Owning a car is not a status symbol for Gen Z and Millennials
Due to evolving consumer-preferences, mobility service companies are revamping their car-leasing services.
Generation Z and millennials no longer see car ownership as a status symbol compared to previous generations, leading to a surge in car-leasing and car-sharing in Singapore.
Marcus Low, Head of Business at Lylo, mentioned that car-leasing and sharing services have become a functional benefit that consumers can choose to lease or rent the car whenever they want.
“With regards to the lifestyle and subculture changes of millennials and Gen Zs, they do not see owning a car as a status symbol as much as previous generations. It's more of a functional benefit now, where they can use the car whenever they deem fit, which is why car leasing and car sharing has increased in demand.” he said.
Low added that car prices have also doubled in the past couple of years, making it unaffordable for most millennials and Gen Zs.
Companies like Lylo are adapting their service offerings to meet the increasing demand by transitioning the entire car-leasing process online.
“Car leasing was a very traditional industry in the past, where you have to head down to the venue to rent a car, fill up a bunch of forms and then pick up the car.” Low said, “What we're trying to do is to bring the entire consumer journey online, almost like an e-commerce purchase, and also reduce the waiting time when they come and collect the actual vehicle.”
Low acknowledged that convenience is one of the key requirements in meeting the demands from Gen Z and millennials, as these consumers prefer immediate gratification.
“Immediate gratification has allowed us to bring the entire consumer journey online, where consumers can shop, select their add ons, key in their details online before they come in and collect the car, which has shortened the consumer journey,” he said.
According to Low, the consumption patterns of these younger generations who favours platforms like TikTok and YouTube Shorts over long-form content reflects their shortened attention span.
“Short form videos are a lot more popular nowadays versus long form videos, where the attention span of these generations is a lot shorter,” Low said, “It has given us a lot of leeway with this generation because they're so used to such a consumer journey.”
He also mentioned the concept of 'value for money' resonates strongly with these generations. While they're not solely driven by the cheapest option, they deeply appreciate value-added services.
“It doesn't necessarily mean that we have to be the cheapest. It is obviously a plus, but by being value for money in terms of providing value added benefits. For example, providing charging cables or mobile phone holders helps to build the overall car leasing experience,” he said.