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Monday, April 6, 2015

3:25 PM

Is Car2Go Black the next chapter of carsharing?

(This was originally published in February 2014, but I've extensively updated it.)

From about day 2 after the initial launch in of Car2Go in Ulm, Germany people have been wondering if/when/whether Daimler would ever to include one of their larger vehicles in the car2go fleet?  Well, they did in February 2014 — Car2Go Black — in Berlin and Hamburg with 100 Mercedes B-Class vehicles.  Now it's got locations in 8 cities in Germany.


(The Men In Black juxtaposition is mine, not Daimler's.)

it appears they're doing it with the same flair and originality that marked the first Car2Go.  They could have easily and simply seeded a city fleet with 20-30 B-class sedans and let them float around the city and called it good, but they didn't.

Instead, it appears they've given a lot of thought about how to provide a flexible, convenient service.  They decided to place these "black" vehicles in several strategic locations around a city and let the customers come to them (I'm sure they're hoping it will be in a Car2Go Smart).  Black vehicles can be unlocked via RFID card of smartphone app.  The key is in the glove box, not on the dashboard as in the Smart cars.

Reservations are required and They system allows one-way trips between Car2go Black cities but the destination must be specified at the time of reservation.  Reservations can be made for up to 14 days, with trip start and ends in 15 minute increments.

Car2Go Black pricing (PDF) is a model of simplicity and seems competitive with the car rental service it is — (as of April 2015) 14.90 € per hour including 50 kilometers per trip with additional distance at 0.29 € per km. or 89€ per day, including 200 km/day and same price for additional km.  For cities with airport locations, there's a 4.90€ additional fee.  Locating, unlocking and billing will be through the Daimler Moovel app.

Commentary

I think Daimler has come up with a very clever compliment to its original Smart Car2Go system.  And should be pretty efficient to operate, as well, given that it's basically a largely unattended car rental service.

They may not know it, but Car2Go has pretty much implemented mobility guru Dan Sturges' ideas of "near cars" (Car2Go Smart) and "far cars" (Car2Go Black) as a complete urban automobility solution.

And Car2Go Black already has a ready pool of thousands of existing customers signed up and in their system - credit cards and all!  From an OEM's point of view Car2Go Black could be to be a great way for Car2Go customers to try out the "move up" B-Class model, just in case they're is in the market for a new car! (I don't know about whether this was done in Europe, but Car2Go in the USA did a member promotion offering a discount on the purchase of a new Smart car a couple months ago.)

So, around town, Car2Go Black will be a premium car rental.  But 14.90 € per hour (the same price as Car2Go Smart cars) is quite a bit more expensive than what other carshares charge for their most luxurious vehicles (not Mercedes, admittedly) and is similar to DriveNow's hourly rate for Mini Coopers and BMW 1-series.  However, Avis would be glad to rent you a B-class for around town use in Berlin or Hamburg for a similar price, but which wouldn't include fuel or insurance (but would be a lot more if you wanted one-way trip between cities).

A trip from Berlin to Hamburg would be about 120 € in a Car2Go Black (assuming the Autobahn cooperated), which is about what a high speed train trip for 1 person without a discount card would cost (in fairness, the train makes the trip about 50% faster).  How often the one-way between cities option will get used is anyone's guess. And it's worth nothing that the one-way between cities is not original with Car2Go — a similar one-way option to travel between cities is already offered by DriveNow between Köln and Dusseldorf.

As with all flavors of carsharing: Customer Convenience = Car Utilization.  And how convenient this station-based carsharing will be depends at least somewhat on how convenient the parking / garage locations turn out to be.  Car2Go Black is a particularly good strategy for Daimler, since the Smart vehicle is such a specialized "city" car.  DriveNow, with it's more versatile fleet, can provide similar, if not greater convenience for longer, out of town trips with it's floating fleet vehicles.  Both approaches have pluses and minuses so it's really up to the customer!

