Car-Sharing – Numbers reveal the growing appeal; Renting cars by the hour is becoming big business
Source: The Economist
Car-sharing programs have been gaining a lot of popularity and building up momentum over the years, especially in urban environments such as Washington, DC, NYC, etc. The Economist has done a good coverage of the growing trend and here are some of the interesting nuggets that caught my attention:
- One rental car can take the place of 15 owned vehicles
- By 2016 the market will be worth $6 billion a year, half of that in America, with a total of some 10m users
- Zipcar already has 400,000 members, mostly in America where it is thought to have 80% of the market.
- A car owner doing 12,000 miles (19,000km) a year can save $1,834 by shifting to a car-sharing service
Car-sharing started in Europe and spread to America in the late 1990s, when the first venture opened in Portland, Oregon, a traditional hangout of tree-huggers. For years it was organised by small co-operatives, often supported by local government. It still has a green tinge. One in five new cars added to club fleets is electric; such cars are good for short-range, urban use. But sharing is no longer small.
Frost & Sullivan, a market-research firm, estimates that by 2016 the market will be worth $6 billion a year, half of that in America, with a total of some 10m users. Outside America, most of the growth is in Britain and other north European countries such as Germany. The market leader is a company called Zipcar, founded in Cambridge, Massachusetts, which is now headed for a public listing. Zipcar already has 400,000 members, mostly in America where it is thought to have 80% of the market. It recently bought Streetcar, the market leader in London, though competition authorities are still scrutinising that deal.
The sharing trend is now seeping into another prominent area of transportation – the bicycles. Many cities around the world, including London and Washington, DC, are beginning to install innovative bike-sharing programs that offer a great advantage for those who prefer to check the city by biking than by driving. Looks like the “sharing” trend is only going to intensity in the years ahead given the state of our poor economies and shrinking wallets! the societal, ecological and environmental benefits resulting from such sharing schemes are definitely a big plus for many more cities to consider implementing such schemes for car as well as bikes. After all didn’t we already know the saying “Sharing is Caring”.
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