Year 2008 UCD- ITS- RP- 08- 16
Carsharing: A Guide for Local Planners
2008- 05- 01
Authors
Adam Cohen, Susan Shaheen, and Ryan McKenzie
Institute of Transportation Studies ◦ University of California, Davis
One Shields Avenue ◦ Davis, California 95616
PHONE: ( 530) 752- 6548 ◦ FAX: ( 530) 752- 6572
WEB: http:// www. its. ucdavis. edu
May/ June 2008
Carsharing: A Guide for Local Planners
By Adam Cohen, Susan Shaheen, and Ryan McKenzie
Transportation issues can create seemingly no- win conflicts for planners, whether it's dealing with traffic demand
management, wrangling over parking requirements, addressing quality of life issues that accompany too much
traffic, or, most recently, trying to reduce vehicle emissions to forestall climate change. But, planners, take note: A
new " product- as- service" approach to vehicle use, called carsharing, is springing up in major metropolitan markets,
smaller districts, and university campuses all across the country. Where the conditions are right to support
carsharing, these programs can give planners another flexible tool to help address these issues in their communities.
WHAT IS CARSHARING?
The principle of carsharing is simple: Individuals gain the benefits of private vehicle use without the costs and
responsibilities of ownership. Rather than owning one or more vehicles, a household or business has access to 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 that are parked in designated, leased spaces in a network of locations.
Vehicles are accessed on an as- needed basis, and members are typically charged each time they use a vehicle
( Shaheen and Cohen 2007).
Participants are not required to carry any insurance of their own; membership includes full liability and collision
coverage on the company policy. Gasoline is also included; vehicles are equipped with a gas card for use at any
retailer.
Short- Term Use
Because carsharing is a flexible alternative, serving a variety of markets, many carsharing programs offer a variety
of vehicles, including sedans, small SUVs, and pickup trucks. Most members utilize the carsharing vehicles for short
trips of 30 minutes to four hours; however, some programs offer special rates for daily, overnight, and weekend
rentals when longer trips are required. Vehicles can be reserved minutes or months in advance for specific blocks of
time, online or by phone. Prices typically range from $ 4 to $ 11 per hour. Lower hourly rates are frequently
accompanied with per mile charges ranging from 9 cents to 40 cents a mile, and higher rates are typically bundled
with an allotment of " free miles."
To use a carsharing vehicle, members simply walk to the car at the reserved time, use a wireless security keycard to
unlock the door, and drive as usual. As the reservation ends, they return the car to its exclusive- use parking space,
lock it with their keycard, and walk away. An onboard computer collects and wirelessly transmits trip data. Charges
are either automatically billed to the member's credit card or deducted from their bank account.
Carsharing is more cost- effective than owning or leasing for cars used less than 7,000 to 10,000 miles per year,
depending on location ( Litman 2000; Reynolds and McLaughlin 2001; Calgary Alternative Transportation Cooperative
n. d.). And although carsharing is not well suited for daily commuter trips, this on- demand service can replace a
household's second car — or even make a car- free home feasible — for those who don't need to drive everyday,
including people who can ride transit, walk, or bike to work or school.
Program History
While formal carsharing organizations have operated for more than 20 years in Europe, the first U. S. service was
introduced in 1998, in Portland, Oregon. A total of 18 nonprofit and for- profit operators have since launched
programs in 30 states, serving more than 20 major metropolitan markets and dozens of college campuses. As of
January 2008, more than 235,000 members were sharing approximately 5,250 vehicles in the United States
( Shaheen and Cohen, unpublished data).
Although for- profit carsharing organizations such as ZipCar account for 22 percent of carsharing programs in the
United States, they account for 77 percent of the industry's membership and almost 84 percent of the vehicles
deployed. Nevertheless, nonprofit organizations in large cities such as San Francisco, Chicago, and Philadelphia still
account for almost 23 percent of the industry's membership and 16 percent of the industry's total fleet size. In
recent years, both for- profit and nonprofit startups have established more modest networks in mid- sized and smaller
markets including Madison, Cleveland, Minneapolis, and Austin.
