Car Sharing in Taiwan: Overcoming Regulatory and Parking Challenges

Despite its dense urban layouts, proximity of amenities, and a well-designed public transportation system, Taiwan maintains a strong car ownership culture. The number of passenger cars in Taiwan reached 7,385,394 in June 2024, with a 2024 survey showing that 47% of Taiwanese respondents owned a car. Even more striking, 70% of Taiwanese people would still choose to buy a car instead of renting or sharing.

With services like YouBike, iRent, and GoSmart, shared mobility is gaining momentum, particularly among the younger generation, challenging deeply ingrained cultural norms. But can shared mobility truly thrive in a landscape where parking is as precious as real estate, and regulations remain ambiguous?

Join us as we navigate the complexities of Taiwan’s car sharing landscape with Rhett Ho, former Managing Director of Zipcar Taiwan. We’ll explore Taiwan’s current car sharing market, uncover the unique challenges operators face, and peer into the future (and opportunities) of shared mobility in this dynamic island nation.

Table of Content

• Car Sharing in Taiwan: History and Current Landscape
• Major Players for Car Sharing in Taiwan
• Driving factors of the Taiwanese Car Sharing Market
• Challenges Taiwanese Car Sharing Operators Face
• Future Market Trends for Car Sharing in Taiwan
• Navigating Toward a Shared Future

Car Sharing in Taiwan: History and Current Landscape

The shared mobility market in Taiwan, particularly car sharing, has been experiencing significant growth and development in the past few years. It is expected to generate a revenue of US81.99 million in 2024 and reach a market volume of USD 89.89 million by 2029.

Taiwan’s journey into shared mobility began in 2010 with the launch of YouBike, a bike-sharing service initiated by local manufacturer Giant in collaboration with Taipei’s government. This innovative program provided a cost-effective transportation solution and fostered a sharing mentality among residents. Rhett Ho, former Managing Director of Zipcar Taiwan, notes, “It was a cost-effective solution that gained widespread popularity and encouraged the launch of other shared mobility services.”

iRent entered the market as Taiwan’s first car sharing service in 2015. Backed by Toyota’s extensive experience in the industry, iRent quickly established itself as the market leader and expanded its fleet to over 10,000 vehicles by 2024. The arrival of Zipcar in 2017 marked another significant milestone, increasing the variety of sharing options available to consumers.

The Taiwanese car sharing market experienced a substantial boost during the COVID-19 pandemic in 2020, as many residents turned to car sharing as a safer alternative to public transportation. User numbers and market size surged, prompting operators to enhance cleaning protocols and expand their fleets to meet the rising demand.

Major Players for Car Sharing in Taiwan

Today, Taiwan’s car sharing landscape is dominated by four key players:

1. iRent: The market leader with a fleet of over 10,000 cars and 10,000 electric scooters, offering a diverse range of sharing models, including station-based, one-way, and free-floating options.
2. GoSmart: Backed by Nissan, GoSmart operates a fleet of 2,500 vehicles, providing diverse options and competitive pricing.
3. uRide: Launched in January 2024, uRide is the newest entrant with ambitious plans to double its fleet from 500 to 1,000 vehicles by the end of the year.
4. Zipcar: A well-known brand that has been operating in Taiwan since 2017, offering a selection of vehicles, including premium options like BMW.

Driving Factors of the Taiwanese Car Sharing Market

Several key factors are fueling the growth of car sharing in Taiwan:

Shifting Consumer Preferences

Driven by increasing concerns over air pollution and traffic congestion, younger generations in Taiwan are increasingly prioritizing sustainable and cost-effective transportation options. Many of them are opting for shared mobility solutions instead of owning private vehicles, as car sharing offers a flexible, convenient alternative to car ownership.

Urban Challenges

Taiwan’s limited land area and densely populated cities make private car ownership impractical for many residents, leading to a growing interest in shared mobility solutions. Rhett Ho adds: “The space constraints, especially in urban areas, have accelerated the adoption of car sharing as a more practical and efficient way to travel.”

Technological Advancements

The rise of digital platforms and smartphone applications has made it easier than ever for consumers to access, book, and manage car sharing services. This technology-driven trend has also spurred the growth of peer-to-peer car sharing, where individuals can rent out their own vehicles. Additionally, car sharing services are increasingly integrated with other forms of transportation, such as public transit and ride-hailing, creating a seamless, multi-modal travel experience for users.

