Presented by: ABRAMS CARSHARING ADVISORS
Why CarSharing? Why Now?
“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
"Be Ahead Of The Curve!"
ABRAMS CARSHARING ADVISORS
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.
What is CarSharing?
ABRAMS CARSHARING ADVISORS
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
History of CarSharing
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CarShare Growth
ABRAMS CARSHARING ADVISORS
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
How Does CarSharing work?
ABRAMS CARSHARING ADVISORS
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.
How Does CarShare Technology Work?
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Policies & Procedures
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
No Smoking in any CarShare Vehicles
Members are encouraged to pick-up after themselves. Trash in – Trash out
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
CSO are responsible for all vehicle maintenance and service. This includes but not limited to scheduled cleanings and PMs.
Basic Member Rules:
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CarSharing addresses Social and Economic issues
Social & Environmental Benefits
“The day will come when the notion of car ownership becomes antiquated.” William Clay Ford Jr.,
Chair, Ford Motor Company Ltd.
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
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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
We all share the same
vehicle . . .
We all share the same
vehicle . . .
CarShare Vehicle: Approx. 45 -60 members share 1 CarShare vehicle and 1
parking space
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
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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
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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)
Sources: Data based on 2010 AAA study of average driving cost Zipcar www.zipcar.com
• Alternative to car ownership• All inclusive program:
• Includes gas• Includes insurance• Includes maintenance • Includes parking
• Pay only for what you use
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Target Markets
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Target Markets
Sources:City Data.com / Shaheen, Cohen, and Chung. TRB 09-3688 NORTH AMERICAN CARSHARING: A TEN-YEAR RETROSPECTIVE
83% of CarShare members are between the age of 21 - 45
83% of CarShare members are between the age of 21 - 45
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
CarShare’s Value Proposition?
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Manageable and Controllable Start-up Cost
The Cost Factor
✓
✓
✓
✓
You have the fleet
You have the fleet
CarShare is not labor
intensive!
CarShare is not labor
intensive!
What do you need to Start
a CSO?
What do you need to Start
a CSO?
Need to purchase or
lease the CarShare
Technology
Need to purchase or
lease the CarShare
Technology
Need to develop your
CarShare website
Need to develop your
CarShare website
The main cost component of a CarShare business are:
Fleet
Insurance
Personnel
CarShare Technology
Website Development ABRAMS CARSHARING
ADVISORS
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 Performance Metrics
8.14
$45.78
$56.35
41.8%
$1,691
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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
Market Segments
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*Transportation trends. Smart Para-Transit Study
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
5 year Forecast
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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
Car Rental / CarShare Operators
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Is this a business for you?
CarSharing
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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
Contact Us
For more information about ACA and Car/FleetShare programs, please contact us at:
ABRAMS CARSHARING ADVISORSA DIVISION OF ABRAMS CONSULTING GROUP, INC.Corporate Office3020 Westchester AvePurchase, NY 10577P: 914.696.5100F: 914.696.5101Web: www.abramscarsharing.com
Julian EspirituP: 914.696.5100D: 914.729.0058F: 914.696.5101E-Mail: [email protected]
ABRAMS CARSHARING ADVISORS