Profile: I- GO Car Sharing, Chicago
I- GO Car Sharing was founded in March of 2002 by the Center for Neighborhood Technology ( CNT), a " think- and-do
tank" dedicated to building more livable, sustainable urban communities. Inspired by the success of car
sharing in Europe, CNT introduced car sharing to Chicago to reduce greenhouse gas emissions and air pollution
from the transportation sector, urban traffic congestion, and household transportation costs.
The City of Chicago, recognizing that car sharing services could fill a vital — and at that point empty — niche in
the city's transportation network, provided I- GO's initial financing, allowing the organization to begin operations
with four cars in two Chicago neighborhoods. Since that time, the organization has grown to serve more than
8,000 members with cars in 32 Chicago neighborhoods, as well as the adjacent suburbs of Oak Park and
Evanston.
I- GO is true to its nonprofit environmentalist roots, and strives to
incorporate its sense of environmental and social responsibility into
all aspects of its operations. Every car in I- GO's fleet meets or
exceeds the California Air Resources Board LEV II Low Emission
Vehicle standards, and nearly one- third of the fleet is hybrid
gasoline- electric vehicles.
I- GO works closely with city planners, other government entities, and
the private sector to maximize the public benefits of car sharing. I-GO
provides car sharing services to the City of Chicago Department
of Fleet Management to reduce costs to the city of operating its fleet
for city employees. The program recently completed its first year of operation, with the city maintaining exclusive
use of two I- GO vehicles during regular business hours, and using other I- GO vehicles on an as- needed basis in
the same way as other I- GO members.
The city's Department of Planning, too, has recognized the benefits that I- GO car sharing provides, and I- GO
coordinates with city planners and private developers to incorporate car sharing into planned developments. In
addition, developers throughout the city are incorporating I- GO as a component of achieving LEED certification
for their buildings. With two buildings in Chicago already having achieved certification — including the
Merchandise Mart, the largest commercial building in the United States, certified LEED- EB Silver last November
— and several more underway, I- GO expects to play a growing role in contributing toward LEED certification for
new and existing buildings in the future.
Car sharing providers rely primarily on surface lots and garages to secure parking for car sharing vehicles. As car
sharing continues to grow towards the goal of a ubiquitous presence in urban areas, however, competition for
parking will become increasingly intense. I- GO has pioneered the use of on- street parking spaces for car sharing
cars in Chicago, piloting the concept with — four locations in — three neighborhoods.
The ability of car sharing to deliver substantial environmental, social, and economic benefits, although seen by
many skeptics as an untested claim only a few years ago, now seems beyond doubt. I- GO has taken an approach
which understands car sharing as a component of the regional transportation network, and emphasizes close
collaboration with planners, government agencies, elected officials and the private sector in order to make good
on this promise. In the case of I- GO, this collaboration has resulted in individual members reducing their
transportation costs by as much as $ 4,000 a year, and a reduction of 9,725 metric tons of greenhouse gas
emissions over the life of the program.
For more information about I- GO, visit www. igocars. org or e- mail info@ igocars. org.
Joseph Grant
Grant is the research and program associate at I- GO, Chicago's first car sharing program.
Image: Three current I- GO members and an I- GO car at the Logan Square Blue Line location. Photo by Matthew
Gilson.
THE POSITIVE IMPACTS OF CARSHARING
Carsharing offers a range of individual and community benefits. It serves as a " missing link" in the spectrum of
alternative travel choices, filling the occasional service gaps left by other more environmentally friendly
transportation modes such as walking, cycling, and transit, and increasing the viability of a largely car- free lifestyle.
Individual Benefits
Most immediately, carsharing can offer tremendous economic savings. The average car costs more than $ 500 per
month to own and operate ( American Automobile Association ( AAA) 2007), which contributes to U. S. households
spending nearly 20 percent of their income on transportation — second only to the cost of housing. Furthermore,
according to AAA estimates, gas prices have risen nearly 20 percent from a year ago. The increased costs of auto
ownership and uncertainty about future operating costs are encouragements to look for ways to reduce individual
transportation expenditures.
