carsharing in north america: current developments and future potential adam cohen susan shaheen,...

Carsharing in North America: Current Developments and Future Potential

Adam CohenSusan Shaheen, Ph.D.

Innovative Mobility ResearchUniversity of California, Berkeley

MUTA International ForumOctober 4th, 2007

4 OCT 2007 Current Developments & Future Potential

2

Overview

• About carsharingAbout carsharing

• State-of-the-industryState-of-the-industry

• Market structureMarket structure

• Growth obstacles & Growth obstacles & opportunitiesopportunities

• Policy approachesPolicy approaches

• Future developmentsFuture developments


3

Definition

• Carsharing Organizations Maintain a Fleet of Carsharing Organizations Maintain a Fleet of Cars and Trucks in a Network of Locations. Cars and Trucks in a Network of Locations.

• Allows Households and Businesses to Allows Households and Businesses to Access Shared Fleet on As-Needed Basis, Access Shared Fleet on As-Needed Basis, Generally for a Fee.Generally for a Fee.

=> Individuals Gain Benefits of Private Vehicle => Individuals Gain Benefits of Private Vehicle Use Without Costs and Responsibilities of Use Without Costs and Responsibilities of Ownership.Ownership.


4

Carsharing Impacts

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

RegionRegion Number of Number of Vehicles Vehicles Replaced Replaced Due to One Due to One Carsharing Carsharing VehicleVehicle

Percent of Percent of Participants Participants Who Sold Who Sold Private Private Vehicle After Vehicle After Joining Joining CarsharingCarsharing

Percent of Percent of Participants Participants Who Postponed Who Postponed or Avoided or Avoided Vehicle Vehicle Purchase Due Purchase Due to Carsharingto Carsharing

Percent of Percent of Vehicle Vehicle Kilometers Kilometers Reduced Reduced Due to Due to CarsharingCarsharing

EuropeEurope 4 to 10 4 to 10 15.6 to 34%15.6 to 34% 23 to 26.2%23 to 26.2% 28 to 45%28 to 45%

North North AmericaAmerica

6 to 236 to 23 11 to 29%11 to 29% 12 to 68%12 to 68% 7.6 to 80% 7.6 to 80% (Avg. of 44% (Avg. of 44% across across studies)studies)


5

Carsharing Worldwide (2006)

• Approximately 600 Cities• 18 Nations on 4 Continents


6

Number of Organizations18 18

14 14

15

14

17

6

4

2

-2-3

-1-1 -1-2 -2-2

1314

21

109

12 11 11

8

55

32

-1-1

-4

0

4

8

12

16

20

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

U.S.

Canada

Closures


7

U.S. Trends*September 2007: Estimated 185,000 Members in U.S.


8

Canadian Trends*September 2007: Estimated 28,000 Members in Canada


9

Growth Dynamics

0%

50%

100%

150%

200%

2003-2005 2005-2007*

Canada

US

Percent Increase in Members (2003 –2007*)

*2007 Estimated


10

Member-Vehicle Ratios (2006)• Worldwide average 20:1Worldwide average 20:1

• Higher member-vehicle ratios in the United Higher member-vehicle ratios in the United States, Switzerland, and Germany States, Switzerland, and Germany

• 40:1 in the United States40:1 in the United States

• 36:1 in Switzerland36:1 in Switzerland

• 33:1 in Germany33:1 in Germany

• Reasons: market diversification, business/fleet Reasons: market diversification, business/fleet users, mobility insurance, multiple users, mobility insurance, multiple memberships, and venture capital investmentmemberships, and venture capital investment


11

North American Member Vehicle Ratios

6.9

26.6

36.8

57.7

64.1

39.9

19.2

13.4 16.217.6

16.3 19.2 19.9 20.117.116.414.6

14.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

1998 1999 2000 2001 2002 2003 2004 2005 2006

Year

Mem

ber

s P

er V

ehic

le

US

Canada


12

Member-Vehicle Ratios (Cont’d)

• U.S. members use vehicles less frequently U.S. members use vehicles less frequently & as mobility insurance. & as mobility insurance.

• Canadian members depend more on Canadian members depend more on carsharing.carsharing.

• Canadian members pay higher member Canadian members pay higher member fees/buy-ins & lower rates with little or no fees/buy-ins & lower rates with little or no free miles.free miles.

• U.S. members pay fewer/lower membership U.S. members pay fewer/lower membership fees & high rates free miles.fees & high rates free miles.


13

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.


14

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.


15

Demographic Markets (2005)

U.S. Canada

Neighborhood81.7%

Commuter0.1%

Low Income1.3%

Business12.3%

College4.6%

Low Income0.4%

Business3.2%

College0.4%

Neighborhood96.0%


16

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.


17

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.


18

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


19

Summary:Top 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


20

Acknowledgements

• North American Carsharing OrganizationsNorth American Carsharing Organizations

• Dave Brook, Kevin McLaughlin, Adam Millard-Ball, Dave Brook, Kevin McLaughlin, Adam Millard-Ball, Kamill WipyewskiKamill Wipyewski

• Worldwide ExpertsWorldwide Experts

• University of California Transportation Center (UCTC)University of California Transportation Center (UCTC)

• California Department of Transportation (Caltrans)California Department of Transportation (Caltrans)

• Honda Motor CompanyHonda Motor Company


21

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carsharing in north america: current developments and future potential adam cohen susan shaheen,...

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