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Car-Sharing: Where and How It Succeeds (2005)

Chapter: Executive Summary

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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
×
Page 4
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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
×
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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
×
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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
×
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Suggested Citation:"Executive Summary." National Academies of Sciences, Engineering, and Medicine. 2005. Car-Sharing: Where and How It Succeeds. Washington, DC: The National Academies Press. doi: 10.17226/13559.
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Page ES-1 E xecutive S um m ary What is Car-Sharing? Car-sharing is a service that provides members with access to a fleet of vehicles on an hourly basis. Members reserve a car online or by phone, walk to the nearest parking space, open the doors with an electronic key card, and drive off. They are billed at the end of the month for time and/or mileage. At the home, car-sharing can substitute for car ownership. At the workplace, it provides access to a vehicle for business use and personal errands dur- ing the day, allowing employees to avoid driving to work. By De- cember 2004, operators claimed TCRP RePoRT 108 CaR-ShaRing WheRe and hoW iT SuCCeedS about This Report One of the newest additions to the transportation toolbox, car-sharing has the potential to change people’s relationship to the car in dense, urban communities. Car-sharing is usually run by independent operators, but can help achieve many of the goals of partner organizations such as developers, businesses, local governments, transit agencies and universities. In turn, these partners are essential to car-sharing’s success. This report focuses on what partner organizations can do, the benefits that they can expect to realize, and where car-sharing can succeed. The full report is available at www.trb.org. North American Car-Sharing Regions (2005) more than 60,000 members in the United States and nearly 11,000 in Canada. Despite rapid growth, however, car-sharing is still a niche product, accounting for just 0.03% of the US urban population and licensed drivers. 0 15,000 30,000 45,000 60,000 75,000 1998 1999 2000 2001 2002 2003 2004 M em be rs 0 200 400 600 800 1000 Vehicles Members Vehicles Source: Shaheen, Schwartz & Wipyewski (2004); Susan Shaheen, unpublished data. Note that 2004 data are for December, while 1998-2003 figures reflect June data points, meaning the chart overstates the rate of increase from 2003 to 2004. US Car-Sharing Growth North American Car-Sharing Regions (June 2005) San Franciscoj j Seattle j Portland Bostonj j Washington DC New York/New Jerseyjj Philadelphia j jLos Angeles San Diego j Boulderj Aspen j Madisonj Chicago j Rutledge jjVictoriaVancouverj Nelson jCalgary j j Edmonton Quebec City jj Sherbrooke jj MontrealOttawa/Gatineau Kingstonjj TorontoKitchener/Guelph j Eugene j Ann Arbor jChapel Hill j Minneapolis/St. Paul jDetroit j j Existing Planned 2005 j Santa Barbara

September 2005 Page ES-2 C ar -S ha ri ng — W he re a nd H ow it S uc ce ed s Car-Sharing Operators Car-sharing organizations can be for-profit companies, cooperatives, or non-profits with an environmental and social change mission. In Aspen, Colorado car-sharing is municipally run. The residential market was the initial fo- cus for most car-sharing operators. However, some have now found that business users are the main source of growth. Demographic Markets: Who Joins? A high level of education is a defining char- acteristic of car-sharing members in North America. Survey results for this study found that 35% of members have a Bachelor’s degree, and a further 48% some post-graduate work or an advanced degree. They tend to be in their 30s or 40s and have middle- to higher-incomes. Almost all members are concerned about en- vironmental and social issues, and are more concerned with what a vehicle can be used for, rather than how it looks or its brand name. Car-Sharing and Other Transportation Modes Car-sharing is sometimes called the “miss- ing link” in the package of alternatives to the private automobile. Members can use transit, cycling and walking for most of their daily trips, but have access to a car when required. Car-sharing also complements taxis, which are better suited to one-way trips and provide an option for those who cannot drive, and rental cars which are cheaper for longer journeys. uses of Car-Sharing Members use car-sharing for a range of trips, but rarely for the daily commute to work. Car-sharing is used judiciously; the service is most often used when members have things to carry, need a car to get to their destination, or have multiple stops to make. The median number of trips per month is just two. Recreation 16% Commute 2%Other 12% Personal business 25% Other shopping 17% Grocery shopping 16% Work- related 12% Trip Purpose Variable Low Growth High Growth Demographics % 1-person households 30% 40%-50% Commute Mode Share % drive alone to work 55% 35%-40% % walk to work 5% 15%-20% Vehicle Ownership % households with no vehicle 10%-15% 35%-40% % households with 0 or 1 vehicle 60% 70-80% Neighborhood Characteristics Housing units per acre 5 5 Note: For most variables, the values are the suggested minimums that are needed for a viable car-sharing service in a given neighbor- hood. For the "% drive alone to work" variable, the values are the suggested maximums. Guidelines for Where Car-Sharing Succeeds

