Don't Buy, Carshare!

The idea for the business "HiGear" came several years ago and was developed by a man named Murtaza Hussein. It came about when he one day decided that he would spoil himself with a new BMW Z4 roadster. But what Mr. Hussein did not realize was that, while this roadster is definitely a piece of art to look at, the two-seater limit really stunted the vehicles functionality. In return, this beautiful piece of art spend most of its time in the garage. So what did Hussein do? He decided to rent it out to his friends! The feedback that he received from his friends made him realize that they might not be the only ones interested in renting such a vehicle. And this is where his business idea for HiGear began.

So what exactly is HiGear? Launched three months ago, HiGear is a business that was created by Martaza Hussein which allows owners of luxurious or sporty vehicles to rent them out to people who want to drive them, but don't want to buy them. The business is known as a twist on the regular "car sharing" idea.

According to Hussein, there are many carsharing companies out there, but most of them place their focus on renting vehicles to people who are in the midst of car shopping. The business model for HiGear is slightly different in that it is not for car shoppers, but for people who simply want to drive a luxurious vehicle. In most cases, this will probably be for a birthday, anniversary, or some other special occasion.

A similar company was created by a man named Shelby Clark. His business idea came one day when he had to ride his bicycle on a cold winter day just to rent a car. Known as "RelayRides", Clark's business idea is very similar to Husseins, except Clark focuses more on mainstream vehicles as opposed to luxury ones. The two companies share the concept, twisting the idea of "car sharing".

How will these businesses make money? In busy and crowded urban centers such as New York, San Francisco, and Paris, many people want the convenience that comes along with a vehicle, but don't want the hassle of actually owning one. This fact alone suggests that the concept of carsharing will see great success.

Of course, Hussein and Clark are not the first ones to have this idea. The most well-known company in a similar area of business is Zipcar. Founded in 2000, the Zipcar company owns a fleet of vehicles which they make readily available by scattering them in popular locations around town. Once a customer buys a Zipcard, they can line up a rental immediately, regardless of the day or time. The card itself will unlock the vehicle, where the keys are hidden inside. Vehicles are rented by the hour as opposed to by the day, a concept which comes natural to most of their customers.

For green friendly customers, a new carsharing service will soon be launched in Paris, scattering a variety of electric powered vehicles around the city. Like Zipcars, these can be rented on the spot.

As for services like RelayRides, these are specifically appealing in communities that are very socially active. But what will draw people to such businesses? If not for the convenience, many people will be attracted to the cost. According to RelayRides, the average vehicle costs over $250 per month to rent. RelayRides can save owners up to 65% of that. As for HiGear, the average cost of renting a more luxurious vehicle (BMWs, Lamborghinis, etc) is $410. HiGear can help customers save up to 70% of that.

And while carsharing is expected to be a growing trend, it is not expected to change the number of people who buy cars. If anything, it could increase car sales by familiarizing customers with automotive products. If they have a good experience in a vehicle, they may be more apt to buy that specific vehicle in the future.