Car Sharing Industry Growth & Impact in North America
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1 Car Sharing Industry Growth & Impact in North America May Conference on Future Urban Transport Berkeley, CA Rick Hutchinson City CarShare Source: Dave Brooks, 2008
2 Car Sharing Definition Overview Car sharing is a sustainable transportation service that provides communities significant social and environmental benefits by reducing the use of vehicles and car ownership. It provides members 24x7 access to a dispersed network of shared vehicles, at unatte nded self-service locations, at affordable hourly and/or per mile rates that include gas, insurance and maintenance. Car sharing allows membe rs to save money over the cost of individual car ownership by encouraging members to drive less, use alternative transportation and utilize fuel efficient vehicles when a car is needed. UNATTENDED NETWORK MEMBERSHIP PERIODIC USE $ HOUR MILE VARIABLE PRICE
3 Car Sharing Definition MEMBERSHIP VARIABLE PRICE UNATTENDED PERIODIC USE Defined by Environmental & Social Benefits NETWORK OF CARS
4 Car Sharing Objectives ENABLE BETTER LAND USE INCREASE USE OF ALTERNATIVE TRANSPORTATION REDUCE VEHICLE MILES TRAVELLED REDUCE INDIVIDUAL CAR OWNERSHIP REDUCE GREENHOUSE GAS AND OTHER EMISSIONS REDUCE DEPENDENCE ON FOSSIL FUELS REDUCE THE COST OF MOBILITY
5 North American Marketplace Market Dynamics Car sharing is a $140,000,000 market in North America, experiencing growth. Both consolidation and new market entry characterize the current marketplace. The related Sustainable Transportation segment, incorporating car sharing, can be a $1 Billion+ industry within 4-5 years. Zipcar, a for-profit international competitor, currently is the only major multi-regional player in North America. They are not profitable. Three large rental car companies (Enterprise, Hertz, Avis) have/are considering entry strategies in direct response to Zipcar. 20 socially responsible car share organizations operate independently but collaboratively under an industry Code of Ethi cs.
6 Growth Trend North America N.A. Car Share Membership
7 North American Market Expansion Reported Growth is 25% - 30% year over year - Currently - - Estimated YE Over 6100 vehicles Over 8000 vehicles About 240,000 member About 300,000 member I CSO 25 independent car sharing organizations with about 2000 vehicles & 90,000 members 5 known new CSOs are launching in 2008 Note: above estimates to do not count the entrance of additional major multi-regional players.
8 North America Est. Car Sharing Potential Carshare Member Forecast North America Members Expon. (Members)
9 Impact Environmental and Social Impact - City CarShare Save 30,000 vehicle miles traveled each and every day Save over 1 million gallons of gasoline this year Save up to 22 million pounds of CO2 emissions this year (11k tons) Save 1.2 tons of greenhouse gases for each member of City CarShare Reduce driving by members 45-90% compared to when a car is owned Reduce congestion by eliminating up to 15 cars for each City CarShare car Increase use of alternative transportation options 20% -50% Reduce need for parking Planning Code Average car expense $50/month compared to AAA estimate of $600-$700/mo for ownership Sources: UC Berkeley, Cervero 2006, AAA (2005), TRB Report #108
10 North America Est. Car Sharing Potential Carshare & Related Mobility Forecast 5 Year Potential Sustainable Transp. Vehicles Users Revenue Carshare Services 31,825 1,273,000 $743,432,000 Related Mobility 1,364,700 $218,352,000 (rideshare, pool, fleet, etc.) Total Sustainable Transportation Revenue $961,784,000 Extrapolation Environmental Impact in 2013 Gallons of Gas Saved: CO2 Emissions Saved: Fewer Cars on the Road: 105 million gallons (annually) 1,155,000 tons (annually) 478,000 vehicles
11 Carbon Comparison
12 Carbon Producers US GHG Emissions Transportation 33% Other 67% Cars and light trucks emit 59% of transportation-related CO2 in USA - Dept. Energy 2003
13 Density and Suburban Question Housing & Transportation Index Affordability Index - CNT Density: Households per Acre Light HH Dark 8.5+ HH
14 Density and Suburban Question Housing & Transportation Index Affordability Index - CNT Automobile Ownership: Cars per HH Light Vehicles Dark 1.8+ Vehicles
15 Density and Suburban Question Housing & Transportation Index Affordability Index - CNT Vehicle Miles Traveled per Household Light 0-12,000 VMT Dark 18,000+ VMT
16 Financial Efficiency Financial impact can be substantial. Income not used on vehicle s becomes income available for living expenses, savings, education, etc. In 2008, car share members in the Bay Area will save over $80 Million. Amount Spent on Automobile Expenses (total AAA estimates) $ 102,960,000 w/o car sharing $ 13,200,000 with car sharing $ 6,600,000 other driving (members) DRIVE FOR LESS. SHARE MORE. BE GREEN. Source: AAA $600/mo/car; CCS usage $50/mbr; 22-25k mbrs in Bay Area; 2/3 mbrs delay buying or get rid of car