Page ES-3 E xecutive S um m ary Car-sharing is a complement to other alterna- tives to the private automobile. It only makes sense as part of a wider transportation package, in neighborhoods where transit, walking and cycling are viable options. Car-sharing is not a panacea – it cannot “paper over the cracks” and compensate for auto-oriented land use policies. Car-sharing is overwhelmingly concentrated in metropolitan cores – around 95% of members are found in these settings. High density, a good pedestrian environment, a mix of uses and park- ing pressures all help car-sharing to succeed. Most important appears to be the ability to live without a car – or with just one vehicle. Low vehicle ownership rates are the best predictor of a strong market for car-sharing. University campuses also provide an important market niche. The picture in smaller communities is mixed. While car-sharing can be found in places such as Aspen, Colorado and Whistler, British Co- lumbia, operators in Halifax, Nova Scotia and Traverse City, Michigan have been forced to close. Operators have also had limited success with expanding to suburban markets near Seattle and San Francisco. The keys to making car-sharing succeed in less urban areas appear to be community support, a strong champion, and volunteer involvement by members. Vehicle ownership By providing access to a vehicle for occasional trips, car-sharing enables households to give up their car or a second or third vehicle. On average, about 20% of car-sharing members do this, with even more forgoing the purchase of a new car. Thus, at least five private vehicles are replaced by each shared car – and many studies, including research for this report, show substantially greater benefits. In turn, reduced vehicle ownership can lead to increased parking availability and less need for new parking. The wider benefits of reduced parking include cost savings; release of land for development; and less stormwater runoff. Vehicle Travel Most studies suggest that, on balance, car-shar- ing reduces vehicle travel – particularly once a program matures and the “novelty” wears off. geographic Markets: Where Car-Sharing Works The impacts of Car-Sharing

September 2005 Page ES-4 C ar -S ha ri ng — W he re a nd H ow it S uc ce ed s The precise impacts can be hard to measure, however, because of two competing impacts: • Reduced Travel. Car-sharing changes the entire economics of driving, by convert- ing fixed costs into usage fees. When households own a car, each additional trip costs very little, since the investment in car payments, insurance and taxes has already been made. With car-sharing, however, costs are directly proportional to the amount that members drive – provid- ing a strong financial incentive to drive less. When car-sharing is available at the workplace, meanwhile, members can com- mute by transit, carpool or on foot, since a car will be available for business meetings and errands during the day. • Induced Travel. Some car-sharing mem- bers did not previously own a car, and will use the service to make new vehicle trips. In many respects, this is a benefit, since car-sharing is improving mobil- ity. However, these new trips can offset reduced travel by members who sell cars. other impacts The other impacts of car-sharing include: • Lower emissions. Car-sharing reduces emissions both through cutting vehicle travel, and through the use of newer, fuel- efficient vehicles – in many cases hybrids. • Increased transit ridership. By reduc- ing vehicle travel, car-sharing shifts some trips to transit. In addition, nearly 20% of car-sharing trips are accessed by transit – another source of new ridership. Most of these access trips are made at off-peak times. • Cost savings. Many households and busi- nesses join a car-sharing program because they can save money on transportation. • Greater mobility. Car-sharing allows people without a car to get to new places. Demonstrations are also underway in San Francisco and Seattle to evaluate the mo- bility benefits to low-income households. Firm Data More Speculative Individual/ Business Cost savings Greater mobility Convenience Transportation System Lower parking demand More fuel-efficient vehicles Less vehicle travel More transit ridership Environment/ Community Lower emissions Cost savings for development Less congestion Better urban design More compact development Less energy/resources for vehicle manufacturing La ye re d Be ne fit s

