Click for next page ( 29


The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement



Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 28
Car-Sharing: Where and How It Succeeds 2.4Relationship to Other Modes Car-sharing has sometimes been referred to as the "missing link" in the pack- age of alternatives to the private automobile (for example, Britton, 1999a). In other words, transit, taxis, cycling and walking can often meet most mobility needs, but there may still be other trips for which a private car is required. Car-sharing, under this hypothesis, can fulfill these needs and allow users to do without a private car, or a second car (see Chapter 5). Exhibit 2-8 shows how car-sharing relates to other transportation modes. It provides options for mid-distance trips where flexibility is required for example, in carrying packages, or reaching destinations that may not be accessible by public transportation. The remainder of this section discusses the differences between car-sharing and the two closest substitutes rental cars and taxis. In some cases, the main difference between the three modes relates to the cost of a trip. Since most car-sharing operators charge by hours reserved, and in some cases distance driven as well (see Pricing in Section 2.5), car-sharing is most cost-effective for intermediate length trips. For longer trips, rental cars are usually cheaper, since they tend to be priced by the day and offer unlimited mileage. For short distance but long duration trips for example, where the car-sharing vehicle must be parked, with charges accruing, at the destination for a long period taxis tend to be cheaper. Exhibit 2-9 shows cost comparisons based 'SFFNPEBMDIPJDF GSFFNPEBM on San Francisco taxi fares, rental car rates and car-sharing tariffs. DIPJDF JNQBDUT Exhibit 2-8 Relationship to Other Modes $BS4IBSJOHSFEVDFTUIFDBSUPJUTSPMF OFX $B S4IBSJOH $BS 3FOUBM UFDIOPMPHZ 5BYJ $BS4IBSJOH GMFYJCMJUZOFFEFE JO UFSNPEBM TFSWJDFT #JLF $BS4 IBSJ OH 1V C MJD 5 SBO TQ PSUBU JP O JO-POEPO %J TU B O DF P G U SBW FM Source: Schwartz, Joachim. Presentation at Car-Free Cities Working Group Seminar, London, 1999. Page 2-15

OCR for page 28
Chapter 2 State of the Practice Exhibit 2-9 Cost Comparisons for Rental Cars, Taxis and Car-Sharing Taxi Rental Car CarShare Taxi Rental Car CarShare $80 $80 $70 1-Hour 1-Hour $70 4-Hour Total Cost $60 Lease Lease $60 Lease Total Cost $50 $50 $40 $40 $30 $30 $20 $20 $10 $10 CarShare Taxi CarShare $- $- 0 20 40 60 0 20 40 60 Distance (Miles, Round Trip) Distance (Miles, Round Trip) Taxi Rental Car CarShare Taxi Rental Car CarShare $80 $80 $70 7-Hour $70 10-Hour $60 Lease Total Costs $60 Lease Total Cost $50 $50 $40 $40 $30 $30 $20 $20 $10 $10 Taxi CarShare Taxi CS Rental Car $- $- 0 20 40 60 0 20 40 60 Distance (Miles, Round Trip) Dista nce (Mile s, Round Trip) Source: Cervero & Tsai (2003). Figure 6. Comparative Costs of City CarShare Leases Versus Costs for Other Rental Cars For-Hire Carriers: Scenarios for Leases of 1-, 4-, 7-, and 10-Hour Durations Over Distance Ranges Three key differences distinguish car-sharing from traditional car rentals, its closest equivalent: short-term rentals; a decentralized, self-accessing network of vehicles; and the bundling of gasoline and insurance into rates. In addition, the primary purpose of car-sharing 14 is often to provide an alter- native to vehicle ownership. In contrast, most rental firms have centralized facilities, particularly in air- ports and downtowns, require a staff member to check the vehicle out, and offer minimum rental increments of 24 hours. As a result, rental firms tend to cater far more to business travelers and other visitors, and people who need a replacement car, rather than occasional, short-duration trips by local residents the core market for car-sharing operators. Page September 2005 2-16

OCR for page 28
Car-Sharing: Where and How It Succeeds Indeed, most car-sharing operators have collaborative arrangements with local rental car firms, encouraging members to use rental cars for longer trips. City CarShare members in San Francisco receive discounts with Enterprise, for example, while AutoShare members in Toronto receive discounts with four rental firms, including Budget and Enterprise. In the longer term, however, there may be greater convergence between the rental car and car-sharing models, and many examples point this way already. At Stanford University, for example, Enterprise now offers hourly rentals (see Section 5.9, Universities). In Europe, car rental firms often operate car-sharing programs themselves. Avis runs one in London, while Hertz started its "Delebilen" service in Co- penhagen in 1998. In Austria, Denzeldrive provides both car-sharing and rental cars using a common fleet of 750 vehicles. According to Bergmaier et al. (2004), Denzeldrive is blurring the two concepts; the main differences are in the pricing structure, minimum duration, and the use of the membership joining fee as a barrier to infrequent renters using the cheaper car-sharing service instead of rental cars. In addition, a new rental car business model by EasyRentACar in Europe may pose a direct challenge to car-sharing operators, through offering short-term reservations, unstaffed pick-up locations, and a demand-based pricing system. While this approach was driven by cost cutting concerns, the end product bears many similarities to car-sharing. (Meaton, Starkey & Williams, 2003) The reverse is also true to some extent, as car-sharing operators offer daily and weekly rates that in many ways compete with the rental car offering. Communauto in Quebec, for example, offers a "network rate" with a flat charge per day and 300 km of inclusive mileage, and a "workweek rate", in addition to its standard hourly rates. These rates allow the operator to maximize utilization, and appeal to different market segments such as freelance workers who need a car every day, but only for a few weeks at a time. Depending on availability, these daily and weekly rentals are fulfilled with Communauto cars, or with an equivalent vehicle from a rental company partner. (Robert, 2000) Page 2-17