As a reminder about the bigger picture, Car2Go isn't the only trick up Daimler Innovation's sleeve.  They have made substantial moves into the ridesharing market as well.  In addition to their investment in Carsharing.com, they have invested in the trip planner app Moovel and now bundled their full suite of mobility services (from themselves and partner) under Moovel listed here (don't ask me why it show up under the Mercedes name).  Integrated mobility coming soon to a smartphone near you!

I know I'm not the only person who will be watching Car2Go Black closely.  Best of luck, meine Damen und Herren.

Tuesday, March 24, 2015

3:34 PM

How does Flexible Carsharing Change Mobility & Car Ownership?

The two leading flexible carsharing (one way/on demand) providers in Europe, DriveNow and Car@Go, have made a useful contribution to understanding the effects on members' transportation patterns with the release of a summary of a Joint Mobility Study By DriveNow and Car2Go.

The companies surveyed 2,881 members in Europe, all of whom had been members for at least 3 months and had used a vehicle in the past 30 days.  There was a fairly even distribution of ages from 18-50 and somewhat lower representation above that.  Over 2/3rd of those responding to the survey were male and about the same percentage had no children in the household (the report makes no statement whether the demographics are representative of the membership of the organizations).

Here's how members said they used vehicles:


Since the earliest days of Autolib' in Paris, there has been a concern that flexible carsharing would take passengers from public transport, and contribute to traffic on city streets.  Although the report indicates that carsharing members continue to use public transport and bicycling, there were some situations where users did subsitute flexible carsharing for a transit trips - when the transit trip would have been long or required several changes (echoing a finding from the early studies of City Carshare by Robert Cervero).   The main reason members gave for using flexible carsharing were when it was "the best and quickest way to reach my destination" (80%).  In addition to improved convenience over a transit trip, members used flexible carsharing if they believed the trip was less expensive than a taxi (62%) or if cycling was not convenient (43%).


Another concern about flexible carsharing has been that it might not have the same effect of motivating people to reduce the number of cars they own (and hence the temptation to use those cars) as traditional round-trip carsharing.  In the survey, 37% of members reported giving up a vehicle - of which more than 3/4s gave up their primary vehicle.  That's impressive!
Cars given up by flexible carsharing service members by year




























What members said they liked about flexible carsharing were:
  • I have the option to use a car spontaneously, if required (54%)
  • The majority of my destinations are also accessible via other types of transport (53%)
  • The upkeep of my own car was too expensive for me (45%)
  • I hardly used my own car (42%)
  • My life situation has changed (40%)
Regarding the growth of flexible carsharing, members indicated they would use it more, "If the cars were more reliably available in my area when I need one" (74%; which just about every user of flexible carsharing can testify is an occasional problem) and, "If I could use the cars for longer at a reasonable price, e.g. for weekend trips" (43%; an attraction of car ownership, as well as lower-priced traditional round trip carsharing).

Not too surprisingly, the report concludes that since the benefits of flexible carsharing are real, "upscaling the services would increase the beneficial effects" for cities.  I agree.

Industry report or not, I compliment both companies for providing a snapshot of their members.

(Sorry readers, I can't locate a link to the full report and charts online.  Here's the press release in German.)

Tuesday, February 3, 2015

10:11 AM

Another update to the classic urban mobility options graphic

My recent post showing updates on a classic graphic of transportation modes based on flexibility-distance received a lot of interest.  I recently came across another variation on this chart from Vincent Pilloy of the Paris-based transportation consultancy Innov360.



Unlike the other conceptualizations Pilloy's conceptualization includes walking and car pooling - useful additions to the chart, I think.  However, I'm not sure why P2P carsharing would be more useful for longer distance carsharing trips.

It was part of a blog post describing the various types of carsharing - round trip, one way station-based, free floating, etc.  Nicely done.

Wednesday, January 21, 2015

11:30 AM

City Mobility Scores and Carsharing


The success of carsharing clearly isn't just about how good the operator of the service is, it's also based on the overall balance and richness of the transportation environment of the city (and how the operator designs their service to fit into that environment.  Figuring out some way to "rate" cities on mobility seems like a key to greater understanding for policy makers, as well as a way for the carsharing operator to understand the city they're serving better.

