Highlights
Interview with İbrahim Aybar: From Automotive to Sharing Economy
Are you ready to witness a journey from the dynamic world of the automotive industry to the innovative vision of the sharing economy? In this special interview with İbrahim Aybar, one of the pioneers of the industry, we will learn important lessons from his rich career journey. We will discuss many topics ranging from the transformations in the automotive industry to sustainability steps, from the future of the car rental industry to the advice to be given to young professionals. Based on Mr. İbrahim's experiences, we will offer valuable insights that will shape both sectoral developments and individual career journeys. Join us on this journey and discover this fascinating journey from automotive to sharing economy.
Hello Mr. İbrahim, your career journey from the automotive industry to the sharing economy is quite impressive. What were the experiences that shaped you in this journey and can you tell us a little bit about the biggest factors in getting to where you are today?
Although I originally completed my university education as an Aerospace Engineer, I spent my professional life mainly in the automotive industry. I have worked as a senior manager in both production, distribution and marketing areas of the sector for many years. I ended my professional life by retiring in 2017 after working as Renault Mais General Manager since 2000 and as Chairman of the Board of Directors in 2016.
While I was working as general manager at Renault Mais, I observed that in the 2010s, the global automotive industry was rapidly shifting from owning the automobile to renting it for the short time it was needed and then letting it go. In 2011, the UBER app launched by Thomas Kalanick in the US caught my attention with its extraordinary growth rate. The Bla Bla Car initiative founded by French Frederic Mazzellawas another noteworthy application. Again in France, 4000 Bollore type B segment hatchback cars, which spread rapidly on the streets of Paris at the beginning of 2012 and use electric energy from batteries, attracted my attention. These cars could be rented digitally from mobile phones at any charging point and left at the charging point where the rental ended. You paid as much as you used digitally with your credit card. I was very interested in this car-sharing initiative called Autolib, which ended in Paris in 2018, but inspired us all enough. After retiring in 2017, I continued to focus on car-sharing applications globally. I conducted research abroad and wrote various articles on my own website. I was also closely following the Moov car-sharing application, which started operating within Garenta in our country in 2018.
In the 2019 local elections, Mr. Tunç SOYER was elected Mayor of Izmir Metropolitan Municipality. Tunç SOYER wanted to develop a modern urban transportation model in Izmir. I received the request through my good friend Osman Uslu and made a presentation to Mr. Tunç in August 2019. When the decision to start car sharing in Izmir at the beginning of 2020 came out of the meeting after the presentation, I entered the field of sharing economy as the co-founder of Vesiile Paylaşım Ekonomiisi Çözümleri A.Ş. With the contribution of my dear friend Zafer Salman, co-founder of RentiCar, we started the car sharing activity called Izmir Smart Sharing in February 2020 with Garenta Moov , where he worked in those years. Over time, 25 electric cars belonging to Izmir BB subsidiary Izelmanhave joined the fleet and the successful implementation continues.
At the end of 2020, my book SHARE , the first sharing economy book of our country, was published by Vesiile publications.
In 2022, PAYDER Sharing Economy Association was established and I was elected as the founding Chairman of the Board of Directors of the association. I still continue this duty.
In the same year, on November 15, 2022, we held our country's first international sharing economy summit in Izmir with the motto 'Sharing Adds Value'. We are continuing our preparations for this year's Summit meetings. I believe that the sharing economy, which will reach an economic size of $ 1.5 trillion globally in 2025, will offer great business opportunities in our country.
How would you describe the biggest changes in the automotive industry?
Since 2010, the most important transformation the global automotive industry has been experiencing is automotive electrification. By 2050, countries are reshaping their automotive industries for electrification in order to reach the carbon zero target globally. Battery-powered electric vehicles and hydrogen-powered vehicles will dominate the future.
As you know, the European Union, our largest export market, will not allow the sale of new fossil fuel-consuming motor vehicles in its 27 member countries as of 2035. This legal regulation, called the European Green Deal, is very important for us. Moreover, from 2026 onwards, if all our products to be exported to the European Union emit carbon or if carbon is emitted in their production, we will pay a carbon tax at the border. The carbon tax of €100 per metric ton will hit our competitiveness. Therefore, we must rapidly convert the fossil fuel-consuming motor vehicles produced in our country to electric vehicles produced with renewable energy sources.
