Gen Z and Mobility: Practicality Before Sustainability
Gen Z is not only the generation of Fridays for Future, but also the generation of pragmatism. Perhaps it is not only disillusionment; a significant reduction in spending capacity relative to disposable income is just as relevant, especially in Europe. As a result, today’s young people choose how they move based on efficiency, safety, and cost. While it is true that sustainability is recognized as a value, it is also true that it does not always prevail in guiding decisions: when push comes to shove, ease of use, certainty, security, and above all cost become top priorities.
This is revealed in SDA Bocconi’s latest Mobius Lab study, which studies Gen Z’s urban mobility behaviors globally in comparison with those of Millennials. The research, conducted using a mixed methodology, is based on more than 100 in-depth interviews and a survey of 6,605 respondents in large urban centers in France, Germany, the UK, China and India. The results show that although young people recognize the importance of sustainability, what really influences their choices are exquisitely functional aspects: simplicity, immediate availability, cost, and reduced uncertainty.
And when it comes to more sustainable vehicles, the choice cannot go without concrete incentives, both in purchase and use. Sustainability is more a responsibility of vehicle manufacturers and service providers than a sacrifice that can be borne by Gen Z. Even if it is recognized as a value, it cannot compensate for a reduction in other aspects including the cost of mobility above all.
“We cannot assume that Gen Z is adopting mobility solutions solely for ethical reasons related to sustainability,” says Stefania Borghini, professor of marketing at Bocconi and coordinator of the study. “What can really drive them to adopt new, more sustainable forms of transportation is a mix of efficiency, simplicity and tangible incentives.”
Sustainability? Not enough
One of the study’s findings is that Gen Z does not see sustainability as a primary motivation in explaining their mobility choices. In Europe, 70 percent of young people recognize the importance of sustainability, but prioritize cost, safety, speed, certainty. In China, sustainability is not considered, yet the adoption of electric or plug-in vehicles is more widespread than in Europe thanks to government incentives to reduce the price of these solutions making them competitive with conventionally powered vehicles.
“The adoption of electric vehicles is not an ideological issue, but a practical one,” continues Laura Colm, Associate Professor of Practice of Marketing and Sales in SDA Bocconi. “In China, for example, the spread of electric vehicles stems from government incentives such as the elimination of ownership taxes and reduced operating and maintenance costs, in India from government incentives but also a choice by manufacturers to focus on mid-range and low-end cars with penetration pricing strategies. Last but not least, the choice to subsidize private charging points, both in residential buildings and workplaces. In Europe, the adoption of electric and plug-in cars is slower due to higher prices (despite the existence of state and local incentives) because of a supply limited mainly to premium models, and the perception of a still insufficient charging network.”
The numbers confirm this: while in China 38.3% of Gen Z owns a Plug-In car and 12.6% an electric one, in India the proportion is reversed, with 7.4% Plug-In and 27.3% full electric. Among the European countries included in the survey, in the UK 13.1 percent of Gen Z in large urban centers own a Plug-In car and 26.3 percent an electric car; in Germany Plug-In drops to 3.1 percent and electric is 11.2 percent; finally, in France among Gen Z in large urban centers 10 percent drive a Plug-In car and an equal share of 10 percent drive an electric car.
Gen Z between car sharing and public transportation
Another key point of the research concerns geographic differences in the use of car sharing and public transportation. In Europe, Gen Z is more inclined to use car sharing than Millennials, but Germany is an exception: here Millennials outnumber Gen Z in adopting the practice. The main reasons holding back car sharing in Europe are the cost of the service (the first barrier to use for respondents) and uncertainty about vehicle availability (the second barrier). A decisive factor in the use of car sharing for private mobility is income: the higher it is, the greater the use of this mobility solution.
In China, car sharing remains an occasional phenomenon rather than an established practice because of the cultural emphasis on car ownership. In contrast, in India, there is a strong preference for sharing electric scooters rather than cars.
After the car, public transport remains the most popular choice in all regions studied for urban mobility, albeit with some differences in motivations and barriers to their use. in Europe, the main concerns are nighttime safety and the need to reduce the number of transfers between vehicles. In East Asia, public transport is valued for speed and efficiency, while in India suburban options are often lacking. “For those who can afford it, the car remains the main choice for urban travel,” points out Armando Cirrincione, professor of marketing at Bocconi University and fellow at Mobius Lab. “Its marginal cost (that is, without considering costs already incurred by the mere fact of owning a car) is lower than that of public transport, especially in the case of electric or plug-in vehicles that offer incentives such as the elimination of access costs to urban areas or parking costs and that can be recharged with domestic solutions, perhaps powered by photovoltaic panels. In the future then, if the incentives stay, it is likely that we will see growth in private urban traffic due to the spread of full electric or Plug-In vehicles.”
Future mobility: innovation or improvement of the existing?
Confirming the pragmatic nature of this generation, Gen Z’s vision of future mobility is not dominated by fantasies of ultra-technological transportation, but rather by improving existing solutions. 58 percent of respondents believe that innovation should focus on upgrading existing infrastructure, rather than on new transportation models.
“Innovation cannot be an end in itself,” concludes Fabrizio Zerbini, director of Mobius Lab. “Gen Z is not looking for technology for technology’s sake, but for a concrete improvement in the quality of urban mobility, with solutions that meet their real needs: practicality, safety and convenience.”
Among the most popular ideas for the future of mobility, Gen Z envisions a vertically developed mobility, with cities where different modes of transportation are better integrated. Escape from the city is also a key factor, with 44 percent of Gen Z giving top value to leisure destinations, with a strong appeal by European and Western destinations.
With this data, it seems clear that anyone who wants to design the mobility of the future will have to move beyond simple sustainability storytelling and focus on what really matters to Gen Z: cost, ease of use, certainty and safety.