Challenges Taiwanese Car Sharing Operators Face

Despite the growth of car sharing, the market faces significant challenges.

1. Regulatory Ambiguity

Taiwan needs clear guidelines tailored to the car sharing industry. Operators must comply with car rental regulations despite the differences between car sharing and traditional car rental.

Misalignment with Car Rental Rules
Car sharing companies must register as car rental businesses, even though their services are fundamentally different. This creates conflicts with regulations designed for traditional car rentals.

Incompatible Requirements
For example, conventional car rental rules mandate:

• Special license plates for all vehicles
• Specific handover locations
• Fixed, transparent price lists

These requirements often clash with the flexibility of car sharing, especially free-floating services that feature dynamic pricing and minimal physical interaction. However, as Rhett Ho explains, “As long as the government is not complaining, operators keep doing their business.” As a result, this regulatory uncertainty hampers long-term planning and investment.

2. Parking Challenges

In densely populated cities like Taipei, parking is both scarce and expensive. A single parking spot can cost up to 1.5 to 3 million TWD (approximately 42,500 to 85,000 EUR), significantly impacting operational costs.

Limited Availability
Street parking is primarily reserved for residents, while car sharing vehicles must pay hourly rates for public parking, just like any other vehicle. Companies such as Zipcar and uRide currently pay hefty monthly fees to secure reserved parking spaces in the city.

Operational Constraints
The scarcity and high cost of parking limit opportunities for expansion and impact user experience, especially for free-floating models that rely on flexible, easy access to vehicles.

3. Pricing Pressures

Taiwan’s car sharing market is highly competitive, with intense price pressures primarily driven by operators backed by original equipment manufacturers (OEMs). Significant players like iRent (supported by Toyota) and GoSmart (backed by Nissan) can afford to set meager prices thanks to their financial resources, forcing other operators to lower their rates.

Unsustainable Pricing
This aggressive pricing has led to unsustainable conditions for independent operators, with some car sharing services being offered at rates even lower than scooter sharing. For smaller companies, this pricing structure not only makes profitability a constant challenge but could lead to market consolidation.

Current Pricing Landscape

• Scooter Sharing: 180 TWD per hour / 3 TWD per minute (~5 EUR per hour / 0,08 EUR per minute)
• Car Sharing (iRent, GoSmart, Zipcar): 160–300 TWD per hour + Petrol fee 3 TWD per km (~4.5–8.5 EUR per hour + Petrol fee 0,08 EUR per km)
• Car Sharing (uRide): 100 TWD per hour (~3 EUR per hour) (special campaign for almost one year long)

The downward pressure on prices threatens the sustainability of independent operators, who struggle to compete in this pricing war.

Future Market Trends for Car Sharing in Taiwan

Rhett predicts significant growth for car sharing in Taiwan, stating, “Car sharing is set to become the future of car rental in Taiwan.” His market analysis highlights a growing demand and suggests that there is ample opportunity for additional car sharing services. He elaborates, “The more cars available, the more users will appreciate and use the service.”

The former Managing Director of Zipcar Taiwan also draws parallels with the successful evolution of Taiwanese micromobility market. Beginning with just one bike-sharing operator, Taiwan has grown into one of the most advanced micromobility markets. The car sharing sector has the potential to follow a similar trajectory.

Rhett identifies two key factors for industry growth.

• Stable and reliable technology infrastructure for scaling and integrating electric vehicles.
• Clear regulatory framework for car sharing operations.

Rhett emphasizes, ” Significant growth cannot be achieved without government support and an improvement in the parking situation.”

Navigating Toward a Shared Future

Taiwan’s car sharing market stands at a crossroads. While facing significant regulations, parking, and pricing challenges, the industry shows immense potential for growth. The success of micromobility services in Taiwan provides a blueprint for what car sharing could achieve with the right support and infrastructure.

As urban congestion and environmental concerns grow, car sharing is poised to play a crucial role in Taiwan’s transportation future. However, realizing this potential will require a concerted effort from operators, regulators, and urban planners to create a sustainable and thriving car sharing ecosystem.

The coming years will be critical in determining whether car sharing can overcome its current hurdles and become integral to Taiwan’s urban mobility landscape. With the right approach, Rhett is confident that Taiwan could emerge as a model for successful car sharing implementation in densely populated Asian cities.