Carsharing
Vehicle Rental Services That Substitute for Private Vehicle Ownership
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TDM
Encyclopedia
Victoria Transport Policy Institute
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Updated
March 7, 2007
This chapter describes
Carsharing, which refers to vehicle rental services that substitute for private
vehicle ownership.
Carsharing refers to automobile rental services intended to substitute for private vehicle ownership. It makes occasional use of a vehicle affordable, even for low-income households, while providing an incentive to minimize driving and rely on alternative travel options as much as possible. It requires these features:
· Accessible (i.e., located in or near residential neighborhoods).
· Affordable (reasonable rates, suitable for short trips).
· Convenient (vehicles are easy to check in and out at any time).
· Reliability (vehicles are usually available and have minimal mechanical failures).
Carsharing is common in
Carsharing is a middle option between having no vehicle and owning a private automobile. The table below compares personal transportation options. Carsharing offers medium convenience, and has low fixed costs and high variable costs. Private vehicle ownership offers the most convenience, has the highest fixed costs and lowest variable costs. Conventional vehicle rental businesses are not intended to substitute for private vehicle ownership. They are located at transportation terminals or commercial centers and priced by the day, and so are relatively expensive for individual short trips. They generally have high daily rates but low variable costs. Taxis are relatively convenient and have no fixed charges but the highest variable charges. Public transit has moderate to low convenience (depending on location), modest to low costs.
Table 1 Vehicle Use
Options Compared
|
Criteria |
Carsharing |
Private Ownership |
Conventional Rental |
Taxi |
Public Transit |
|
Convenience |
Medium |
High |
Varies |
High-Medium |
Medium-Low |
|
Fixed Charges |
$100/yr |
$2,000-4,000/yr |
None |
None |
$600/yr max |
|
Time Charges |
$1.50/hour |
None |
$20-40/day |
None |
None |
|
Mileage Charges |
20-40¢ |
10-15¢ |
5-10¢ |
$1.00 |
21¢ |
This table compares
convenience and price of five common travel modes.
Below are typical variable costs for a single 15-mile trip by different modes:
Carsharing $10.00
Conventional Rental $32.00
Private Car $2.00
Taxi $15.00
Transit $3.15
Other vehicle sharing strategies are possible. One proposed system would allow vehicle owners to identify when and where their vehicles are available (for example, at home or at worksites) through a matching service. Registered customers could rent the vehicle during those times, with access automatically controlled by an electronic key or pass code, and payments made from user’s to vehicle owner’s account. Travel time and distance could be recorded manually or by special meters installed in participating vehicles.
Station cars are a type of Carsharing. Station cars are rented at transit stations for travel between terminals and local destinations. This supports transit use, particularly in suburban areas where destinations are too dispersed for convenient pedestrian access. Because they are intended for short trips, station cars can employ small, alternative fuel vehicles, such as battery powered electric cars.
Some studies indicate that access to vehicles significantly increases employment and average wages for disadvantaged people entering the workforce (such as welfare-to-work programs), and so recommend vehicle ownership subsidies (Blumenberg, 2003). However, Carsharing subsidies are probably better, if possible, since they do not require large up-front costs for purchase, registration and insurance, nor do they burden lower-income households with high fixed costs which may be unnecessary and unaffordable if, for example, a worker finds a job that can be reached more easily by alternative modes.
Carsharing organizations can be cooperatives or private businesses. Cooperatives sometimes receive grants to cover start-up and administrative expenses. Some Carsharing services are established at multi-family residential cooperatives as a service for users. Station cars are often implemented by public transit agencies. Governments can provide various types of support and incentives to help develop Carsharing services, including promotion, funding, favorable parking policies, incorporating Carsharing into public organizations and development projects, and favorable tax policies (Enoch and Taylor, 2006).
Because Carsharing variable costs are 2-10 times higher than for a personal automobile, users tend to minimize their driving. Overall travel reductions depend on what portion of Carshare participants would otherwise own a personal automobile (they typically reduce their vehicle use by 50-80%) and which portion would otherwise not own an automobile (they typically increase their vehicle use by a small amount). Most studies suggest that Carsharing typical results in a net reduction in per capita driving among participants that averages 40-60%, but this varies depending on the demographics of participants and the quality of travel choices in their community (Steininger, Vogl and Zettl, 1996).
