Transcript CarSharing:

Presented by: ABRAMS
CARSHARING ADVISORS
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
ABRAMS CARSHARING ADVISORS
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.
ABRAMS CARSHARING ADVISORS
History of CarSharing



Although CarSharing dates back to
the 1940s in Europe, more successful
CarSharing programs launched in
Germany and Switzerland in the mid1980s.
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
ABRAMS CARSHARING ADVISORS
CarShare Growth
ABRAMS CARSHARING ADVISORS
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
ABRAMS CARSHARING ADVISORS
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 member’s usage and bills their credit card.
ABRAMS CARSHARING ADVISORS
Policies & Procedures
Basic Member Rules:
Only CarShare members are authorized
to operate the vehicles
Vehicles must be returned to the same
locations and parking spaces
Members are expected to return the
vehicles on time or are subject to
penalties
CSOs are responsible for:
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.
CSO provide insurance coverage up to
the minimum state-mandate, which vary
by state and CSO.
CSO provides assigned parking
No Smoking in any CarShare Vehicles
Members are encouraged to pick-up
after themselves. Trash in – Trash out
CSO are responsible for all vehicle
maintenance and service. This includes but
not limited to scheduled cleanings and
PMs.
ABRAMS CARSHARING ADVISORS
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
o Complements mass-transit use
o Reduces congestion
o Reduces parking demands
o Reduces fossil fuel consumption
o Reduces greenhouse gas emissions
and air pollution
o LEED accredited program
ABRAMS CARSHARING ADVISORS
Social & Environmental Benefits
CarShare Vehicle:

Approx. 45 -60 members share 1 CarShare vehicle and 1 parking space
X
We all share the
same vehicle . . .
X
X
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
ABRAMS CARSHARING ADVISORS
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
ABRAMS CARSHARING ADVISORS
Economic Benefits
“The day will come when the notion of car ownership becomes antiquated.”
William Clay Ford Jr.,
Chair, Ford Motor Company Ltd.
• Alternative to car ownership
• All inclusive program:
• Includes gas
• Includes insurance
• Includes maintenance
• Includes parking
• Pay only for what you use
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
$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)
Total:
Sources: Data based on 2010 AAA study of average driving cost
Zipcar www.zipcar.com
ABRAMS CARSHARING ADVISORS
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.
ABRAMS CARSHARING ADVISORS
Target Markets
o Females = 56.1%
o Males = 43.9%
Females
CarShare Data
52.1%
Males
CarShare Data
47.9%
 Target market by age = 21 to 45
56.1%
43.9%
0.0%
20.0%
40.0%
60.0%
o Target market by income = $20K - $60K
Target Age
60 to 70
50 to 60
4.9%
11.2%
40 to 50
83% of CarShare members are
between the age of 21 - 45
16.0%
30 to 40
29.5%
20 to 30
Sources:
City Data.com / Shaheen, Cohen, and Chung. TRB 09-3688 NORTH AMERICAN
CARSHARING: A TEN-YEAR RETROSPECTIVE
37.6%
0.0%
10.0%
20.0%
30.0%
40.0%
CarShare’s 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
ABRAMS CARSHARING ADVISORS
The Cost Factor

Manageable and Controllable Start-up Cost
Capital Investment
Need to purchase
Need
What
todo
develop
you
CarShare
You
or lease
haveisthe
the
not
need
your CarShare
to Start a
labor
CarShare
fleet
intensive!
website
CSO?
Technology
Car Rental
Fleet
✓
Infrastructure
✓
CarShare
Technology
✓
Website
Development
✓
The main cost component of a CarShare business are:
 Fleet
 Insurance
 Personnel
 CarShare Technology
 Website Development
ABRAMS CARSHARING ADVISORS
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
8.14
Revenue per Reservation
$45.78
Revenue/Vehicle/Day
$56.35
Average Utilization
Avg. Revenue Per Vehicle (RPU)
41.8%
$1,691
ABRAMS CARSHARING ADVISORS
Market Segments

Retail





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


Alternative to Car Ownership
Educational
Real Estate Developers

Tenant Amenity

LEED Accredited Program
ABRAMS CARSHARING ADVISORS
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 America’s CarShare Members are in the United States across 26
CarShare Programs
ABRAMS CARSHARING ADVISORS
Car Rental / CarShare Operators

Hertz - Connect by Hertz


Enterprise - WeCar


Operates in North America
U-Haul – U-CarShare


Global CarShare Operation
U.S. Operations
Avis – Okigo

European Market (France)

Several Independent / Franchise Car Rental

Non-profits
ABRAMS CARSHARING ADVISORS
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
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: [email protected]
ABRAMS CARSHARING ADVISORS