Carsharing Growing Around the World with More User-Friendly Options

This article was originally published at Mobility Lab.

OPTION OPPORTUNITIES

Leaders can reach green initiatives and improve traffic if they find ways to promote how carsharing services are becoming more attractive.

Carsharing, which is projected in a new report to grow globally by about sixfold by 2024, is beginning to look like a reliable transportation option in places like the Washington D.C. region and beyond.

“The U.S. has fewer cities than Europe with comprehensive public transit services, which is usually – but not always – a condition for successful carsharing,” said Lisa Jerram, a co-author of Navigant Research’s latest global market analysis and forecast for carsharing.

Why is carsharing growing?

As the cost of a private car, along with the societal costs of endless traffic jams and smog-filled cities, continue to mount, there are new factors that carsharing companies could capitalize on to take even fuller advantage of greater paths to revenue and profitablility, including:

• Making carsharing more like one-way services that have already succeeded, such as ride-hailers Uber and Lyft and bikesharing. In Paris, Autolib’ gained 200,000 members in just three years. And Daimler’s car2go and BMW’s DriveNow have adopted the one-way model.
• Auto companies like Daimler and BMW are helping the carsharing industry in a big way, as their members make up about 1.3 million of the 2.4 million total global carsharing members. They are succeeding because they have deep pockets, which is needed to build comprehensive and reliable coverage and, in turn, membership.
• The rise in plug-in electric vehicles presents a way for carsharing services to differentiate themselves from competitors, allowing the companies to secure tax breaks in the form of zero-emission vehicle credits and helping city officials promote green initiatives like low-emission zones.

Jerram, who co-wrote Navigant’s report with John Gartner, said carsharing “needs visionary city mayors that see the benefits of all these types of new mobility offerings and work to bring them to their cities.”

The authors project that North America will have about 1.78 million carshare members at the end of 2015, Europe will have 1.77 million, and the Asia-Pacific region 1.15 million.

Why would people use carsharing?

There are increasingly more options in the Washington D.C. region, for instance, for people who, in the past, might have asked how they could possibly benefit from carsharing. For example:

• Car2go has hundreds of gas and electric smart cars around the city and was just recently introduced in neighboring Arlington, Virginia. Perhaps the biggest attraction is that car2go vehicles don’t need to pay for parking in metered spaces.
• Zipcar spots are easy to find everywhere either by simply looking into the street or using their mobile app or website. Gas, insurance, and roadside assistance are all taken care of by the company, so using the vehicles is a breeze.
• Enterprise Carshare has a wide variety of models within its fleet and several plans available for infrequent to regular customers.
• Hertz 24/7 appeals to the techies in the crowd, with NeverLost GPS systems and its use of Bluetooth. They allow one-way rentals and even offer truck and van rentals at all Lowe’s home improvement stores.

How are people using carsharing around the world?

From the Navigant report’s executive summary:

“Carsharing as a service has been around since the 1980s, and it began to become a big business roughly 15 years ago. As of 2014, there were well over 40 carsharing companies throughout the world with more than 2.4 million members.

“Global carsharing services revenue is expected to reach $1.1 billion in 2015. The two largest markets will be North America and Europe, which are projected to constitute 83 percent of this revenue. Japan and South Korea constitute a large portion of the Asia Pacific market today and are anticipated to see continued growth. Yet, China is projected to be the largest Asia Pacific market by 2024, driven by concerns over heavy congestion and pollution in urban areas.

“Total global revenue for carsharing services is forecast to reach $6.5 billion by 2024, with the Asia Pacific region taking the largest share at 34 percent. Europe will continue to be a very strong market with an estimated 32 percent of the total. Carsharing services revenue in North America is expected to drop to just 23 percent of the global total by 2024. Latin America and the Middle East and Africa will continue to lag behind in this industry.”

So do these findings mean that people in the U.S. are less thirsty than people in other countries for multiple on-demand transportation options?

Jerram said, “The U.S. has been a good market for carsharing and is a very strong market for ride-hailing services. But I do see Europe and Asia Pacific increasing carshare membership more rapidly than North America through 2024.” She added, “Europe is ahead of the U.S. in adopting a range of smart mobility solutions to minimize pollution and congestion in urban centers and to address climate change.

“The Asia Pacific market simply has more room for growth, especially in China. Although that market is not yet fully embracing this new, on-demand mobility concept, I think it will do so more over time as congestion and pollution problems worsen.”

Jerram did, however, praise the U.S. for doing well already in adopting carsharing and vehicle-sharing overall, “so there is real potential for this market to keep growing.”

This week, the Shared-Use Moblity Center and North American Bikeshare Association are hosting the Shared Use Mobility Summit in Chicago, where policy leaders are discussing these and other new developments in shared transportation options. Check out the hashtag #MoveTogether on Twitter to follow along.

Photo credit: car2go in Seattle, by Flickr user Atomic Taco, Creative Commons

How Capital Bikeshare Members Use System is Becoming Clearer

Here is my article published by Mobility Lab, and subsequently covered by CityLab, DCist, WTOP, and others.

Since Capital Bikeshare’s previous surveys in 2011 and 2012, members of the Washington D.C. region’s bikeshare program have grown a little older, become more widespread throughout the region (rather than simply being from the urban core), and become more prominently affluent white males.