Page ES-5 E xecutive S um m ary Who Initiates Car-Sharing Partnerships? Organization Initiating Partnership % Car-Sharing Operator 41% Staff at Partner Organization 30% Staff at Another Organization 11% Community/Advocacy Group 3% Other 8% Don’t Know 8% Total 100% Source: Web-based survey for this project Partner organizations are indispensable to the continued growth and viability of car-sharing. Their help can be as basic as financial assistance and marketing. It can be as concrete as provid- ing parking spaces for car-sharers. And it can be as advanced as integrating policies requiring car-sharing into planning documents, or even codifying policies into tax laws. Partner goals Partners hope to achieve multiple goals through car-sharing. Local governments are interested in environmental and social benefits, such as reduced vehicle ownership and travel, and mo- bility for low-income households. Transit agen- cies want to increase ridership and revenue. Developers see the opportunity to provide an amenity for their tenants, and to gain speedier project approvals. Employers and universities use car-sharing as an employee benefit, and as a way to reduce auto commuting and parking demand. Who are the Partners? Partner organizations are composed of any entity that helps car-sharing get a stronghold in communities. This study examined the role of five types of partners in detail: • Local governments • Transit agencies • Developers • Employers and businesses • Universities There are many other types of partners, including grassroots community groups; Transportation Management Associations and other rideshare agencies; and federal and State agencies. Types of Support Marketing. Partners can assist car-sharing operators by giving them access to customers. For example, an employer can send e-mails and provide mailing lists as a communication channel for the operator. If the partner has a Transportation Demand Management program, car-sharing can be inserted into the overall marketing activities—outreach, promotions and transportation fairs. Administration. Partners can commit admin- istrative resources toward car-sharing, such as processing grants, lending office space, and providing an interface with other departments or agencies. Funding. As well as in-kind contributions, partners sometimes provide direct financial assistance to help with start-up costs or special programs such as car-sharing for low-income neighborhoods. Partners can also help apply for external grants. The Role of Partners

September 2005 Page ES-6 C ar -S ha ri ng — W he re a nd H ow it S uc ce ed s Portland, Oregon installs high-profile orange poles to promote the on- street car-sharing program. The City of Philadelphia is replacing many fleet vehicles with car- sharing and expects to save more than $9 million over five years. Parking. Making reserved parking spaces avail- able for the car-sharing vehicles is one of the most useful actions a partner can take. Parking can be on-street or off-street, but needs to be convenient and visible. Transit Integration. Car-sharing is a comple- mentary mode to transit. Besides permitting car-share operators to use parking at their sta- tions, transit operators can take a more proac- tive approach by integrating car-sharing with their fare systems. For example, car-sharing membership fees might be waived for transit pass holders, or a transit smartcard might be used to gain access to car-sharing vehicles. Memberships. Partners can indirectly provide funding to car-sharing operators by becoming members. In this way, they help sustain the car-sharing program while also demonstrat- ing leadership in promoting car-sharing and lending credibility to the idea. Some partners, such as the City of Philadelphia, have gone a step further by replacing fleet vehicles with a car-sharing program. Partner organizations such as BART, a rail system in the San Francisco Bay Area, provide valuable marketing assistance, helping car-sharing to grow. Ph ot o: P hi lly Ca rS ha re .

Page ES-7 E xecutive S um m ary As with any new concept, car-sharing faces chal- lenges in getting a stronghold as an alternative transportation mode. One of the most funda- mental barriers relates to finding a partner; car-sharing does not have a natural “home” in most agencies. What’s more, most partner organizations do not yet have a good understanding of how car-sharing works, and how it can help them achieve their goals. They may have unrealistic expectations about the types of neighborhoods where car-sharing is economically viable, and be skeptical about its benefits. The public and businesses, meanwhile, often fail to appreciate the true costs of automobile ownership and use. This failure makes selling car-sharing as a cost-saving measure difficult. Other barriers include a lack of start-up fund- ing; regulatory obstacles such as zoning and business licensing laws; the need to find visible, affordable well-located parking; and land-use patterns that favor the private automobile. It can also be difficult to serve low-income popula- tions, since they are unlikely to be a profitable market for commercial operators. This study identified five key factors for success that support the development of car-sharing: • Identifying a champion for car-sharing, such as an elected official or high-placed staff member who recognizes the benefits of car-sharing and works to promote it • Adopting supportive policies and regulations, such as zoning incentives and inclusion of car-sharing in environ- mental, transportation and corporate sustainability plans • Providing funds to help car-sharing pro- grams become established • Implementing supportive actions such as providing marketing, parking, and inte- gration with transit • Selecting the right neighborhoods that have the density, walkability and transit service to help car-sharing thrive Most barriers are local, but some issues may be best tackled on a national level. Many op- erators have expressed interest in a national car-sharing association that could help promote understanding; advocate for regulatory reform; and provide a forum for networking and data sharing. Barriers and Factors for Success Most partnerships with car-sharing operators are informal in nature. In some cases, however, it may be appropriate to issue a Request for Propos- als (RFP), particularly when a significant amount of financial or in-kind support is offered. Contracts and Memoranda of Understanding are often used in formalizing an understanding. For example, where partners provide parking, a simple, boilerplate document can address is- sues such as liability, the number and location of spaces involved, and the level of any fees. The Mechanics of Partnerships Until now, car-sharing programs have been sub- ject to relatively little evaluation and monitor- ing. The main performance measure for opera- tors and their partners has been the “breath test” – is the program still alive and breathing? As car-sharing matures, however, evaluation will become more important. Performance data can help solidify support for car-sharing within a partner organization and ensure that public money is used responsibly. Evaluation may also be a requirement if some sources of federal