In a study of the San Francisco City CarShare program, Cervero and Tsai (2003) find that when people join, nearly 30% reduce their household vehicle ownership and two-thirds stated they avoided purchasing another car, indicating that each Carshare vehicle substitutes for seven private cars, and that the average member drives 47% fewer annual miles after joining. However, since Carsharing tends to attract motorists who already drive relatively low mileage, total travel reductions may be relatively small.
Carsharing services are usually located in urban areas where there are suitable travel options so a significant portion of residents do not need own an automobile, and sufficient regular users within convenient walking distance (typically 0.3 miles) of the vehicles. In a typical region 10-20% of residents live in neighborhoods suitable for carsharing, and perhaps 3-5% of those residents would carshare rather than own a private vehicle ownership if the service were available. People who shift from owning a private vehicle to carsharing are typically lower-annual-mileage drivers who reduce their vehicle travel about 50% (i.e., they reduce their mileage from 6,000 to 3,000 annual miles). This suggests that carsharing services can reduce total vehicle travel by 0.1% to 0.2%, although much more in suitable urban neighborhoods.
Table 2 Travel Impact Summary
|
Objective |
Rating |
Comments |
|
Reduces total traffic. |
2 |
Reduces total per capita
vehicle travel. |
|
Reduces peak period
traffic. |
2 |
Reduces total per capita
vehicle travel. |
|
Shifts peak to off-peak
periods. |
0 |
|
|
Shifts automobile travel to
alternative modes. |
2 |
Reduces total per capita
vehicle travel. |
|
Improves access, reduces
the need for travel. |
1 |
Supports higher-density,
mixed land use. |
|
Increased ridesharing. |
2 |
Encourages alternatives to
driving. |
|
Increased public transit. |
2 |
Encourages alternatives to
driving. |
|
Increased cycling. |
2 |
Encourages alternatives to
driving. |
|
Increased walking. |
2 |
Encourages alternatives to
driving. |
|
Increased Telework. |
2 |
Encourages alternatives to
driving. |
|
Reduced freight traffic. |
0 |
|
Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts.
Benefits include (Litman, 2000; Bonsall, 2002; TRB, 2005):
· Increased consumer choice
and financial savings.
· Increased affordability for
lower-income drivers who occasionally need a vehicle.
· Reduced per capita annual
mileage, resulting in reduced congestion, road and parking facility costs,
crashes, pollution and energy use.
· Reduced residential parking
requirements and support for higher density residential development.
Costs are primarily related to startup and administrative costs of Carsharing organizations.
Table 3 Benefit Summary
|
Objective |
Rating |
Comments |
|
Congestion Reduction |
2 |
Reduces total automobile
use. |
|
Road & Parking Savings |
2 |
Reduces total automobile
ownership and use. |
|
Consumer Savings |
2 |
Reduces total
transportation expenditures. |
|
Transport Choice |
3 |
Makes driving more
affordable. |
|
Road Safety |
2 |
Reduces total automobile
use. |
|
Environmental Protection |
2 |
Reduces total automobile
use. |
|
Efficient Land Use |
2 |
Supports reduced automobile
ownership. |
|
Community Livability |
2 |
Reduces total automobile
use. |
Rating from 3 (very beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts.
Carsharing is generally available to anybody who meets basic requirements, although only people who live in neighborhoods with such services are likely to use it. Carsharing services may require subsidies to become established. Carsharing tends to increase equity by improving the mobility options of people who are transportation disadvantaged, and by allowing lower-income drivers significant financial savings compared with vehicle ownership (Bonsall, 2002). It can help provide basic mobility under some circumstances.
Table 4 Equity Summary
|
Criteria |
Rating |
Comments |
|
Treats everybody equally. |
1 |
|
|
Individuals bear the costs
they impose. |
-1 |
May require subsidies to
become established. |
|
Progressive with respect to
income. |
3 |
Benefits lower-income
drivers. |
|
Benefits transportation
disadvantaged. |
1 |
Benefits some
transportation disadvantaged people. |
|
Improves basic mobility. |
1 |
Improves occasional access
to an automobile. |
Rating from 3 (very
beneficial) to –3 (very harmful). A 0 indicates no impact or mixed impacts.
