Ford Launches Ride-Sharing Pilot Program, Also Unveils 'Mode: Flex' Smart Bike Design Concept

Ford Motor Company F has launched a ride-sharing pilot program in 6 U.S. cities and London that'll allow customers financing their vehicles through Ford Credit to rent those vehicles to other drivers for short durations. The company also unveiled 'Mode: Flex' design concept, which is a smart foldable bike that'll be able to detect and warn riders against potholes.

Former Vice Chairman of Global Product Development at GM, Bob Lutz, was on CNBC recently to weigh in on this.

It's A Ford Credit Scheme

"I think, they are just doing the obvious. It's clear that things like car-sharing are an extension of urban mobility where you don't have to buy the car. The only new thing here is that they have a deal where the customers are able to rent it out."

"And I don't see it as, it's basically not so much a Ford Motor Company scheme, it's a Ford Credit scheme and it's a trial balloon and see if it works. Frankly, as I watch the news clip, I was much more excited about the electric bike. I mean, that, I think, is a really good idea."

The Idea Has Been Around Forever

Lutz was asked whether car sales will be affected long-term if more and more people start going for ride-sharing. He replied, "Well, ultimately yes they will. But in the meantime, car companies are going to supply these vehicles. And if you look at it in the urban areas the concept of sharing cars and not owning them, look at New York, I mean, basically nobody owns a car...so the idea of sort of fractional ownership has been around forever, it's obviously going to grow."