great up- and-coming cities for carsharing · carsharing is a global phenomenon with providers...

Great Up-and-Coming

Cities for Carsharing

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Carsharing is a global phenomenon with providers especially active in major cities across Europe, Asia and North America. While cities like Moscow, Beijing, Berlin, Madrid, and Vancouver currently dominate the market, there is considerable growth potential for smaller cities that are on the brink of carsharing booms. In fact, it is thanks to large, cosmopolitan cities that the stage has been set for smaller cities to finally join the carsharing revolution. In this report, we identify 5 European cities with major potential for growth in the coming months and years based on the following main success factors: city demographics and structure, municipality support and existing mobility offers. With experts predicting a worldwide decline in private vehicle ownership in the years to come and competition among providers growing fierce, targeting up-and-coming cities for carsharing is the best way to stay ahead of the game.

PREFACE

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TORINOCar ownership is very high in Italy (approximately 674 cars per 1000 inhabitants) and the modality split shows that 40% of all travel done within an Italian city is done by car.

This can explain why the Italian carsharing market is the second strongest in Europe with over 9,000 shared cars and over one million registered carsharing users across the country.

Ranked third in Italy for its economic strength and fourth largest in terms of metropolitan area, Torino is a hotspot for carsharing thanks to its

large population (just under a million residents) and high population density of nearly 7,000 inhabitants per square kilometer. While Milan and Rome hold the title for carsharing kings, Torino is rapidly gaining headway.

Why Torino?

There is a strong focus on transforming Torino into a “Smart City” with a high-tech economy, an initiative governed by Torino Smart City Foundation for Sustainable Development. It’s dense transportation network goes hand in hand with carsharing and municipal efforts to provide integrated and competitive urban transport systems will continue to reinforce this complementary relationship. Parking zones dedicated to carsharing vehicles, special access to ZTL (Zona Traffico Limitato) zones and lanes reserved for public transport show the cities ambition. Fees for these services are set are 800€ per vehicle per year (with a 50% discount for EVs

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5 Great Up-and-Coming Cities for CarsharingTorino

and Hybrid vehicles). These favorable conditions position Torino as a market with substantial growth potential.

Since there are already three large services present on the market (with more than 1100 vehicles in mixed fleets), new operators wanting to head to Torino need to make sure they build a solid offer that differentiates themselves from the competition.

A full electric fleet, for example, would not only ensure differentiation but also help capture city support and consumer demand. A carsharing fleet complemented by electric scooters or kick-scooters could cover even more use cases in this lively and touristic city.

Without a doubt, the timing for entering Torino with a multimodality approach is just perfect: Italy’s Transport Minister Danilo Toninelli just signed a decree earlier this month regarding micromobility in order to start experiments with electric scooters, segways, monowheels and hoverboards in cities across Italy.

TORINOAT A GLANCE

Population (city) 886,837

4th largest metro area in Italy

Size 130 km²

Density per km² 6,822 Age population (between 15 - 44)

33.02% or 292,790Car ownership (per 1,000 inhabitants)

673.8 which is above average by EU standards (the EU counts 587 passenger cars per 1,000 inhabitants)

CompetitionCarsharing x 3; Moped-sharing x 1

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KRAKOWPoland has become the fourth largest market for carsharing in Europe. As the country's second biggest city (population just under 800k and the metropolitan area 1.7m) and with over 400 shared cars in use today, Krakow is a major carsharing player in the CEE region.

Nevertheless, when compared to Poland’s (carsharing) capital Warsaw (1.7m inhabitants) with more than

1,600 shared cars, there is great potential for Krakow to catch up in very little time.

A big city with a good population density (2,359/km²) and substantial tourist inflow all year long (over 10m annually), Krakow also boasts quite a dynamic and young demographic who have grown up in the era of shared economy in parallel with the countries economic boom and who are excited about joining the shared mobility revolution.

Residents are, therefore, generally eager to try out new mobility solutions and the cities infrastructure is very conducive to doing so: the city is actively creating the right conditions thanks to free parking for EVs, the creation of low emission zones (currently only for delivery vehicles) and the implementation of strict access regulations.

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5 Great Up-and-Coming Cities for CarsharingKrakow

Why Krakow?