Another important change is access to, rather than ownership of, the motor vehicle needed. Beyond the fact that motor vehicle prices are increasing, users are increasingly questioning why they pay high prices to keep these vehicles, which they use on average for only 1 hour a day, in parking lots. They prefer to use them when they need them, and for the time it takes to fulfill their needs. The global car sharing market will generate $15 billion in revenue by 2025. Research shows that the ten-year growth rate will be over 2100%. On the other hand, Robotaxi applications and autonomous transportation vehicles, which we will start to see frequently by 2030, will take us away from the necessity of using vehicles. City architectures and settlement plans will change. City areas will be much more human-owned. We need to shape our future bearing in mind that individual motor vehicle ownership will gradually come to an end.
What should be the sustainability steps in the automotive sector?
When we think of sustainability, we mostly think of environmentally friendly policies. I partly agree with that, but not only that. It is also important that the business model we build develops with financially sustainable and profitable investments. In my opinion, continuous investment in human resources, creating pioneering business models that shape the future of the automotive industry, gaining and maintaining the appreciation of the society through socially responsible initiatives are the sine qua non of sustainability.
What are your views on the impact of the sharing economy on the car rental sector? How do you assess the synergy between these two fields and what are the potential outcomes of this interaction?
The sharing economy addresses the short-term rental segment of the vehicle rental sector. I believe that gradually all vehicle rental companies will operate in this area. The free-floating model of leaving the vehicle at the destination, known as free-floating, has not yet overcome its operational difficulties, but it is constantly evolving. Station-based car sharing shows potential for development. The person-to-person rental model can also provide additional income for vehicle owners. It is necessary to work on this issue and direct vehicle owners to car sharing through reliable businesses. Vehicle rental companies in Turkey continue to operate mainly with corporate vehicle fleets. However, if more attention is paid to the vehicle potential of individuals, the resulting synergy will be much greater.
What are your predictions for the future of the car rental sector?
According to theTOKKDER report, from 2017 to 2021, the number of fleet units and corporate customers in our country had a downward trend. We see a stabilization in the last two years. As of the end of 2023, the vehicle leasing sector serves a total of 27 thousand corporate fleet customers with a fleet size of 250 thousand units. In 2017, these figures were 366 thousand fleet units and 64 thousand corporate customers, respectively.
Of course, there are various reasons for this. We can put the macroeconomic developments in our country at the top. Vehicle prices and financing conditions are directly affected by this. Therefore, monthly rental prices in TL cannot attract corporate customers. We observe that long term lease contracts are turning into shorter term leases of 12 months.
All these developments aside, I believe that vehicle leasing and vehicle sharing activities will increase significantly in the next 10 years, driven by customer demand for access to vehicles for short-term daily use. Short-term daily use will be preferred over long-term contracts. I am sure that the businesses in the vehicle rental sector today are aware of this trend. The fact that autonomous driving will become widespread in the near future confirms this view.
What are the challenges you face and what are your solutions?
The concept of sharing economy is actually deeply rooted in our culture. For this reason, although people are still hesitant, I think the pace of development will be high. Moreover, entrepreneurs engaged in sharing economy activities are signing new and attractive initiatives by using many technological innovations. For example, as of 2023, approximately 500 million people across the US, China, Germany, France, France, the UK and the United Arab Emirates have shared assets, property or services in the last 3 years to earn income. Over 680 million people consumed these sharing economy assets or services in the same period.
It is very important that legal regulations in our country are handled in a way that paves the way for the sharing economy. Progress needs to be made in this regard. Guaranteeing free labor and labor rights, preventing criminal attempts against shared assets, and ensuring that individual entrepreneurs receive fair financial support will enable many of our people to participate in shared business areas. Let us continue to work tirelessly by seeing the opportunities of the future in sharing. If we are to develop, we will share, we will develop by sharing.
What would be your main advice to young professionals?
I am sure that our young entrepreneurs will find many new ventures related to the sharing economy. They can use digital technologies widely. They do not like to be in a hierarchy. As long as they are aware of their competencies and work tirelessly. They should not put limits to their dreams. There are unlimited examples of success in sharing practices around the world in the last 10 years.
For example, read the story of Brian, Nathan and Joe, three young people who founded AirBnB, a great success story. In 2008, when they started in their twenties, no one knew who they were. Last year, 150 million people using the AirBnB app stayed over 1 billion nights and the AirBnB company value was $113 billion.
Similarly, Daan Weddepohl from the Netherlands, who developed the idea of sharing belongings by borrowing items from his friend while dealing with many domestic problems in 2011, is now the owner of a $4 million business with the digital application Peerby.
The formula is very clear: We will be entrepreneurial, we will look scientifically, we will keep our courage, we will not hesitate to seek advice, we will take risks and we will work hard and love our work. In the end, luck will help us. Therefore, they should plan well, organize well, implement well and follow up to the end. They will surely succeed.