Carsharing is one alternative. Rather than paying the ownership and fixed operating costs associated with a vehicle,
including insurance, license, registration, taxes, depreciation, finance charges, and other expenses, carsharing
members pay only for the time and distance they drive. The fixed operating costs are shared among a larger group
of users. This all- inclusive bundle of services — vehicle use, insurance, and gasoline — is typically offered for less
than $ 11 an hour.
Carsharing also offers simplicity and freedom from worrying about car washing, oil changes, preventive maintenance,
unpredictable repair needs, annual vehicle registration, and even the time and stress involved in car shopping.
Shared cars also generate social benefits, creating an affordable alternative to ownership for lower- income workers,
students, and seniors. With on- demand access to safe and reliable vehicles that include full insurance coverage,
those otherwise at risk of being marginalized can affordably maintain their mobility and participate fully in society.
Finally, the carsharing lifestyle often includes daily physical activity, such as walking to catch the bus, which supports
a more active lifestyle for many of its users.
Community Benefits
Carsharing members report a higher degree of environmental awareness after joining a program ( Lane 2005). Their
collective changes in car ownership and personal travel behavior promote a range of community planning goals,
including support for walkable communities and alternative transportation, reduced parking demand, a reduction in
criteria air pollutants and greenhouse gas ( GHG) emissions, and even local economic development.
According to recent North American studies and member surveys, each carsharing vehicle removes an average of 15
privately owned cars from the community, as participants sell a vehicle or forgo a planned purchase. The resulting
decrease in local parking demand creates opportunities to permanently reallocate the land for additional green space,
new mixed- use development, or other community needs. Furthermore, the vehicles these members sell or avoid
purchasing tend to be the oldest, most polluting, and least reliable on the road. They are replaced by a relatively
small number of high- efficiency, low- emission vehicles, including gasoline- electric hybrid cars, creating even greater
improvements in local air quality, noise, and emissions.
Former car owners change their daily travel behavior dramatically after joining, increasing their transit use, walking,
and cycling, while reducing their total vehicle miles traveled ( VMT) by an average of 44 percent ( Lane 2005; ZipCar
2005; City CarShare n. d.; McLaughlin and Reynolds 2001; Litman 2000). Previously carless customers tend to use
carsharing as a substitute for car rental, taxis, and other car- centered modes, rather than as an alternative to
transit, walking, or cycling. Although their total VMT rises modestly, these gains are small in comparison to the
overall mileage declines of other members.
These behavioral changes, combined with efficient daily use of the fleet, allow carsharing companies to successfully
serve members at an average ratio of almost 45 people per vehicle ( unpublished data Shaheen and Cohen).
Transportation is a major contributor of CO2 and other greenhouse gas emissions, accounting for approximately 27
percent of total anthropogenic emissions in the United States and 14 percent globally ( Shaheen and Lipman 2007).
According to PhillyCarShare, the combination of driving hybrids, driving less, owning fewer cars, and making fewer
cold starts can yield an impressive 95 percent reduction in auto emissions per participant ( unpublished data, Lane).
In Europe, carsharing is estimated to reduce the average user's carbon dioxide ( CO2) emissions by 40 to 50 percent
( Ryden and Morin 2005). In 2007, Communauto announced a 13,000- ton reduction in CO2 emissions as a result of
its 11,000 carsharing users in the province of Quebec, Canada. Communauto calculates that each carsharing user
reduces his or her distance traveled by car by 2,900 kilometers per year on average. Furthermore, they anticipate
with a potential market of 139,000 households in Quebec that annual CO2 emission reductions could be as high as
168,000 tons per year ( Communauto 2007).
From an economic development perspective, shared vehicles are an attractive amenity for both residential and
commercial customers. In some cases, developers and property managers will enter guaranteed minimum revenue
contracts with a carsharing company in exchange for having specific types of vehicles on site — sometimes for their
tenants' exclusive use during certain hours. In other cases, the size and density of the district ( a city center, for
example) supports multiple general- use vehicles within seconds of any address. By adding an additional
transportation alternative, carsharing can provide urban properties with increased accessibility, making them more
attractive sites for tenants who might otherwise look for a suburban location.