This is interesting and useful attempt to define a set of criteria and develop ratings for 84 world cities in this full report The Future of Urban Mobility (PDF) report by Arthur D. Little for UITP organization.







The author's, François-Joseph Van Audenhove, Laurent Dauby. Oleksii Korniichuk, Jérôme Pourbaix
have divided the mobility factors into Maturity and Performance categores, and include both carsharing and bike sharing in the Maturity ratings.  (I wonder if they'd include Uber if they'd been writing the report in 2015?)  These factors were weighted and the index score calculated.

Of course one can quibble.  I would have substituted "smart PHONE penetration for "smart card penetration" and, ideally, some sort of land use rating to describe the proximity of neighborhood services that enable residents to not make trips at all.

While developing a index is can be useful, much can get lost in the process.  I noticed that Lost Angeles scored slightly better than Portland (my home town) but it's hard for me to imagine that LA really has a "better" urban transport system?

Monday, June 30, 2014

10:48 PM

Where Does Carsharing Fit in the Scheme of Transportation Modes?

When I was first getting interested in carsharing, way back in 1996, I came across a wonderful graphic that really helped me understand the role of carsharing in transportation.  You've probably seen this graphic in numerous Powerpoints — which modes are best for which types of trips, based on the Distance of the trip and amount of Flexibility (time, destinations) needed during the trip.

I first saw the graphic on Eric Britton's foundational website and e-mail discussion group at World Carshare Consortium, which is still alive and well (as is Eric, who has created more website and discussion groups since then than I can keep track of!)  He told me that the original source, from 20 years earlier, didn't actually call it carsharing but the term "paratransit"(after all the term wasn't coined until 1987 when carsharing as we know it got started, almost simultaneously in Switzerland and Germany).  Somewhere along the line, the word Carsharing got substituted and the chart became history.

 (From Ron Kirby and Kisten Bhat: Para-transit: Neglected options for urban mobility, Urban Institute, 1974)

Well, that graphic was history, until now. But even carsharing evolves and now we have a new flavor - one-way/on-demand carsharing (e.g. Autolib, Car2Go, Enjoy, JoeCar), which has somewhat different trip characteristics.  So I was very pleased to find an updated version of this chart from Marco Viviani of CommunAuto, Montreal, showing the place for One-Way.

Something that Viviani's graphic does very nicely is to convey what those swirly black line arcs in the upper graphics represent - the possible overlap between modes.

One might argue that the One-Way bubble should really be a big elipse that also slightly overlaps with Public Transit, since the most recent evaluations show a slight decrease in transit trips by one-way users.  (But, for what it's worth, I would suggest this should not be a big concern since these are likely trips that would have been difficult to do on transit - either because of time and schedules or because of the number of changes required.)

I suppose one could include Uber, Lyft and Sidecar in the Taxi category, if you really wanted to update it.  The next question will be where autonomous cars belong on the chart?

Hope this is useful.







Friday, March 7, 2014

1:59 PM

Does it really cost $9,000 per year to own a car in the US?


I saw it again: another article quoting a statistic of how much it costs to own a car!  You know, the one quoting AAA's calculations that it costs $9,000 per year. 

I am so tired of seeing that statistic!  Not that's it wrong, mind you, but because I don't think quoting it (without some context) actually makes people more aware of the cost of car ownership. Let me explain why.

First of all, if you own a car, you're probably NOT spending $9,000 per year, and I think the chances are slim that you even know someone spending that much each year (unless they own a very fancy car and live in a big city with very expensive rented parking space).  

It's not that the $9,000 number isn't true - I think the AAA did their homework, since it matches up very closely with Intellichoice cost of ownership numbers.  But as the AAA chart (PDF) shows, it's only true for very high mileage drivers in new, medium size cars - and, I would argue, these people aren't the people likely to join and use carsharing.  