September 2005 Page ES-8 C ar -S ha ri ng — W he re a nd H ow it S uc ce ed s funding are used. The depth of an evaluation will naturally vary with the extent of the car- sharing program, and the amount of support ] Does the community have neighborhoods with the right characteristics to make car-sharing viable? Are there neighborhoods with low auto ownership and use, where walking and transit are viable options? ] Are there established Transportation Demand Management programs in which car-sharing can be inserted; are there other commute trip reduction strategies that can recruit business members? ] What is the depth of interest in car-sharing from different types of partners? ] Is there a high-level champion with a strong commitment to car-sharing? ] Are there community groups that have shown interest in starting a car-sharing program and have the capacity to get a project off the ground? ] What incentives can partners provide for a commercial operator, such as start-up funding, marketing, zoning changes and parking provision? ] Is there an anchor member, such as a city or business that wishes to replace its vehicle fleet with car-sharing and can provide guaranteed baseline usage? Car-Sharing Checklist provided by a partner. The more generous a partner in providing support, the more evalu- ation and monitoring is warranted. Bringing Car-Sharing to a new Community There are a number of ways in which car-shar- ing can be established: • Business venture. In a few cities, car-shar- ing may be viable as a profit-making busi- ness venture. • Public-private partnership. Partners will usually need to provide financial or other incentives to entice operators. • Grassroots effort. The feasibility of this option depends on the interest and capac- ity of local groups, and the amount of partner support. • Municipally run. This option requires a strong, ongoing commitment from local government. Most communities, then, will need to be proac- tive if they want car-sharing as a local transpor- tation option. Regardless of the organizational arrangement, partners can help catalyze car- sharing through: • Documenting the characteristics of neigh- borhoods that could support car-sharing • Conducting preliminary market research or a feasibility study • Providing outreach to obtain institutional and community buy-in • Providing financial or in-kind support • Integrating car-sharing with wider neigh- borhood and transportation plans • Addressing other key barriers, such as licensing and zoning Car-sharing is fundamentally a niche product that only makes sense in certain markets. The checklist below provides a simple assessment of whether a community is ready for car-sharing. The more criteria that are met, the greater the prospects for success. However, the potential extent of car-sharing has yet to be fully explored, and its ultimate reach will only be determined through experimentation and trial and error.

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TRB’s Transit Cooperative Research Program (TCRP) Report 108: Car-Sharing--Where and How It Succeeds examines development and implementation of car-sharing services. Issues addressed in the report include the roles of car-sharing in enhancing mobility as part of the transportation system; the characteristics of car-sharing members and neighborhoods where car-sharing has been established; and the environmental, economic, and social impacts of car-sharing. The report also focuses on car-sharing promotional efforts, barriers to car-sharing and ways to mitigate these barriers, and procurement methods and evaluation techniques for achieving car-sharing goals.

Appendices A through E of TCRP Report 108 are included with the report on CRP-CD-60 that is packaged with the report. The appendices include an annotated bibliography; a list of partner organizations surveyed and interviewed; survey instruments; and sample documents such as Requests for Proposals (RFPs) and zoning ordinances related to car-sharing. Appendix E was designed as a resource for introducing organizations to car-sharing and encouraging partnerships to initiate car-sharing programs.

Links to the download site for the CRP-CD-60 and to instructions on burning an .ISO CD-ROM are below.

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