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Smart Car Sharing - Creating Smart Driving Habits
Car Sharing - Smart TransportationFirst introduced in Europe in the 1980s, car sharing moved to North America in 1994. It really began to catch on at the turn of the 21st century, powered mainly by two startups, Zipcar in Boston and Flexcar in Seattle. Zipcar took its shares public and became an overnight wonder on the Street when its stock leapt over 50 percent in its first day. In 2007, Zipcar and Flexcar merged. Zipcar went public and was an on the spot victory with Wall Street, with their shares jumping 56% on their first-day of trading. Car Sharing StartupsAmbitious car sharing startups have been springing up all around California with a vengeance. With names like JustShareIt, GetAround, and RelayRides, these startups have cars all over the city, to which they enable unattended access; charge their members by the hour; and require pre-scheduling of trips, both departure and arrival times.Car Rental and Manufacturing Moguls Take the BaitNoting the success of these startups compared to their own stagnating markets, major car rental companies have begun to move in on this new market. Hertz Connect from New York City managed to secure a few highway-model EVs to begin its car sharing fleet. Enterprise’s WeCar membership program is environmentally friendly and allows scheduled trips from as short as an hour to as long as a whole weekend or more.The US automobile manufacturing industry has also noticed the trend toward delayed car ownership due to its higher costs. As more young people show off their latest smartphones instead of their latest ride, driver’s licenses are being left out in the cold. Daimler was the first US car manufacturer to create a car sharing program using electric vehicles. How It WorksMost car sharing service models state that trips must be scheduled in advance and the car must be returned on time with absolutely no exceptions, although Car2Go from Daimler is one notable exception to this model.With car sharing options on the rise, the investment community has begun to sit up, take notice, and sniff the air for opportunity. They appear ready to acknowledge that our red-blooded love affair with the personal car might well be over. Investment funding of e-mobility, electric vehicles, and car sharing may well be right around the corner. |
If you live in or around a big city, chances are you’ve heard of Zipcar or one of the other car sharing companies that have begun to spring up in major population centers and universities around the country. Car sharing companies generally consist of an entrepreneur renting a fleet of cars, putting them in strategic locations around a busy city, getting a good insurance plan, and then building a base of members who schedule trips with those cars.