers together. Specialized applications and websites simplify and secure transactions, while offering transparent options in terms of price and availability. This digitalization of the market is making this service accessible to a wider public.?

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How Individual Vehicle Transport Works?

The concept of vehicle transport by individuals relies on online platforms that connect vehicle owners with professional or non-professional drivers. These drivers, often traveling for personal or professional reasons, are offered the opportunity to transport a vehicle in exchange for financial compensation or coverage of transport costs (fuel, tolls, etc.).?

Vehicle owners and professional mobility services sellers benefit from an economical solution to move their vehicles, often at rates lower than those offered by professional transport companies. On the other hand, drivers can reduce the costs of their own trips by sharing expenses.?

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Advantages and Opportunities

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1. Cost Savings: The main advantage for vehicle owners is the reduced cost compared to professional convoy services. For drivers, it’s an opportunity to lower travel expenses while earning a supplementary income.?

2. Flexibility and Simplicity: Individual vehicle transport offers great flexibility in terms of scheduling and availability. Platforms allow owners to quickly find a driver for a specific trip, often with shorter delays than professional transporters.?

3. Reduced Carbon Footprint: By optimizing already planned trips, this model helps reduce CO2 emissions by using existing journeys instead of adding a new trip solely for vehicle transport.?

Challenges and Risks?

1. Safety and Trust: Transporting vehicles by individuals raises concerns about safety and reliability. Vehicle owners must sometimes trust non-professional drivers, which can be a source of anxiety. To address this, platforms have implemented rating and identity verification systems.?

2. Insurance and Liability: One of the main issues in this model is insurance. It is essential that the vehicle is covered during transport, which may require an extension of the owner's usual coverage or a specific policy which prevails on the primary owner insurance and which is proposed by the platform.?

3. Regulations: The legal framework surrounding individual vehicle transport varies by country, and there can be gray areas regarding labor or transport regulations. Platforms need to comply with local laws to avoid legal complications.?

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The Insurers' Position on the Market?

The insurance sector plays a crucial role in the vehicle transport market and this specific use-case of carpooling, offering specific coverage that addresses the inherent risks of this type of activity. Insurers quickly recognized the importance of this growing market and developed tailored insurance products to meet the needs of convoying companies. These offerings include coverage for material damage, third-party liability, theft, and financial losses related to delays or incidents during transport.??

Additionally, with the rise of luxury and electric vehicles, insurers are adjusting their policies to include more specific coverage, such as battery protection or sophisticated electronic systems. Insurers' strategic positioning involves offering flexible and personalized solutions, allowing convoy companies to effectively manage risks while reassuring customers about the service's safety and reliability. This enhanced role of insurers helps further professionalize the sector and support its sustainable growth.?

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Market location?

Vehicle transport by individuals is particularly dynamic in certain European countries:?

- France: A pioneer of carpooling, France has seen the emergence of several platforms facilitating vehicle transport by individuals, enjoying broad user acceptance.?

- Germany: With a strong car-sharing and carpooling culture, Germany is a mature market for this type of service, supported by a well-developed digital infrastructure.?

- United Kingdom: The UK, with its strong inter-regional mobility, offers fertile ground for the development of individual vehicle transport, especially for long-distance trips.??

?Italy: Italy is a growing market for vehicle transport, with a solid automotive industry and increasing demand for used cars, especially in urban areas. Its geographical positioning makes it a strategic hub for North-South logistics in Europe.?

A market dynamic driven by online vehicle sales :??

The practice of private vehicle transport is gaining traction in Europe. This model, often referred to as "carpooling," involves entrusting the transportation of a vehicle to a private individual traveling in the same direction as the desired itinerary. This alternative to traditional transport offers a number of economic and environmental advantages, and meets a growing demand for flexible, affordable transport services.?

The digitization of automotive transactions has encouraged the growth of private courier services.??

Online transactions between private individuals for the sale or purchase of used vehicles have exploded over the last ten years, and despite a lull in 2023, the momentum looks set to continue.??

For example, in November 2023, the used car market was up 5.5% on the same period the previous year, with 443,890 second-hand vehicles sold online. (Caradisiac).??

Individual car delivery continues to grow, and appears to be consolidating around players who are establishing themselves as leaders in this new mode of goods transport.

Main Players?

Several online platforms dominate the vehicle transport market by individuals. Here are some of the main ones:?

1. DriiveMe??

?? - Description: DriiveMe, which looks like a real market leader in Europe, offers an innovative model where vehicles are transported for €1 by individuals who want to travel for free or at a lower cost. The vehicles are often rental cars that need repositioning, but individuals can also offer their own vehicles.?

?? - Geographical Reach: Present in France, Spain, the UK, and other European countries.?

2. Otoqi?

?? -Description: Otoqi is a French platform offering vehicle transport services, with an option for individuals to convoy cars during their journeys. Otoqi focuses on service quality with a rigorous selection of drivers.?

?? - Geographical Reach: All over Europe?

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3. Bring4You?

?? - Description: Bring4You is a French platform that allows individuals to transport parcels, furniture, and vehicles by connecting with drivers traveling in the same direction. It works on the principle of "goods carpooling," including cars.?

?? - Geographical Reach: Mainly in France, with growing coverage in Europe.?

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4.Hiflow?

?? - Description: Hiflow offers individual vehicle transport services across Europe. Users can find drivers heading to their desired destination, with included insurance for transport.?

?? - Geographical Reach: Europe, with a strong presence in France, Belgium, and Spain.?

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5. Pop Valet???

?? - Description: Pop Valet allows users to find drivers to transport vehicles in France. It stands out for its cost transparency and the ability to track the vehicle in real time.?

?? - Geographical Reach: France, with gradual expansion to other European countries.?

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These platforms provide vehicle owners with flexible, cost-effective, and often more eco-friendly transport solutions while offering drivers the opportunity to reduce their own travel expenses. The success of these services relies on trust, transparency, and safety, with rating and insurance systems that enhance the reliability of transactions.?

Conclusion?

The private vehicle delivery market is at a turning point in its evolution. The outlook is encouraging, with opportunities for expansion, technological innovation and consolidation around emerging leaders. However, long-term success will depend on platforms' ability to build user confidence, navigate a changing regulatory landscape, and adapt their services.?