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Title: CarSharing:


1
CarSharing
EXTENDING YOUR REACH, IMPROVING YOUR MARGINS
  • Presented by ABRAMS CARSHARING ADVISORS

2
Introduction
Why CarSharing? Why Now?
"Be Ahead Of The Curve!"
For over 26 years, ACG has remained in the
forefront of the evolution of the auto rental and
transportation industries. We have worked with
our clients to look beyond the horizon, to stay
ahead of the curve, to challenge existing
business models, and adjust to changes in
consumer behavior and market dynamics.
CarSharing's time has come as it taps into
long-term cultural, environmental, economic, and
life style shifts, and is poised to become a
multi-billion dollar global industry. ACA has
been formed to assist existing and new
businesses, corporate fleet operators, and others
who have short-term transportation needs, to
exploit the enormous value proposition offered by
CarSharing. Neil Abrams President and Founder of
Abrams Consulting Group
3
Background
What is CarSharing?
  • CarSharing is a membership based organization
    open to the public.
  • Fully automated platform where members and
    businesses have access to vehicles 24/7 through
    the use of the internet, wireless and GPS
    technology.
  • The CarShare technology enables individuals to
    drive a car on an as-need basis, paying only for
    the time and mileage they reserve.
  • Vehicles are located at unstaffed self-service
    locations.
  • The CarShare Operator (CSO) provides the gas,
    insurance, parking and maintenance.

4
Background
History of CarSharing
  • Although CarSharing dates back to the 1940s in
    Europe, more successful CarSharing programs
    launched in Germany and Switzerland in the
    mid-1980s.
  • Modern day CarSharing began in North America in
    the mid-1990s. As of 2010, CarSharing as an
    industry has more than 450,700 members served by
    over 10,194 vehicle throughout North America
  • There are over 1 million CarShare users worldwide

5
Background
CarShare Growth
6
Background
How Does CarSharing work?
  • Join or register on-line. Once application is
    approved the member is given a smart card.
  • Member can now reserve any vehicle in the fleet.
  • The CarShare member use their smart card or cell
    phone to access the vehicle

7
Background
How Does CarShare Technology Work?
  • Reserve on-line or phone.
  • The data is wirelessly transmitted to the
    hardware installed in the vehicle. The vehicle
    now knows the date and time of your reservation.
  • The CarShare technology logs vital driver and
    vehicle usage. That information is transmitted
    back to the CSO server.
  • The CarShare technology automatically process the
    members usage and bills their credit card.

8
Background
Policies Procedures
Basic Member Rules
CSOs are responsible for
Only CarShare members are authorized to operate
the vehicles
CSO pays for gas. A gas card is assigned to each
vehicle. Members are required to fill-up the tank
when it reaches below a ¼ of a tank.
Vehicles must be returned to the same locations
and parking spaces
CSO provide insurance coverage up to the minimum
state-mandate, which vary by state and CSO.
Members are expected to return the vehicles on
time or are subject to penalties
CSO provides assigned parking
No Smoking in any CarShare Vehicles
CSO are responsible for all vehicle maintenance
and service. This includes but not limited to
scheduled cleanings and PMs.
Members are encouraged to pick-up after
themselves. Trash in Trash out
9
Benefits
Social Environmental Benefits
The day will come when the notion of car
ownership becomes antiquated. William Clay Ford
Jr., Chair, Ford Motor Company Ltd.
  • CarSharing addresses Social and Economic issues
  • Environmental Benefits
  • Complements mass-transit use
  • Reduces congestion
  • Reduces parking demands
  • Reduces fossil fuel consumption
  • Reduces greenhouse gas emissions and air
    pollution
  • LEED accredited program

10
Benefits
Social Environmental Benefits
  • CarShare Vehicle
  • Approx. 45 -60 members share 1 CarShare vehicle
    and 1 parking space
  • CarShare Vehicle
  • Approx. 45 -60 members share 1 CarShare vehicle
    and 1 parking space
  • CarShare Vehicle
  • Approx. 45 -60 members share 1 CarShare vehicle
    and 1 parking space

X
X
X
We all share the same vehicle . . .
X
X
X
X
X
  • Studies have shown 1 CarShare vehicle
  • Removes 9-13 private vehicles off the road
  • Eliminates the need for 11 to 26 parking spaces
  • 26 of CarShare members sold their personal
    vehicles
  • 53 avoided purchasing a vehicle

Sources Elliot Martin, PhDPost-Doctoral
Research Engineer, Transportation Sustainability
Research Center University of California,
Berkeley Susan A. Shaheen,
PhDResearch Associate, Mineta Institute Honda
Distinguished Scholar in Transportation,
University of California,
Davis, Acting Co-Director, Transportation
Sustainability Research Center (TSRC) University
of California, Berkeley NYC
Planning Board Amendment of 2010
11
Benefits
CarShare Performance Metrics
  • Member to car ratio
  • 45 60 drivers to 1 CarShare vehicle 1 parking
    space

