Feasibility of Car-Sharing Service in Hangzhou, China

Transcription

1 Feasibility of Car-Sharing Service in Hangzhou, China 1

2 Project Members 2

3 Project Goals 3 In depth feasibility study of launching a car sharing service in Hangzhou Provide possible ways of implementing a car sharing service in Hangzhou

4 Timeline 4 Phase 1 March 7 th - June 26 th Car-Sharing Research Zipcar Analysis Air Pollution Boston Hangzhou Comparison Phase 2 June 26 th - August 10 th Surveys Interviews and site visits Feasibility Study Implementation Analysis

5 Car Sharing 5 Join Reserve Manage Access Drive Return

6 Outline 6 Feasibility Study Social Impacts Market Analysis Financial Study Implementation Technological Aspects Location Analysis Adverstiment

7 Social Impacts 7 Environmental Impacts Oil Production Electric Cars

8 Air Pollution Environmental Impacts Average car emits 2.3 tons of Carbon dioxide and 2,810,000 grams of other harmful greenhouse gases per year Noise Pollution Automobiles produce decibels 8 Natural Resources Demand for fuel increases fuel prices Increases demand for car manufacturing materials (steel, aluminum, rubber, etc.)

9 Oil Production Pure electric vehicles powered entirely on electricity, and even hybrid electric vehicles, can greatly reduce oil consumption for the automotive industry. 9 It is estimated that the traditional fuel vehicle from mining to energy use, has an average utilization rate of only 14%, while the hybrid vehicle energy is about 30%, greatly improving the utilization of the oil

10 Impact of Electric Cars 10 One electric car can reduce CO2 emissions 64%,assuming the electric car is 10% of all the cars in The electric cars can reduce about 9% of all the emissions of auto industry Electric cars produce decibels Newer technology will increase the range of electrics car and their future impact will challenge the way the auto industry.

11 Market Analysis Features of car-sharing service 11 Needs better infrastructure facilities Smooth road conditions Membership system - social credit history A new concept Need driver s license

12 New Urban city area area Market Segmentation 12

13 City Comparison 13 Bus to Population Ratio Subway to Population Ratio Zipcars to Population Ratio Cities Population ZipCars (estimate) Buses Subway Atlanta 420, Boston 617, Chicago 2,695, London 7,825, New York 8,175, Philadelphia 1,526, Portland 583, San Francisco 805, Seattle 608, Toronto 2,503, Vancouver 578, Washington DC 601, Hangzhou 8,700, Total zipcars 5810 Average zipcars to population Possible Zipcars in Hangzhou

14 Survey 14 Place: West Lake, Wumart, Hangzhou Tower, Hubing Square, Wushan Square, Qingchun Road, Wensan Road, Yigao Digital Square, Huanglong Gym, Citizen Centre Total: 414 questionnaires

15 Survey Question 1 & 2 15 Male vs. Female % Age Groups >50 3% Female 42% % Male 58% %

16 Survey Question 3 & 4 16 Have a License? Are you a No 53% Yes 47% Other 33% Resident 49% Tourist 18%

17 Survey Question 5 & 6 17 If Tourist Transportation Expenses Other 33% Car Sharing 27% Rent Car 9% % % >600 15% % Taxi 31% %

18 Survey Question 7 & 8 18 Primary Transportation Other 5% Car Sharing Interests Bus 40% Car 11% Bicycle 17% No 8% Dont Know 22% Walk 13% Taxi 14% Yes 70%

19 Survey Question 9 & How Much Willing to Pay? % % >81 1% Government Implement Not Sure 24% % <50 61% No 8% Yes 68%

20 Population Subdivision According to the Questionnaire whether whether have car they the users driver's private want to license car try carsharing age you are 414 questionnaires 1. Gender : male: D>50 female= 57:43 A yes C other 2. Young age structure 31% 221 customers 3. B The no\not number sure of potential customers is large 41% B no C % 4% 4. Focus 52% on residents A % A resident A willing 52% to 59% A Yes 48% 5. Nearly B % of car users are willing to B tourist support 46% car-sharing service. 17% B no 82% 20 18% A resident A B A Yes B tourist A yes C B B no no C other D>50 A willing to B no\not sure

21 The Feature of Target Customers 21 Young More men than women, High levels of consumption Good credit record Hangzhou residents

22 Financial Aspects 22 Car Sharing versus Private Car Car Sharing versus Taxi Car-Sharing versus Car-Rental Financial Plan