17 Summary Significant Environmental & Social Benefits in Urban Areas Fewer Cars on the Road Fewer Vehicle Miles Traveled Significant Reduction of CO2 & Other Emissions Increased Use of Public & Other Transportation Reduced Cost of Mobility
18 City CarShare 1182 Market Street, Suite 300 San Francisco, CA
19
20 CO 2 Emissions SF Region San Francisco Region Baseline: Transportation 51% Baseline: 1990 Census Sources: San Francisco Department of the Environment, San Francisco Public Utilities Commission. Climate Action Plan for San Francisco. September Note: Does not include aviation
21 North American Car Sharing Marketplace North American Organizations Structure Territory Key Cities # Veh Code of Ethics Status Large Regional (50 cars or more) Autoshare for profit Ontario, Ca Toronto 163 veh City CarShare non-profit San Francisco Bay Area San Francisco, Oakland, Berkeley 240 veh Communauto for profit Quebec, Ca Montreal, Quebec City 711 veh Cooperative Auto Network (CAN) coop; non-profit British Columbia, Ca Vancouver 220 veh igo non-profit Chicago area Chicago 200 veh Philly Carshare non-profit Philadelphia & Delaware Philadelphia, Wilmington DE 402 veh founder; active founder; active founder; active founder; active founder; active founder; active Multi Regional ZipCar (incorporating Flexcar) for-profit; VC funded No. Amer. large urban cities, colleges Boston, Philadelphia, Wash DC, San Francisco, Seattle, Portland, Chicago, Toronto, Vancouver 4.5k veh Declined to participate U-Share (U-Haul)* for-profit USA, various cities Philadelphia, Wash DC, San Francisco, Seattle, Portland, Chicago, Boston, Madison, Ann Arbor est. 50 vehicles na
22 North American Car Sharing Marketplace North American Organizations Structure Territory Key Cities # Veh Code of Ethics Status Other Regional Providers Austin Carshare non-profit Austin, TX Austin 5 veh tbd Boulder Carshare coop; non-profit Boulder, CO Boulder <10 veh tbd Community (Bellingham) Community Car (Madison) Grand River HourCar non-profit Bellingham, WA Bellingham unk tbd non-profit Madison, WI Madison 15 veh tbd coop; non-profit non-profit Kitchener, Ontario Minneapolis area Kitchener 9 veh Minneapolis 16 veh tbd My City Wheels for-profit Cleveland Cleveland <10 veh tbd WeCar (Enterprise)** for-profit St. Louis St. Louis 15 veh na Vrtucar for profit Ontario, Ca Ottawa 38 veh New and Others Maryland CarShare unk Maryland Baltimore new tbd Solar Carshare for-profit Sebastopol, CA Sebastopol new na Green Mountain CarShare non-profit Vermont Burlington new tbd Ashland non-profit Ashland, OR Ashland new tbd Carshare HFX for-profit Halifax Halifax tbd Ithaca Carshare non-profit Ithica, NY Ithica new tbd Other: Roaring Forks, Aspen (City run); Scoot, Bremerton, WA (City run); Edmonton (AB), Ann Arbor, MI; Kitsup, WA; Calagary (AB); Victoria (BC); UC Riverside, CA; Nelson (BC); Fort Wayne, IA; Rutledge, MO; founder, active founder; active
23 How Big Can It Get? - Market Potential Est. Size Sustainable Transportation Segment 5 Years Est. Volumes: Existing Markets Current Major Mkts Est. Potential in 5 Yrs Ttl Cur CS Veh Total Mkt Mbrs Zip's Mbrs Regional Areas Est CS Veh Pot. Est Mbrs ,840 26,840 Boston 4, , ,574 35,574 New York 7, , ,956 3,456 Philadelphia 2, , ,480 29,480 Wash D.C. 2, , ,362 8,262 Chicago 2, , ,040 8,040 Portland 1,675 70, ,640 16,240 San Francisco Area 4, , ,360 9,360 Seattle 1,733 72, ,000 - Montreal (+QC) 2,333 98, ,932 8,432 Toronto 2, , ,680 3,180 Vancouver 2,067 86, ,000 6,000 Others 15, ,000-6, , ,586 Totals 49,502 1,983,960 Estimate March 2008 Graphics: Philly CarShare, GoGet Car Share
24 Socially Responsible Model Car sharing as served by socially responsible providers Socially responsible car sharing organizations base their expans ion, policy, pricing and services on a model that encourages growth of all ca r sharing and related sustainable transportation services over profit margins. These organizations, private or non-profit, operating in a financially sustainable manner, however, to ensure the viability and continuation of services to their communities. Socially responsible organizations view themselves as transit, part of the public good, and integrated into the local transportation network. Car sharing requires a balance between mission and responsible business operations. To that extent, socially responsible organizations serve stakeholders, not shareholders, first and foremost. --Above concepts are derivatives of the CSO Industry Code of Ethic s document
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