Profile: PhillyCarShare, Philadelphia
PhillyCarShare, a nonprofit organization, is Philadelphia's premier carsharing service.
PhillyCarShare was founded in 2002 by five Philadelphians set on reducing automobile dependence citywide. The
premise was simple: automobiles, while necessary in our society, are abundantly overused because they are
priced inappropriately. Once a car is owned, almost all of its costs become " sunk" and unrelated to miles driven.
Thus, driving seems cheap on the margin. Consider that a 10- mile roundtrip in Philadelphia costs $ 4 on public
transportation but only 98 cents in gas.
PhillyCarShare sought to change travel behavior by flipping these
economics, making cars virtually free to access, and making costs
related to how much one drives. PhillyCarShare's founders envisioned
low- emission vehicles on every block, available by the hour and
round the clock, to replace personally owned cars. Members would
gain the opportunity to save money by driving less, plus enjoy access
to dozens of models at a moment's notice, steps from their front
doors.
In practice, PhillyCarShare has led the U. S. carsharing industry. It
has worked to introduce innovations such as free memberships, a
fleet of more than 50 percent hybrid vehicles, service to 18- year- olds, cars on every block, free trips on rail
transit to users of PhillyCarShare vehicles parked at over 40 stations, child seats, rates from just $ 3.90 per hour,
and a debit billing system that enables even the poorest households to join.
The results have been northing short of astounding. From its humble all- volunteer beginnings with nine members
and two cars, PhillyCarShare has grown into the largest regional carsharing organization in the world.
PhillyCarShare's 35,000 local members report owning 13,000 fewer cars and driving 42 percent fewer miles, and
those who formerly owned vehicles report choosing to walk more ( 40 percent), ride public transit more ( 34
percent), bike more ( 18 percent) and take taxis more ( 13 percent). Members have logged 4 million miles in
hybrids that pollute 90 percent less than conventional models, and have boosted the local economy by $ 90
million by forgoing car ownership and spending the money locally rather than pouring it into the global auto
industry. Plus, 75 percent of members have reported choosing where they live based on the locations of
PhillyCarShare pods, highlighting the impact that PhillyCarShare has on neighborhood livability and quality of life.
PhillyCarShare, as a local nonprofit organization, recognizes the interconnectedness of communities, culture, and
the environment, and thus invests in Philadelphia in a myriad of ways. Its Community Improvement Program
helps civic- minded PhillyCarShare members contribute in local communities — for block clean- ups, tree
plantings, community events, computer training for the elderly, and winter coat and toy drives. PhillyCarShare's
" Key to the City" affinity program promotes local business, and PhillyCarShare's events regularly highlight local
artists and musicians. In May 2008, PhillyCarShare is introducing " Walk Ride Share Philadelphia," a monthlong
citywide initiative that encourages participants to put their cars in " park" in return for free PhillyCarShare driving
credits, free walking shoes, a free transit pass, and more — all to demonstrate the ease and convenience of
living car- free in the city.
PhillyCarShare, by dedicating itself to innovation and its civic mission, is reducing the region's carbon footprint,
making Philadelphia less about cars and more about people.
For more information about PhillyCarShare, please view www. phillycarshare. org or e- mail info@ phillycarshare. org.
IS CARSHARING A POSSIBILITY FOR YOUR COMMUNITY?
Given the many individual and community benefits of carsharing, planners may ask whether their communities can
successfully host a program. Carsharing is most suited to walkable, high- density, mixed use urban areas with
convenient transit nearby. It is generally an intensely local service; each car mainly serves customers within a
quarter to half- mile radius or a five to 10 minute walk. Accordingly, there will be large areas of any metro area that
simply cannot sustain even a low level of carsharing service without ongoing subsidy.
In nearly any region, however, there are pockets of more intense land use — the central business district, dense
older neighborhoods, new planned unit developments, burgeoning university and medical campuses — that are the
focus of economic development efforts. These areas often struggle with parking and traffic challenges that call for
innovative solutions. Targeted carsharing programs can be successful in these niche markets. Examples of these
programs can be found in such smaller communities as Rutledge, Missouri; Aspen, Colorado; and Bellingham,
Washington.
