Sustainable innovation for shared mobility: contextual and consumer factors of an Indian car subscription business model

Abstract

PurposeThe paper aims to examine the nature and scale of the sustainability value of car sharing and to identify, through consumer analysis, the contextual and consumer factors of success of car subscription as a business model.Design/methodology/approachThe study evaluates the car sharing model against the sustainable development goals defined by the United Nations in 2019. Individual interviews were performed for preliminary understanding of the factors affecting consumers' choices. Subsequently, through two phases of data collection, factor analysis and path model analysis were performed to identify and confirm latent factors. Consumer market segmentation was performed using cluster analysis.FindingsCar sharing was found to have an overall positive net impact, with certain potential negative dimensions. Willingness, financial affordability, location and experience were identified as the key factors of consumers opting for car subscriptions. The findings further highlight the significant business potentialities of car subscription in India, consequent also to consumers' attitudes toward car ownership.Practical implicationsThe research has substantial implications for both society and business, with the former being presented with an innovative sustainable means of transportation, and the latter with the elements of success of an entrepreneurial business model to support the former.Originality/valueThe study is a pioneer in objectively evaluating and prescribing positive social and business value creation for and through car subscription in India, based on consumer analysis.