Tends to be most effective and appropriate in higher-density, lower- and middle-income residential areas where there are good alternatives to driving (TRB, 2005). It can also be implemented in commercial centers and industrial parks (Reutter & Bohler, 2000). It may be particularly appropriate as part of Location Efficient Development and Car-Free Housing. Station cars are located at major transit stations, particularly in suburban areas where a car is often needed to reach destinations.
Table 5 Application Summary
|
Geographic |
Rating |
Organization |
Rating |
|
Large urban region. |
3 |
Federal government. |
1 |
|
High-density, urban. |
3 |
State/provincial
government. |
2 |
|
Medium-density,
urban/suburban. |
2 |
Regional government. |
2 |
|
Town. |
2 |
Municipal/local government. |
3 |
|
Low-density, rural. |
1 |
Business Associations/TMA. |
3 |
|
Commercial center. |
3 |
Individual business. |
3 |
|
Residential neighborhood. |
3 |
Developer. |
2 |
|
Resort/recreation area. |
3 |
Neighborhood association. |
2 |
|
|
|
Campus. |
2 |
Ratings range from 0 (not
appropriate) to 3 (very appropriate).
Improved Travel Choice
Carsharing supports and is supported by TDM strategies that increase consumers travel choices such as Transit Improvements, Ridesharing and Nonmotorized Transport, and by land use management strategies such as Transit-Oriented Development, Location Efficient Development, Car-Free Housing, Taxi Improvements and Campus Transport Management that create less automobile-dependent communities. Parking Management can allows residents who do not own an automobile to avoid paying for parking they do not need, which increases the consumer savings that result from Carsharing. Vehicle Costs describes the full costs of owning and operating an automobile, and the cost savings that can result from reduced driving. Huwer (2004) recommends integrating carsharing and public transit planning and marketing activities.
Local and regional government agencies and non-governmental organizations can help establish Carsharing organizations, and support complementary TDM strategies. Carshare programs can be incorporated into various types of developments. State and provincial governments can help overcome problems obtaining vehicle insurance. Businesses and cooperatives can provide Carsharing services.
A major barrier is the need to establish and maintain a critical mass of users (typically 30 members or more) in individual neighborhoods. Carsharing cannot develop until enough potential users in each area are familiar with the concept, understand how it can benefit them, and are willing to commit themselves to a Carshare organization. This often requires education and marketing. Carshare organizations often require seed money to become established.
DFT (2004) and TRB (2006) provide information on the development and management of carsharing organizations. Below are some best practices guidelines.
· Structure Carshare
organizations to meet the needs of the community. Larger cities can support
much larger Carsharing organizations than smaller communities.
· Implement Carsharing in
conjunction with other TDM programs that improve transportation choices. It is
particularly appropriate as part of transit encouragement efforts (Huwer,
2004).
· Find ways to minimize
administrative and overhead costs.
· Provide a variety of pricing
options to serve different types of users (infrequent, frequent, extended
trips).
· Structure rates to include
both time and mileage fees, so the organization will not lose money with either
a high-mileage trip during a short rental period, or low-mileage trip during a
long rental period.
· Develop partnerships with
organizations that are interested in reducing vehicle ownership, promoting
public transit use, or providing occasional vehicle access to a particular
group.
· Use innovative marketing.
|
Bob
and Bill often rented a boat to fish on a lake. One day they caught thirty
fish. Bob said to Bill, “Mark this spot so we can find it again tomorrow.” The
next day when they were driving to rent the boat, Bob asked, “Did you mark
that spot?” Bill
replied, “Yes, I put a big ‘X’ on the bottom of the boat.” Bob
exploded in exasperation, “You fool! What if we don’t get the same boat
today?” |
The Transportation Research Board report, “Car-Sharing: Where and How It Succeeds” (TRB, 2005) includes many examples of Carsharing programs.
The
Carsharing Network (www.carsharing.net)
identifies several established Carsharing organizations in North America and
Table 6 Carsharing
Organizations
|
Organization |