I think the number that is more realistic to quote is the AAA number for a small sedan at a lower annual mileage of 10,000 miles per year - about $5,900 per year.  And these are big numbers:
  • $12 per day
  • 60¢ per mile (10,000 miles/year)
  • 46¢ per mile (over 15,000 mi/yr)
So my second objection to the $9,000 per year price tag is that it probably doesn't apply to a big percentage of the prospective customers for round-trip, station-based carsharing.*  Remember these AAA numbers are for new cars and would apply to vehicles less than 5 years old.  But most of the cars on the road today aren't new and especially those owned by prospective carsharing members.  The average age of cars on the road is almost 11 years -  34% of all cars are between 6 and 10 years old and another 36% are older than 10 years.   I would suggest that probably 40-50% of the vehicles on the road would be considered fully amortized (no depreciation or finance charges in the AAA chart) - these owners are probably looking at operating costs in the 25¢ per mile range.

It well known that most people who own a car don't have a very clear ide of what their car is costing them.  So, they don't have a good reference point to compare carsharing rates to ownership.  The closest comparison might be cost of car rental, so carsharing may seem expensive, since most rental rates have a lot of hidden costs - fuel, insurance, inconvenience of renting, etc.  And, unless they are familiar with bicycling/walking/transit use, it can be difficult to imagine accomplishing much of one's life without a car parked out front.

Don't get me wrong, part of any marketing campaign for carsharing needs to include the cost of ownership comparison.   But people make their decision to join carsharing based on many factors, one of which is cost comparison, but for most people the fundamental decision is a "value" question - "carsharing is convenient and less hassle and I get to drive to drive a variety of cool cars."

So, let's get out there and tell the world how expensive car ownership is - but give them a believable number in a context they can relate to.

*  Although, the $9,000/year number might apply to a greater percentage of prospects for one-way/on-demand carsharing, they are probably interested in one-way service for the convenience aspects not the money-savings.)

Tuesday, February 11, 2014

3:12 PM

Where to go for more information about carsharing

I'm regularly asked what are some other sources of information about the rapidly diversifying carsharing industry, so here are a couple of comments and a couple of places to spend some time.

First, the comments: if you're looking for operational data - hours per day of utilization, revenues, etc. - I'll tell you right now, there's ALMOST NOTHING on the web.  The reason is not hard to figure out: most of the companies are for-profit and don't want their competitors doing exactly what you're trying to do - reverse engineer their business model.  Nothing surprising about that, is there?  You can try to do a little reverse engineering from Zipcar's old SEC filings (pre/post IPO), City Carshare's tax forms (they're a nonprofit) on GuideStar, and the financial statements in Mobility Switzerland's annual report (they're a cooperative).

What is on the web has a lot to do with the growth of the industry and the demographics of members and trip patterns, as it relates to impacts on urban transportation.  Almost all of the information out there is about traditional round trip, station-based carsharing, since the first studies of one-way/on-demand carsharing and P2P carsharing are only now underway with results expected to start trickling out in the fall of 2014.

Finally, I would warn you you can spend a huge amount of time on the internet looking for information that just doesn't exist.  Trust me!

The starting point for any research on carsharing is the 2005 study by Adam Millard-Ball Carsharing Where and How It Succeeds.  This is the bible on round-trip station-based carsharing.  Fortunately, you can download the entire book for free from the Transportation Research Board here.  Really, start with this report whether you're a car rental company, a city government agency or a business major writing a report or a business plan.

TSRC — At the Transportation Sustainability Research Center at U.C. Berkeley, Dr. Susan Shaheen has been researching carsharing longer than anyone, and we are fortunate that she's got an academic home that has enabled her to research and publish so much about the evolution carsharing.  Reports by her, Eliot Martin and Adam Cohen are cited everywhere and for good reason.

Some other sources to check out:

Auto Rental News magazine — Chris Brown the editor of Auto Rental News realized early on the implications of carsharing on the rental car industry and started covering it.