Unique privileges for EV drivers such as the aforementioned free parking but also special access to bus lanes, accelerated plans to strengthen and focus on electric and multi-modal mobility offerings (buses, cars, kick-scooters, scooters, etc.), and intelligent transportation system projects in the works all make conditions for launching a carsharing service in Krakow very favorable. Today, the city has 45 charging stations (approximately 1 per 7km) and that number will continue to grow.

Furthermore, Krakow is actively pushing for carsharing via concrete efforts to prioritize initiatives focused on redefining how people commute and travel in a sustainable way. The fact that there are only three providers currently on the market (two totaling 410 cars and a third player that just entered the first week of July) combined with favorable city conditions make the further growth for a pure carsharing scheme an achievable reality, and even more for a multimodality approach.

KRAKOWAT A GLANCE


2nd largest city in Poland

Size 326.8 km²



485.6

CompetitionCarsharing x 3; Kick-scooter x 1

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ISTANBULIstanbul’s potential lies in its significant population density (15 million people in total with over 2,700 people per km² and up to 9,000 in the city center) and, as the central economic hub of Turkey, its strong economic activity.

With tourism growing substantially in the past two decades (nearly tripling between 2000 and 2005 alone) and a major airport hosting 90 million passengers a year, Istanbul has a large volume of human traffic all year long.

Vehicle traffic is also very high: Istanbul was rated as the second most congested city in the world. This is not surprising since in 2018 drivers spent approximately 157 hours a year (6.5 days) in traffic during peak rush hour periods.

Additionally, while the total number of registered vehicles exceeded 22.9 million by the end of 2018 (58% were cars), interestingly enough figures from late 2018 also show that the number of new vehicle registrations in Turkey had actually fallen by 45.5 percent on a yearly basis.

The fact that vehicle registration is down is an indicator that inhabitants are by default becoming dependant on forms of transportation other than private vehicles to move around the city. Meanwhile, in order to further alleviate congestion, city officials are actively looking into new forms of transportation and mobility. The pressure today in Istanbul is high and new solutions are in dire need.

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5 Great Up-and-Coming Cities for CarsharingIstanbul

Why Istanbul?

In terms of congestion and population size, Istanbul is very similar to Moscow which happens to be one of the top carsharing cities on the world. Moscow takes first place as the most congested city in the world just before Istanbul, and it is this congestion combined with intense traffic conditions and increasing economic pressure that make conditions in Istanbul reminiscent of those in Moscow just before the carsharing boom.

In just a matter of years, Moscow officials brought in more than 15k shared vehicles on the road by changing legislation, raising the price of car ownership as well as parking, and inviting local players to extend their carsharing offers. Action taken by city officials was the real turning point for carsharing which allowed it to fully permeate the market. Conditions are right in Istanbul and operators need to be ready to launch as soon as the final piece of the puzzle (in this case legislation) gets put into place.

What’s more, the current carsharing market is dominated by car rental companies and is rather limited in size (800 vehicles and 3 players). Existing services (exclusively station-based) focus on rentals per hour or per day, but are not yet a real alternative to owning a car. This means that there is room for new business models: carsharing services have a golden opportunity to step into the Istanbul market with a viable alternative for

locals. Market size, the limited offer currently on the market, as well as the development of similar cities all demonstrate the favorable conditions and vast potential for this European mega metropole to become a carsharing giant.

ISTANBULAT A GLANCE

Population (city) 15.07m

2nd most congested city

Size 5,461 km²


6,912,970Car ownership (per 1,000 inhabitants)

1 out of 5 cars in Turkey (22,731,759 as of end of July 2018) are in Istanbul

CompetitionCarsharing x 3; Kick-scooter x 1

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ZAGREBWhile Zagreb's total population is below 1 million inhabitants, its population density is one of the highest in the region (4,316 people per square kilometer), and in recent years, tourism has soared making up to 20% of the countries GDP with around 19 million tourists annually in Croatia.

Furthermore, as a member of CIVITAS (a network of cities committed to

cleaner transport and sustainable mobility in Europe), the city is actively investing in cleaner and more efficient transportation solutions via concrete actions such as promoting biking, switching to biodiesel for hundreds of buses and lorries, etc.