Urban carsharing members have tended to be well educated and socially and environmentally aware. Early adopters
of carsharing were typically in their 30s and 40s, with middle to upper middle incomes ( Millard- Ball, 2005).
Increasingly, however, there has been a significant growth in carsharing among younger drivers as operators have
expanded services to university campuses.
In the last few years, many carsharing companies have reduced minimum age requirements from 21 to 18 years of
age and have expanded aggressively on university campuses across the country. As of the fall of 2007, carsharing
services were available at more than 50 colleges and universities across the United States ( unpublished data
Shaheen and Cohen). Membership growth in this demographic builds awareness and social support for the carsharing
lifestyle. Industry observers anticipate increasing market acceptance and demand as students leave campus and
enter the workforce.
PUBLIC SUPPORT FOR CARSHARING
While it isn't the job of planners to get carsharing started, and carsharing is not a great match for every community,
program benefits suggest that planners and their communities gain when a local carsharing program is started. What
are the challenges facing a potential carsharing program in an untested region?
For the operator, carsharing can be risky business. Though companies have succeeded in attracting a healthy
customer base in many large metropolitan areas, these capital- intensive programs face many hurdles in mid- sized
and smaller regions.
New locations should not expect to attract experienced companies without committing to large, long- term revenue
guarantees. No carsharing program has yet developed brand franchise opportunities, so local start- ups may need
months or years to develop the basic technical, legal, and marketing infrastructure and education required to begin
service. However, a number of carsharing operators and consultants now provide technical support and expertise,
which can dramatically reduce the amount of time it takes to start up a new program.
Whether the operator is for- profit or nonprofit, achieving a significant level of market penetration before running out
of capital is a daunting task — especially in places with smaller urban populations, lower densities, and more
abundant, lower cost parking.
Prospective members are often initially skeptical about the feasibility of selling their cars. Even motivated,
progressive- minded individuals who " get it" will need time and multiple exposures to the idea of carsharing to
overcome uncertainty about such a fundamental change in their lifestyle ( Shaheen 1999). Enthusiastic potential
joiners may also wait in the wings for years: " I'll join as soon as my ' 98 Jetta dies." And potential business customers
may also adopt a wait- and- see attitude, signing on only after the concept has been embraced by a respected
corporate or institutional leader.
Finally, the time and effort required to identify and secure leases for free or reduced- cost parking spaces can be an
unexpected source of delays and frustration.
Clayton Lane, AICP
Lane is the Deputy Executive Director of PhillyCarShare.
Image: A large PhillyCarShare pod at 17th and Pine Streets in Philadelphia. Photo courtesy PhillyCarShare.
Given these challenges, what can planners and municipal governments do to support the development of carsharing
in their communities?
Become a Visible Advocate and Partner for Carsharing
Endorsements and outreach from local governments, nonprofits, and community institutions will add to public
awareness and legitimacy for a fledgling ( or future) carsharing operation. Co- promotions, joint press releases, and
media events featuring prominent local figures can help convince potential participants to join, accelerating the
development of a viable local market. In 2004, Arlington County, Virginia, sponsored a multi- faceted carsharing pilot
program that attracted more than 2,500 participants. More than 85 percent of surveyed members " felt more
confident joining a carsharing company," knowing they were partnered with the county government ( Arlington
County Commuter Services 2005). Similarly, the decision by the City of Philadelphia to replace its municipal fleet
with carsharing vehicles was an important milestone in the membership growth of PhillyCarShare ( Lane 2008).
Include Carsharing in Applications for Grants, Loans, and Other Incentives
Planners and allied professionals can create or encourage private- sector incentives to support carsharing through
their evaluation criteria for distributing public dollars, providing loan guarantees, or offering administrative approvals.
Examples of how carsharing is being encouraged in specific programs include the following:
􀁺 Developers pursuing LEED green building certification for new construction can earn a point by providing
designated parking for carshare services ( USGBC 2005).