CSA — The Car Sharing Association is a North American-based trade and advocacy group with a growing world-wide membership, which primarily serves as a forum for operators.  Some of the most useful current information is from the presentations from their 2013 conference here.

My Twitter feed — You'll quickly see that I Tweet a lot more than I write blog posts.  I cover current developments in carsharing and "new mobility", in general.  My most recent Tweets are to the right.

Carsharing.Net — Carsharing.net is curated by Autoshare (Toronto) CEO and Canadian carsharing pioneer Kevin McLaughlin and has a bunch of information, some new, some old including some "how to's" about starting a carshare from some of the pioneers. You can still download my 2004 TRB paper CarSharing - Start Up Issues and New Operational Models from the Carsharing.net website here.  People tell me is still a useful overview, even though the technology sectiion is woefully out of date.

Frost and Sullivan — Martyn Briggs and his band of researchers at Frost and Sullivan have produced a number of very interesting reports about carsharing and future of mobility and the automotive sector in both North America and Europe over the past few years.  Of course, they'd really like to sell you the full reports.  Search their site for the latest press releases here.

CommunAuto — Special mention should be made of the extensive bibliography of both French and English research reports on carsharing, starting pre 1981 and extending to 2005.  This is a gold mine for history buffs.


Slideshare — And while we're on the topic of slide decks, there are a number of Powerpoints on Slideshare worth looking at.  I'd start with the one's that have the most views here.


For international research you mostly have to go to consultants like me or hope you find something useful at the websties of trade associations in various countries.

World Carshare Forum — Eric Britton has been interested in carsharing even long than I have and has been an inspiration to pioneers in the industry through the World CarShare Forum.  But as carsharing has become well-established he's broadened his interests into more general sustainable mobility topics.  He's tireless in just about every medium imaginable, Facebook, Linked In, etc. Well, worth a read.

CarPlus — The CarPlus Trust in the UK is another go-to source for English-langauge information about "car clubs" in the UK ("carsharing in the Queen's English is what we Colonists call "carpooling").  They're an umbrella organization, setting standards and promoting the car club idea all over the British Isles and their best practice guides and annual report of car clubs is a model that every cities and, indeed, other countries should emulate. You'll also find references to reports by Dr. Scott LeVine of the Royal Auto Club Foundation in the Resources section, such as his recent Car Rental 2.0.

BCSBundesverband Car Sharing (Federal Association of Car Sharing) headed by long-time carsharing researcher/advocate Dr. Willi Loose, is the trade group for the carsharing industry in Germany and they also publish a useful annual report.  They have an abbreviated but useful summary of international research on their website translated here.  As with other country sites, you can search for the cities that offer casharing - and in Germany that can be daunting, since there are over 110 companies offering carsharing in Germany.

France — Somewhat suprisingly, there's no organization representing all the carsharing services in France.  The Autopartage France group of cooperative carsharing services has recently rebranded itself as the Citiz Network.  They link to a very interesting national survey of carsharing in France translated here.   An interesting, if a bit purist, discussion forum about autopartage is La Voiture Autrement, machine translated into English here.

Australia — has several major carshares serving multiple cities.  The Australian government has published several reports about carsharing over the years.

Japan — Not surprisingly, given the density and cost of owning a car carsharing has taken off in Japan with a major parking operator and car rental firm offering carsharing.  In addition, there are many smaller groups offering EVcarsharing services, as well as experimental programs from Toyota (Ha:Mo) and Nissan (Choimobi). Email me if you are interested in more information.

The rest of Asia — Without Google Search and GoogleTranslate, the scattered news articles about carsharing developments would be the inscrutable Orient!

And a final comment, do not overlook Wikipedia.  Even I am constantly discovering detailed stuff on Wikipedia I'd never seen before.

Happy hunting.  But don't say I didn't warn you!  That's what we consultants are in business for - to help you sort out the wheat from the chaff - much faster and more economically.