23 Car Sharing versus Private Cars 23 The Yearly Costs of Private Car Cost ( ) Depreciation 26,980 Insurance 4,000 Annual Inspection 150 Maintenance 1,200 Gas 6,160 Parking 1,800 Toll Fees 1,600 Total 41,890 The Yearly Costs of Car Sharing Service Cost ( ) Costs of Car Sharing Service( 200hours and 40/h) 10,000 Other Increased Transportation Costs 2,500 Total 12,500 Cost savings 29,390

24 Car Sharing versus Taxi 24 Explanation Xiasha - Downtown (One hour spent in downtown) Xiasha - Downtown (Three hours spent in downtown) Xiasha - Xiaoshan Airport (Picking up someone from the airport) Total Cost of Car Sharing ( ) Round Trip Cost Of Taxi ( )

25 Car Sharing versus Car Rental 25 Costs Low Vehicle (Mazda) Middle Vehicle (Volkswagen Passat) Car-Sharing Lease Cost 120/day 200/day 40/hour Insurance 30/day 40/day - Gas Fee 150/day 150/day - Average Miles Other Fees 35/day 35/day - Total Hours Total Cost per Day

26 Financial Plan 26 Assumptions Variable Costs Fixed Costs Price Scheme Revenue Financial Plan

27 Scenarios 27 Number of Members at the End of the First Year Number of Cars Revenue Variable Costs Internal Rate of Return (5 years) ,062,500 1,920,000 18% ,125,000 3,840,000 96% ,250,000 7,680, %

28 Implementation of Car Sharing in Hangzhou 28 Technological Aspects Location Analysis Marketing Analysis

29 Technological Aspects 29 Central database User interfaces Communication system On board vehicle system

30 Central Database 30 Member applications Account information Vehicle data Reservations Time and mileage data Employee data

31 User Interface 31 Internet interface Online reservations Automated voice-activated phone reservations Live operators

32 Communication System 32 Wireless communications Global Positioning System (GPS) Connection between vehicles and the central database

33 On Board Vehicle System 33 Card readers Radio Frequency Identification (RFID) On-board computer

34 Location Analysis 34 Key qualities for locations High population density A mix of land uses Good transit access Low-vehicle ownership Inconvenience of other alternatives Financial sustainability

35 Location Analysis 35 7 downtown locations, 3 suburban locations

36 Location Analysis in Hangzhou: Downtown High density Great number of nearby destinations Tourist attractions Restaurant, shopping mall, and more. Target customers: tourist, residents who do not own a car, business employees and government offices Average income is high 36 Safer area than suburban districts

37 Downtown Location: Qingchun Square 37 Location: Center of Hangzhou North of Qingchun Road East of the West Lake High Density: Permanent population: 1,000,000 Floating population: 380,283 Mix of Land use: Residential Employment

38 Location Analysis: Suburban Areas Dense urban neighborhoods Mixed-use development Universities 200,000 university students Business: office buildings Residential Communities Scarce parking Parking cost is cheaper than in downtown Good transit 38

39 Suburban Area Location: Xiasha 39 Location 18 km east of West Lake Eastern part of Hangzhou Population: 310,733 Target customer: university students 200,000 students Special niche for car-sharing Good transit access

40 Advertisements 电 视 :TV advertising 报 纸 :Newspaper advertising 网 络 :The Internet 电 台 :Radio 户 外 广 告 牌 :Outdoor billboard 宣 传 册 :Brochures 现 场 直 播 :Broadcast live on advertising 40

41 Advertising Costs 41 Type 类 型 Cost 成 本 Time 时 间 TV advertising 电 视 80,080 A week Newspaper advertising 报 纸 42,000 A year The Internet 网 络 Free No limit Radio 电 台 136, days Outdoor billboard 户 外 广 告 牌 300,000 A year Brochures 宣 传 册 2,000 A year Broadcast live 现 场 直 播 50,000 Half hour

42 Recommendations 42 Risks of car sharing Partnerships Future work

43 Risks of Car-Sharing 43 Over commit to customer demand Electric vehicles One-way trips Picking the wrong location Competition with taxi and private cars

44 Partnerships 44 Public organizations Private organizations Benefits of partnerships

45 Future Work 45 Future of electric cars Detailed analysis on locations Accurate financial information Questionnaires

46 Thank You! 46 Delta Investment Consulting Omnipay Hangzhou Dianzi University Advisors