This latest survey (see the full survey and executive summary here) – issued to Capital Bikeshare’s nearly 28,000 members, completed by 16 percent (4,314) in November 2014, and released publicly today – shows a lot of other interesting trends related to things like:

• significantly contributing to the region’s economy and business
• encouraging changes in commuting and general traveling behaviors, and
• considerably increasing economic savings for members.

Who uses Capital Bikeshare?

In 2011, 14 percent of members were 45 years or older, but in the new survey, 20 percent fill that age range. Seventeen percent lived outside of D.C. in 2011, but now 25 percent do, perhaps not surprising, with recent expansions in Virginia and Maryland.

The most striking increase in the average member profile is that 39 percent claimed $100,000 or more in household income in 2011, while now a full 50 percent state that as their current household income.

Two other intriguing findings are that members increasingly have their own bicycle and are members of carshare programs. In 2011, only 29 percent of members had their own bicycle, but 52 percent have one now. And only 9 percent had car2go or Zipcar memberships. That number has increased to 39 percent.

How are people joining Capital Bikeshare?

“Growth in membership numbers has been steady since the program launched in August 2010,” said Lori Diggins, owner of LDA Consulting, who performed these surveys and conducts transportation research for Commuter Connections, goDCgo, Capital Bikeshare, Mobility Lab and others.

Simply having all the stations throughout the region has been the number-one marketing tool for attracting new members – 30 percent said that’s how they became aware of the multi-jurisdictional public program. Word-of-mouth referrals (26 percent) also play a key role.

Social media and news articles about Capital Bikeshare have played a decreasing role in raising awareness about the system. However, that is likely due to the sheer increase in stations and riders around the region that are doing the “heavy lifting” on promoting the benefits of bikeshare.

Why are people joining Capital Bikeshare?

This reasoning hasn’t really changed much for members over the years. Ninety-four percent were motivated to join because it’s important that they be able to get around “easily and faster,” 84 percent say it’s important they have a “new and one-way travel option,” and 77 percent say it’s important they have a “fun way to travel.”

It also is generally clear that younger members are motivated by the ease of getting around and saving money while older members tend to be more interested in exercise, health and helping the environment.

How are members using Capital Bikeshare?

On average, members take 13 rides per month on the system. Fifty-nine percent make six or more trips and 24 percent take Capital Bikeshare 20 or more times monthly.

Seventy-four percent of members use Capital Bikeshare to get to or from work at least once a month. However, the biggest use is for entertainment purposes or socializing with friends (85 percent).

“The longer people are Capital Bikeshare members, the more uses they are finding for it,” Diggins said.

It’s clear that bikeshare has entrenched itself as a key cog in the D.C. transportation network. Sixty-four percent of members use it at least once a month to access Metrorail as a first-mile, last-mile option. However, far fewer are finding it useful in linking to buses or commuter rail.

How is Capital Bikeshare impacting the local economy?

TDM TAKEAWAY

Eighty-two percent of Capital Bikeshare members say they are more likely to patronize a business, restaurant, or shop if they are accessible by bikeshare.

For starters, 49 percent of members said they made trips on Capital Bikeshare during the month prior to taking the survey that they would not have made otherwise – a phenomenon called “induced trips.”

Further, businesses are simply more attractive to Capital Bikeshare members when they are near bikeshare stations. A whopping 82 percent said they are either “somewhat more likely” or “much more likely” to patronize a business, restaurant, or shop if they are accessible by bikeshare.

“Some even said they would not go to these places – period – if there is no Capital Bikeshare station nearby,” Diggins added.

How is Capital Bikeshare impacting traffic in the region?

TDM TAKEAWAY

Capital Bikeshare members take 4.4 million miles of driving off the region’s roads annually.

Eighty-four percent of members said they increased their bicycle use since joining the program. Eight percent sold a household vehicle and didn’t replace it, with 76 percent of those people saying Capital Bikeshare played an important role in the decision. More than half of the respondents who reduced their household vehicles now live in “car-free” households, having eliminated their only vehicle.

On average, members reduced 158 driving miles per year. That equates to 4.4 million miles of driving eliminated annually from the region’s roads.

Even when Capital Bikeshare members aren’t using the system to get to and from work, only 11 percent said their primary mode was driving alone. That’s pretty astounding compared to the regional average of 68 percent who primarily drive alone to work.

How much money do Capital Bikeshare members save by using the system?

On average, members save $13.65 per week on transportation costs. That equates to $710 per member per year. For members who make 11 or more trips per month, the average monthly savings ramps up to $1,002.

Collectively, members save $19.6 million per year on personal travel costs.

So, what’s next?

Ninety-one percent of members are interested in a single-card system that would allow them to check out bikes and ride public transit.

And a high percentage of members would like more docks at existing stations, more stations in residential neighborhoods, and expansion in areas where Capital Bikeshare is already operating.

To sum it up: yes, you are seeing more big red bikes these days. The expanding Capital Bikeshare system is helping people take notice that bikeshare is rapidly becoming a key element in building the transportation network of the future.

See more about the survey in Mobility Lab’s Research Catalog. Photo by Elvert Barnes. Charts courtesy of LDA Consulting.