􀁺 The Ohio Department of Development awards grants of up to $ 5 million in its Ohio Job Ready Sites program,
which is designed to " bolster the state's inventory of available facility locations served by utility and
transportation infrastructure" ( Ohio Department of Transportation 2008a). The 2008 proposal scoring system
includes points for applicants that have " committed to make a car sharing program available" at their technical
center/ research laboratory site ( Ohio Department of Transportation 2008b).
Provide On- Street Parking
In most cities, nearly 100 percent of curbside parking is designated for people who choose to own a car. By providing
designated on- street parking for shared- use vehicles, cities can dedicate a small part of that public space to the
urban residents who choose to share a vehicle.
Low or no- cost parking helps to reduce carsharing operator costs, resulting in lower rates for residential users, fewer
vehicles on the road, increased parking availability, and lower emissions.
For potential participants, on- street parking provides safe, convenient, and highly visible locations that increase user
confidence and awareness of the service, typically leading to increased rates of local membership.
Examples of municipal parking policies for carsharing include the following:
􀁺 Seattle has parking stalls that are designated to carsharing vehicles as a class, similar to taxi zones.
􀁺 Portland, Oregon, created " option zones" to designate on- street carsharing parking, denoted by orange public
art poles that attach to parking meters.
􀁺 The Austin, Texas, city council passed Resolution 20060928- 069, providing free parking spaces and exempting
carsharing cars from city parking meter charges ( City of Austin 2006).
􀁺 Parking spaces in Philadelphia have been granted on the premise that shared- vehicle use helps maximize
overall parking availability.
Issue a Request for Proposals ( RFPs)
In 1999, the King County metro government, which includes Seattle, issued the first carsharing request for proposals
( RFP) in the United States, pledging a range of financial and in- kind assistance. An international group of experts
responded, coming together to form the first large- scale carsharing program in the country.
Several years later, Washington, D. C.' s transit agency also issued an RFP. It promised substantially less ongoing
support, but eventually it led to the deployment of hundreds of cars from two established carsharing companies.
Finally, planners for the Pittsburgh Downtown Partnership ( PDP), a nonprofit local development corporation, saw
carsharing as an amenity that could support their emerging residential market, as well as a response to commercial
objections about parking cost and availability. The PDP gained the backing of its stakeholders, approached their
regional metropolitan planning organization with the vision, and succeeded in securing a federal transportation grant.
It issued an RFP, selected a carsharing provider, and now has more than two dozen cars providing service in targeted
areas of downtown, a nearby medical and university campus district, and surrounding neighborhoods.
Become Carsharing Customers
As a part of fleet reduction efforts, governments and institutions can contract for carsharing services. Contracts
typically guarantee a minimum level of monthly vehicle use, providing the carsharing operator with visibility and a
predictable source of revenue.
Government or institutional carsharing provides a variety of benefits, including:
􀁺 Predictable Budgeting: An all- inclusive service contract helps to temper the uncertainty of rising fuel costs,
Profile: CityWheels Carsharing, Cleveland
Not all carsharing programs are run by national for- profit corporations or large nonprofit organizations. My
commitment to sustainability and my passion for walkable urban neighborhoods led my wife and me to create
CityWheels, a small carsharing program in our hometown of Cleveland.
By the early 2000s, I had worked for more than 10 years in the nonprofit environmental community, advocating
for urban policies and investments that support walking, bicycling, and public transit. I recognized carsharing's
potential to support a " car- optional" lifestyle for many people — especially in areas with convenient rush hour
transit service, but limited night and weekend coverage — and felt that a carsharing service in Cleveland could
further support the transit- friendly policies I had been working on.
For several years, we attempted to attract an existing operator to
Cleveland. The city's car- oriented land use patterns and limited use
of alternative travel modes, however, discouraged interest. It
became apparent that if the community wanted carsharing, it would
need to form an organization of its own.
