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Illustration: Caroline David for Bloomberg Businessweek
Businessweek
Peak Car

This Is What Peak Car Looks Like

For many people, new forms of mobility are making privately owned vehicles obsolete.
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After one too many snowstorms, Boston tech executive Larry Kim had had it with shoveling out his car and struggling to find parking. So in 2014 he ditched his Infiniti luxury sedan and began commuting by Uber and Lyft—at an annual cost of as much as $20,000. “I would never go back to owning a car,” says Kim, chief executive officer of MobileMonkey Inc., a Facebook Messenger marketing platform, who says he’s recovered an hour a day by not driving. “Your time is not free, right? Your time is worth more than $20 an hour. So in my case, why not spend $15,000 to $20,000 a year to get all of that time saved?”

The automobile—once both a badge of success and the most convenient conveyance between points A and B—is falling out of favor in cities around the world as ride-hailing and other new transportation options proliferate and concerns over gridlock and pollution spark a reevaluation of privately owned wheels. Auto sales in the U.S., after four record or near-record years, are declining this year, and analysts say they may never again reach those heights. Worldwide, residents are migrating to megacities—expected to be home to two-thirds of the global population by midcentury—where an automobile can be an expensive inconvenience. Young people continue to turn away from cars, with only 26 percent of U.S. 16-year-olds earning a driver’s license in 2017, a rite of passage that almost half that cohort would have obtained just 36 years ago, according to Sivak Applied Research. Likewise, the annual number of 17-year-olds taking driving tests in the U.K. has fallen 28 percent in the past decade.