Sources Shaheen, Cohen, and Chung. TRB 09-3688
NORTH AMERICAN CARSHARING A TEN-YEAR
RETROSPECTIVE
12
Benefits
Economic Benefits
The day will come when the notion of car
ownership becomes antiquated. William Clay Ford
Jr., Chair, Ford Motor Company Ltd.
Car Owner CarShare Member
Car payment 288 included
Finance charges 67 included
Insurance 84 included
Gas 100 included
License, registration tax 49 included
Maintenance 44 included
Parking 150 included
Total 782/mo Monthly cost based on small mid-size car 144/mo avg. A couple trips each week (6 two hour trips 2 four-hour trips)
  • Alternative to car ownership
  • All inclusive program
  • Includes gas
  • Includes insurance
  • Includes maintenance
  • Includes parking
  • Pay only for what you use

Sources Data based on 2010 AAA study of average
driving cost Zipcar
www.zipcar.com
13
CarShare Demographics
Target Markets
  • Potential CarShare users Individuals between the
    age of 21 to 64 years old with a credit card,
    internet access and a cell phone
  • Early adopters Individuals between the age of 25
    and 45 years old.
  • Mass-transit user Easy access to mass transit
    and a primary form for commute.

14
CarShare Demographics
Target Markets
  • CarShare Data
  • Females 56.1
  • Males 43.9
  • Target market by age 21 to 45
  • Target market by income 20K - 60K

83 of CarShare members are between the age of 21
- 45
Sources City Data.com / Shaheen, Cohen, and
Chung. TRB 09-3688 NORTH AMERICAN CARSHARING A
TEN-YEAR RETROSPECTIVE
15
Car Rental CarSharing
CarShares Value Proposition?
  • Minimal Start-up Cost
  • Fully Automated System
  • Paperless Keyless
  • Automated Reservation Billing
  • 24/7 Self-Service Operation (No Rental Counter or
    Location)
  • Real Time Fleet Management Information Control
  • High Utilization
  • Based on 24 Hours
  • Hourly Daily Rentals
  • 35 - 45 Utilization
  • Average RPU of 1,500 - 1,700 per vehicle

16
Car Rental CarSharing
The Cost Factor
  • Manageable and Controllable Start-up Cost

Capital Investment Car Rental
Fleet
Infrastructure
CarShare Technology
Website Development
?
?
You have the fleet
CarShare is not labor intensive!
What do you need to Start a CSO?
Need to purchase or lease the CarShare Technology
Need to develop your CarShare website
?
?
  • The main cost component of a CarShare business
    are
  • Fleet
  • Insurance
  • Personnel
  • CarShare Technology
  • Website Development

17
Car Rental CarSharing
CarShare Performance Metrics
  • 24/7 Self-Service Operation
  • Hourly or Daily Reservations (prefer more
    hourly use)
  • Average Utilization of 35 - 45
  • Based on 24 Hours
  • Average RPU per month of 1,500 - 1,700 per
    vehicle

CarShare Vehicle
Hours/Reservation
Revenue per Reservation
Revenue/Vehicle/Day
Average Utilization
Avg. Revenue Per Vehicle (RPU)
8.14
45.78
56.35
41.8
1,691
18
CarShare Industry
Market Segments
  • Retail
  • Alternative to Car Ownership
  • Corporate
  • Business to Business
  • Corporate Fleets
  • Employee Benefit
  • Governments Municipalities
  • Solution for Parking Issues Demands
  • Environmental Policies
  • Fleet Management Solution
  • Transportation Agencies
  • Compliments Mass-Transit
  • Fleet Management Solution
  • Institutions
  • Educational
  • Real Estate Developers
  • Tenant Amenity
  • LEED Accredited Program

Transportation trends. Smart Para-Transit Study
19
CarShare Industry
5 year Forecast
  • New Modes of CarSharing to Increase Revenue
    Potential in North America and Europe to 7
    billion dollars by 2016
  • 88 of North Americas CarShare Members are in
    the United States across 26 CarShare Programs

20
CarShare Industry
Car Rental / CarShare Operators
  • Hertz - Connect by Hertz
  • Global CarShare Operation
  • Enterprise - WeCar
  • Operates in North America
  • U-Haul U-CarShare
  • U.S. Operations
  • Avis Okigo
  • European Market (France)
  • Several Independent / Franchise Car Rental
  • Non-profits

21
Summary
CarSharing
  • Is this a business for you?
  • Existing infrastructure an overall back office
  • Recognizable brand
  • Existing customer base
  • Scalable and controllable start-up cost
  • Sustainable demand growth
  • Immature and unsaturated competitive field
  • High RPU
  • Maximum ROI

22
ABRAMS CARSHARING ADVISORS
Contact Us
For more information about ACA and Car/FleetShare
programs, please contact us at
ABRAMS CARSHARING ADVISORS A DIVISION OF ABRAMS
CONSULTING GROUP, INC. Corporate Office 3020
Westchester Ave Purchase, NY 10577 P
914.696.5100 F 914.696.5101 Web
www.abramscarsharing.com
Julian Espiritu P 914.696.5100 D
914.729.0058 F 914.696.5101 E-Mail
jespiritu_at_abramsconsulting.com
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