Carsharing in North America: Current Trends and Future Prospects
This report explores the evolution of carsharing in North America, highlighting its growing impact across various sectors, including environmental and social benefits. It presents an overview of the state of the industry, market structure, and identifies key growth obstacles and opportunities. As of 2007, approximately 185,000 members in the U.S. and 28,000 in Canada participate in carsharing. The study also examines demographic usage trends, insurance challenges, and the promising future developments in urban carsharing initiatives.
Carsharing in North America: Current Trends and Future Prospects
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Presentation Transcript
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
Overview • About carsharing • State-of-the-industry • Market structure • Growth obstacles & opportunities • Policy approaches • Future developments Current Developments & Future Potential
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. => Individuals Gain Benefits of Private Vehicle Use Without Costs and Responsibilities of Ownership. Current Developments & Future Potential
Carsharing Impacts Benefits include transportation, environmental, land-use, and social effects Current Developments & Future Potential
Carsharing Worldwide (2006) • Approximately 600 Cities • 18 Nations on 4 Continents Current Developments & Future Potential
Number of Organizations Current Developments & Future Potential
U.S. Trends *September 2007: Estimated 185,000 Members in U.S. Current Developments & Future Potential
Canadian Trends *September 2007: Estimated 28,000 Members in Canada Current Developments & Future Potential
Growth Dynamics Percent Increase in Members (2003 –2007*) *2007 Estimated Current Developments & Future Potential
Member-Vehicle Ratios (2006) • Worldwide average 20:1 • Higher member-vehicle ratios in the United States, Switzerland, and Germany • 40:1 in the United States • 36:1 in Switzerland • 33:1 in Germany • Reasons: market diversification, business/fleet users, mobility insurance, multiple memberships, and venture capital investment Current Developments & Future Potential
Member-Vehicle Ratios (Cont’d) • 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. Current Developments & Future Potential
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. Current Developments & Future Potential
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. Current Developments & Future Potential
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% Current Developments & Future Potential
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. Current Developments & Future Potential
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. Current Developments & Future Potential
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 Current Developments & Future Potential
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 Current Developments & Future Potential
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 Acknowledgements Current Developments & Future Potential
www.innovativemobility.org Current Developments & Future Potential