Skip to main content icon/video/no-internet

The principle of car sharing is simple: individuals gain the benefits of private vehicle use without the costs and responsibilities of ownership. Instead of owning one or more vehicles, a household or business accesses a fleet of shared-use autos on an as-needed basis. Individuals gain access to vehicles by joining an organization that maintains a fleet of cars and light trucks in a network of locations. Vehicles are most frequently deployed from lots located in neighborhoods, at transit stations, or at businesses. Car sharing members typically pay for use through hourly rates and subscription-access plans. Most car sharing operators manage their services with advanced technologies, which may include automated reservations, smart-card vehicle access, and real-time vehicle tracking.

Car sharing members have a variety of reasons for joining car sharing. Common reasons to join car sharing include the following:

  • Environmental awareness
  • Cost savings over owning a private vehicle
  • Parking (maintaining vehicle access without the cost or difficulty of locating parking in an urban setting)
  • Mobility insurance (access to a vehicle in case either a personal vehicle or commuting option is unavailable)
  • Access to an additional vehicle (member who owns a primary vehicle and has a periodic need for a second or third vehicle but does not need to own an additional vehicle)
  • Access to a vehicle on an as-needed basis (individuals selling a vehicle who retain a periodic need for a car and individuals without a vehicle who need periodic vehicle access)

Common goals among car sharing organizations include (1) reducing congestion and auto ownership; (2) providing cost savings since customers pay per use, sharing the costs of the vehicle lease, maintenance, repair, and insurance; (3) reducing emissions by lowering overall vehicle miles (kilometers) traveled and using clean fuel vehicles (for example, gasoline–electric hybrid cars); (4) facilitating more efficient land use (for example, car sharing reduces the number of parking spaces needed); and (5) increasing mobility options (for example, low-income market segment) and connectivity among transportation modes.

As car sharing has evolved, a number of niche markets have developed. A few of these include consumer car sharing, college/university car sharing, personal vehicle sharing (also known as P2P), and fleet-based services. In consumer car sharing, a company owns a fleet of vehicles to provide car sharing services for its members. College/university car sharing is very similar to consumer car sharing except that the car sharing operator's goal is to provide vehicle access to university students (typically 18–25 years of age) and university staff and faculty. Personal vehicle sharing provides short-term access to privately owned vehicles. In personal vehicle sharing, private vehicle owners make their cars available for other drivers to rent. In fleet-based car sharing, government agencies and employers replace their own private fleets with car sharing services that can either be used exclusively as fleet cars or nonexclusively (fleet cars shared with ordinary car sharing users).

In addition to niche markets within car sharing, three different categories of operators provide car sharing services. These include automakers, rental brands, and car sharing brands. As of 2012, 10 automakers provided car sharing services or vehicles with factory-equipped telematics for car sharing. As of 2012, five rental-car brands were providing car sharing services worldwide. As of 2012, two automakers and three rental car brands were providing car sharing services in North America.

...

  • Loading...
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles

Sage Recommends

We found other relevant content for you on other Sage platforms.

Loading