Carsharing in North America: Current Developments and Future Potential

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Carsharing in North America Current
Developments and Future Potential

• Adam Cohen
• Susan Shaheen, Ph.D.
• Innovative Mobility Research
• University of California, Berkeley
• MUTA International Forum
• October 4th, 2007

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Overview

• About carsharing
• State-of-the-industry
• Market structure
• Growth obstacles opportunities
• Policy approaches
• Future developments

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Definition

• Carsharing Organizations Maintain a Fleet of Cars
  and Trucks in a Network of Locations.
• Allows Households and Businesses to Access Shared
  Fleet on As-Needed Basis, Generally for a Fee.
• gt Individuals Gain Benefits of Private Vehicle
  Use Without Costs and Responsibilities of
  Ownership.

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Carsharing Impacts

• Benefits include transportation, environmental,
  land-use, and social effects

Region Number of Vehicles Replaced Due to One Carsharing Vehicle Percent of Participants Who Sold Private Vehicle After Joining Carsharing Percent of Participants Who Postponed or Avoided Vehicle Purchase Due to Carsharing Percent of Vehicle Kilometers Reduced Due to Carsharing
Europe 4 to 10 15.6 to 34 23 to 26.2 28 to 45
North America 6 to 23 11 to 29 12 to 68 7.6 to 80 (Avg. of 44 across studies)
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Carsharing Worldwide (2006)

• Approximately 600 Cities
• 18 Nations on 4 Continents

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Number of Organizations
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U.S. Trends
September 2007 Estimated 185,000 Members in U.S.
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Canadian Trends
September 2007 Estimated 28,000 Members in
Canada
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Growth Dynamics
Percent Increase in Members (2003 2007)
2007 Estimated
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Member-Vehicle Ratios (2006)

• Worldwide average 201
• Higher member-vehicle ratios in the United
  States, Switzerland, and Germany
• 401 in the United States
• 361 in Switzerland
• 331 in Germany
• Reasons market diversification, business/fleet
  users, mobility insurance, multiple memberships,
  and venture capital investment

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Member-Vehicle Ratios (Contd)

• U.S. members use vehicles less frequently as
  mobility insurance.
• Canadian members depend more on carsharing.
• Canadian members pay higher member fees/buy-ins
  lower rates with little or no free miles.
• U.S. members pay fewer/lower membership fees
  high rates free miles.

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Insurance (2005)

• In 2005, high insurance rates were a key
  challenge for most N.A. carsharing organizations.
  
• This had been a substantial obstacle to
  organizations interested in the college market.

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Insurance (2007)

• Although insurance remains expensive, it is no
  longer perceived as a substantial barrier.
• Although challenges remain, many large
  organizations now offer service and target
  college markets.

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Demographic Markets (2005)
U.S.
Canada
Business 12.3
Business 3.2
Commuter 0.1
Low Income 0.4
Low Income 1.3
College 0.4
College 4.6
Neighborhood 81.7
Neighborhood 96.0
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Government Fleets (2005-2006)

• Philly CarShare and City CarShare were the first
  to demonstrate the potential of offsetting
  government fleets with carsharing vehicles.
  (Philadelphia, PA and Berkeley, CA)
• Portland has a 5-year contact with Flexcar that
  allows city government employees to use its
  service, enabling the City of Portland to reduce
  its fleet and save an estimated 30 vs. its
  historic motor pool costs.

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College Market (2007)

• Incredible growth of the college market,
  particularly in the U.S.
• In the U.S., six carsharing organizations serve
  more than 50 colleges and universities.

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SummaryFuture Developments Worldwide

• Exploratory efforts in 7 countries
• China, Ireland, Israel, Kenya, Portugal, South
  Africa, and Zambia
• New launch in New Zealand in Auckland (Sept 07)
• Expansion into developing nations
• Growth of multi-national organizations
• Increased competition

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SummaryTop Trends in North America

• Public policy debate, particularly around
  taxation and parking
• Continued Growth
• Increased competition
• Fleet Reduction Strategy
• Continued growth of the college/university market

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Acknowledgements

• North American Carsharing Organizations
• Dave Brook, Kevin McLaughlin, Adam Millard-Ball,
  Kamill Wipyewski
• Worldwide Experts
• University of California Transportation Center
  (UCTC)
• California Department of Transportation
  (Caltrans)
• Honda Motor Company

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www.innovativemobility.org