Furthermore, the cities official 2020 development strategy regarding the renovation of the city center cites improving traffic systems as a top priority followed by reducing the use of personal passenger cars.

It is also important to mention that the federal government is supporting city initiatives by subsidizing private EVs with up to 40% of a car's value and investing in EV charging infrastructure across the country.

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5 Great Up-and-Coming Cities for CarsharingZagreb

Why Zagreb?

While still in its early stages of carsharing development, Zagreb has top resources for a carsharing service to be successful. Already in 2012, the city won the European Mobility Week Award.

Today, the city grants free parking for carsharing operators and is in favor of bringing in more operators, its population is young, and the car rental market is active.

With regard to existing carsharing operators, there is currently only one operator with 50 vehicles in the city. Good weather conditions, vast biking paths (over 200km), and high tourist inflow make Zagreb the ideal hotpot for a multimodal approach in carsharing.

Punctual hot spots for kick-scooters could complement the offer, while low labour costs keep operational costs down.

ZAGREBAT A GLANCE


98th “Quality of Living” index

Size 186 km²



313CompetitionCarsharing x 1

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LYONAs France’s second largest metropolitan region (more than 2.2m inhabitants) and third largest city (over 500k inhabitants), Lyon holds great potential as a true carsharing contender for a variety of factors.

One of the most important features of Lyon is its very high density at 10,738/km². Known for its world

class gastronomy, vibrant student life (student population of approximately 150k), and an optimal balance between economic dynamism and overall quality of life, Lyon attracts many new residents and visitors annually. Additionally, it has the second largest public transport network after Paris with 32 km of underground/subway lines, 39km of tram lines and 1,248km of bus routes.

Furthermore, the city is already quite familiar with shared services. In addition to carsharing, Lyon boasts a diversified market of mobility services from bikes to kick-scooters to autonomous driving pilots. The city is also home to several shared mobility service experiments (e.g. Navya, SunMoov) as well as mobility events (e.g. EVS32 electromobility fair).

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5 Great Up-and-Coming Cities for CarsharingLyon

Why Lyon?

There is a strong shift towards e-mobility and carsharing overall taking place in the heart of the city.

Following a major facelift in the 2nd arrondissement, the cities former industrial district which once housed wholesale market, factories, and prisons is now considered an urban development district with a strong focus on e-mobility initiatives including, for example, the world’s first driverless bus service. Additionally, 600 new charging stations have been planned for Greater Lyon by 2020 which pave the way for more electric vehicles in the city.

What’s more, the only two existing carsharing operators that are currently in Lyon run a total fleet of around 500 cars, (one with 250 EVs and the other with 250 ICEs). Given the current market and the cities demographics, offering a green, shared and full electric fleet of a considerable size

(e.g. 1k minimum) could serve the needs and interests of local families, commuters, and students. The airport with annual passengers of 10.5m should also be served. There is a whole population - whose needs are not presently being met - that has yet to be tapped into.

LYONAT A GLANCE


3rd largest city in France

Size 47.80 km²



414.1CompetitionCarsharing x 2; Kick-scooter x 3; Moped-sharing x 1

Vulog builds the technology solutions that power the most successful shared mobility services in the world. Free-floating, round-trip, peer-to-peer car-sharing, ride-hailing and hybrid services, as well as autonomous mobility pilots, are powered by its smart and flexible SaaS mobility solution.

Vulog provides the framework and business intelligence to launch within three months in full confidence. It acts as the catalyst enabling mobility operators like Wible (Kia Motors), Free2Move (Groupe PSA), Aimo (Sumitomo) and Evo (BCAA) to focus on sustained growth and profitability. The company’s unique global footprint, combined with its Artificial Intelligence proficiency, enables it to anticipate end-user demand unlike any other, while optimizing fleet balancing. Every day, it brings mobility operators a bit closer to the future business of shared self-driving cars.

Vulog was recently named in the 2019 Global Cleantech 100, an annual guide to the leading companies and themes in sustainable innovation.

Issue 07/2019

Sascha DeutschHead of [email protected]

Alexandra LougovoyDirector of Marketing & [email protected]

Will ReevesMedia [email protected]

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