We approached the region's key charitable foundations with the idea,
but found them wary of funding a business venture. With little hope
of raising charitable startup funds, we made the decision to personally incorporate CityWheels as a small for-profit
business. We have since funded the company primarily with family savings and personal debt, in contrast
to the millions of dollars in government grants or private equity investment that fuel the growth of larger
carsharing organizations.
Our opportunity to launch Ohio's first carshare program came in early 2006. Environmentally minded students
from Oberlin College, a small liberal arts school 40 miles outside of Cleveland, approached us about providing a
carsharing service on campus. They gained support from the college's chief financial officer and president, which
led to a critical multi- year contract. Oberlin College now has two carshare vehicles, a Prius hybrid and Scion xB
wagon, on its campus.
Later that year, we approached University Circle Inc. ( UCI), the nonprofit organization providing services,
advocacy, and development support for University Circle, a densely packed square mile of world- class health
care, education, and arts institutions at the eastern edge of Cleveland. Thanks to startup backing and continuing
in- kind assistance from UCI, we have placed two more cars in this growing district.
To date, CityWheels has served more than 250 customers with this limited fleet. We anticipate expanding to at
least 12 cars in 2008, and are working to create partnerships with the regional transit authority, the county's
planning commission, and additional area colleges.
The road has been bumpy at times, and the business still needs many more cars to reach a break- even point. In
retrospect, incorporating as a nonprofit would have been less stressful, even if slower to launch. Yet all signs
point to a very bright future.
Our members tell us that carsharing has made an enormous difference in their lives. We're proud of the change
we've inspired so far and are passionate about sharing CityWheels with a much larger audience.
For more information about CityWheels, visit www. CarsByTheHour. com or e- mail info@ myCityWheels. com.
Ryan McKenzie
Image: CityWheels carshare vehicles stand ready for use in the University Circle district of Cleveland. Photo by
Ryan McKenzie.
maintenance, and self- insured claims on constrained budgets.
􀁺 Fleet Reduction and Replacement: Some percentage of any large fleet gets driven only periodically, yet the
acquisition, maintenance, and operation of such vehicles represents an enormous ongoing cost. Carsharing
vehicles can effectively serve peak demand travel needs, allowing for significant decreases in fleet size without
affecting employee mobility. Furthermore, carsharing vehicles are usually newer, cleaner, and more efficient
than the fleet cars they replace, which can reduce total greenhouse gas emissions.
􀁺 Improved Efficiency: Vehicles in some organizations are assigned for use exclusively within specific
departments, causing unmet demand in some offices while other cars sit idle. Carsharing allows multiple
departments to easily reserve any car in the shared fleet, improving vehicle access and employee productivity.
􀁺 Greater Accountability: Carsharing provides a mechanism to ensure that fleet vehicles are driven for official
use only. Fleet usage dropped significantly when the City of Philadelphia began to bill vehicle usage back to its
departments, indicating that departments were being held accountable for their use of government vehicles.
􀁺 Public Benefit: While an internal fleet sits idle on evenings and weekends, carsharing vehicles are available to
serve the surrounding community, creating a quality- of- life improvement with no added public cost.
The cities of Philadelphia and Berkeley, California, provide two early examples of municipal governments using
carsharing programs. In 2004, the City of Philadelphia eliminated more than 300 municipal vehicles with a net
savings of approximately $ 9 million over a five- year period, including reduced costs for acquisition, parking, vehicle
maintenance, and fuel ( Friedman 2006). In that same year, the City of Berkeley replaced 15 underused fleet cars
with five carsharing vehicles, yielding approximately $ 400,000 in savings over three years, from $ 250,000 in
replacement cars, gasoline, and maintenance and $ 150,000 on insurance and fleet management ( City of Berkeley
Mayor's Office 2004).
Encourage Carsharing in Development Projects
Municipalities can allow developers to reduce overall parking requirements in exchange for carsharing support,
adding to other benefits of reduced parking such as more efficient use of space and reduced impervious surface and
stormwater runoff issues. Variations include allowing carsharing spaces in lieu of general use parking and allowing
greater floor- area ratios.
Parking reduction policies are most effectively codified in zoning or building codes, making them easy for developers
to use. While they can be managed on a case- by- case basis through the variance process, the bargaining adds
difficulty and reduces the likelihood of action.
