1. Carsharing in North America: Current Developments and Future Potential Adam Cohen Susan Shaheen, Ph.D. Innovative Mobility Research University of California, Berkeley MUTA International Forum October 4 th, 2007

2. 4 OCT 2007Current Developments & Future Potential 2 Overview About carsharingAbout carsharing State-of-the-industryState-of-the-industry Market structureMarket structure Growth obstacles & opportunitiesGrowth obstacles & opportunities Policy approachesPolicy approaches Future developmentsFuture developments

3. 4 OCT 2007Current Developments & Future Potential 3 Definition Carsharing Organizations Maintain a Fleet of Cars and Trucks in a Network of Locations.Carsharing Organizations Maintain a Fleet of Cars and Trucks in a Network of Locations. Allows Households and Businesses to Access Shared Fleet on As-Needed Basis, Generally for a Fee.Allows Households and Businesses to Access Shared Fleet on As-Needed Basis, Generally for a Fee. => Individuals Gain Benefits of Private Vehicle Use Without Costs and Responsibilities of Ownership.

4. 4 OCT 2007Current Developments & Future Potential 4 Carsharing Impacts Benefits include transportation, environmental, land-use, and social effects Region Number of Vehicles Replaced Due to One Carsharing Vehicle Percent of Participants Who Sold Private Vehicle After Joining Carsharing Percent of Participants Who Postponed or Avoided Vehicle Purchase Due to Carsharing Percent of Vehicle Kilometers Reduced Due to Carsharing Europe 4 to 10 15.6 to 34% 23 to 26.2% 28 to 45% North America 6 to 23 11 to 29% 12 to 68% 7.6 to 80% (Avg. of 44% across studies)

5. 4 OCT 2007Current Developments & Future Potential 5 Carsharing Worldwide (2006) Approximately 600 Cities 18 Nations on 4 Continents

6. 4 OCT 2007Current Developments & Future Potential 6 Number of Organizations

7. 4 OCT 2007Current Developments & Future Potential 7 U.S. Trends *September 2007: Estimated 185,000 Members in U.S.

8. 4 OCT 2007Current Developments & Future Potential 8 Canadian Trends *September 2007: Estimated 28,000 Members in Canada

9. 4 OCT 2007Current Developments & Future Potential 9 Growth Dynamics Percent Increase in Members (2003 –2007*) *2007 Estimated

10. 4 OCT 2007Current Developments & Future Potential 10 Member-Vehicle Ratios (2006) Worldwide average 20:1Worldwide average 20:1 Higher member-vehicle ratios in the United States, Switzerland, and GermanyHigher member-vehicle ratios in the United States, Switzerland, and Germany 40:1 in the United States40:1 in the United States 36:1 in Switzerland36:1 in Switzerland 33:1 in Germany33:1 in Germany Reasons: market diversification, business/fleet users, mobility insurance, multiple memberships, and venture capital investmentReasons: market diversification, business/fleet users, mobility insurance, multiple memberships, and venture capital investment

11. 4 OCT 2007Current Developments & Future Potential 11

12. 4 OCT 2007Current Developments & Future Potential 12 Member-Vehicle Ratios (Cont’d) U.S. members use vehicles less frequently & as mobility insurance.U.S. members use vehicles less frequently & as mobility insurance. Canadian members depend more on carsharing.Canadian members depend more on carsharing. Canadian members pay higher member fees/buy-ins & lower rates with little or no free miles.Canadian members pay higher member fees/buy-ins & lower rates with little or no free miles. U.S. members pay fewer/lower membership fees & high rates free miles.U.S. members pay fewer/lower membership fees & high rates free miles.

13. 4 OCT 2007Current Developments & Future Potential 13 Insurance (2005) In 2005, high insurance rates were a key challenge for most N.A. carsharing organizations. This had been a substantial obstacle to organizations interested in the college market.

14. 4 OCT 2007Current Developments & Future Potential 14 Insurance (2007) Although insurance remains expensive, it is no longer perceived as a substantial barrier. Although challenges remain, many large organizations now offer service and target college markets.

15. 4 OCT 2007Current Developments & Future Potential 15 Demographic Markets (2005) U.S.Canada Neighborhood 81.7% Commuter 0.1% Low Income 1.3% Business 12.3% College 4.6% Low Income 0.4% Business 3.2% College 0.4% Neighborhood 96.0%

16. 4 OCT 2007Current Developments & Future Potential 16 Government Fleets (2005-2006) Philly CarShare and City CarShare were the first to demonstrate the potential of offsetting government fleets with carsharing vehicles. (Philadelphia, PA and Berkeley, CA) Portland has a 5-year contact with Flexcar that allows city government employees to use its service, enabling the City of Portland to reduce its fleet and save an estimated 30% vs. its historic motor pool costs.

17. 4 OCT 2007Current Developments & Future Potential 17 College Market (2007) Incredible growth of the college market, particularly in the U.S. In the U.S., six carsharing organizations serve more than 50 colleges and universities.

18. 4 OCT 2007Current Developments & Future Potential 18 Summary Future Developments: Worldwide Exploratory efforts in 7 countries: China, Ireland, Israel, Kenya, Portugal, South Africa, and Zambia New launch in New Zealand in Auckland (Sept 07) Expansion into developing nations Growth of multi-national organizations Increased competition

19. 4 OCT 2007Current Developments & Future Potential 19 Summary: Top Trends in North America Public policy debate, particularly around taxation and parking Continued Growth Increased competition Fleet Reduction Strategy Continued growth of the college/university market

20. 4 OCT 2007Current Developments & Future Potential 20 Acknowledgements North American Carsharing OrganizationsNorth American Carsharing Organizations Dave Brook, Kevin McLaughlin, Adam Millard-Ball, Kamill WipyewskiDave Brook, Kevin McLaughlin, Adam Millard-Ball, Kamill Wipyewski Worldwide ExpertsWorldwide Experts University of California Transportation Center (UCTC)University of California Transportation Center (UCTC) California Department of Transportation (Caltrans)California Department of Transportation (Caltrans) Honda Motor CompanyHonda Motor Company

21. 4 OCT 2007Current Developments & Future Potential 21 www.innovativemobility.org