􀁺 Seattle's Municipal Code allows for a reduction of one parking space for each parking space leased by a
carsharing program for small- scale developments ( City of Seattle 2008). For larger- scale developments,
Seattle's municipal code allows for a reduction of three required parking spaces or 15 percent of the total
number of required spaces, whichever is fewer.
􀁺 Parking by- laws in Vancouver, British Columbia, give officials the option of substituting carsharing vehicles and
parking spaces at a 1: 3 ratio, up to one carsharing vehicle for each 60 dwelling units ( City of Vancouver
2005).
􀁺 More than two years before an operator stepped forward to provide service, the city council of Austin, Texas,
included carsharing in their parking reduction policy, allowing for minimum off- street parking reductions of 20
spaces for every carsharing vehicle provided. For multi- family residential uses in the University Neighborhood
Overlay District Section, off- street parking requirements are reduced to 40 percent of regular standards with
participation in a carsharing program ( City of Austin 2008). No projects have taken advantage of the policy to
date, but the carsharing operator notes that the code change has generated awareness of and interest in
carsharing among local developers.
Address Tax Policy Issues
Because of its hourly rate structure, annual membership fees, and the location of vehicles, carsharing almost
exclusively serves local residents and businesses– taxpayers who are changing their daily behavior in ways that
produce a variety of local benefits.
Yet confusion about the fundamental differences between carsharing and standard car rental have, at times, led to
misapplication of state and local rental car taxes. They can raise carsharing prices by up to 20 percent, stifling
demand and undermining the viability of these programs.
Regardless of whether a carsharing program is for- profit or nonprofit, governments should look to the character of
the service provided and support tax policies that are congruent with public goals such as affordable mobility,
parking demand management, and emission reductions.
Several communities have resolved this potential confusion by clarifying their tax codes:
􀁺 Chicago's City Council has declared all carsharing vehicles leased on an hourly basis to be exempt from the
city's 6 percent car rental tax.
􀁺 Multnomah County ( Portland metropolitan area) was the first U. S. jurisdiction to formally adopt a legal
definition of carsharing, thereby exempting it from existing vehicle rental taxes.
􀁺 The Washington State Legislature is considering tax breaks for carsharing users and exemptions for rentals
with a valid Washington identification and address.
CONCLUSION
Although relatively few resources have been invested in carsharing to date, these innovative programs have already
demonstrated remarkable individual and public benefits in a variety of community and campus settings. Low- density
patterns of land development may limit their geographic spread, yet estimates suggest a potential market for
carsharing that exceeds 10 percent of the North American population ( Shaheen, Cohen, and Roberts 2006). With the
support and encouragement of planners, carsharing services can continue to grow and thrive in walkable
communities across the country — improving quality of life for millions of people and accelerating our transition to a
more sustainable transportation future.
About the Authors
Adam Cohen is a research associate with Innovative Mobility Research at the Transportation Sustainability Research
Center ( TSRC) at the University of California, Berkeley. He is a member of APA and has a master's degree in city and
regional planning from the Georgia Institute of Technology. Susan Shaheen holds a joint research appointment at the
Transportation Sustainability Research Center ( TSRC) at the University of California, Berkeley, where she is a
research director, and at the Institute of Transportation Studies– Davis. She has been working on carsharing in North
America and internationally since 1996 and has authored numerous journal articles and reports on this topic. In
1999, Shaheen launched the first smart carsharing program in the U. S., CarLink in Dublin– Pleasanton, California.
Ryan McKenzie is the founder and president of CityWheels Car- sharing. He has a master's degree in Urban Studies
Carsharing Resources on the Web
In addition to the studies and information presented in the reference list, there are many online carsharing
resources available. This list provides just a few examples and is by no means comprehensive.
The World CarShare Consortium is a cooperative, independent, international communication program supporting
carsharing projects and programs worldwide: www. ecoplan. org/ carshare/ cs_ index. htm
Innovative Mobility Research explores innovative mobility technologies and services that could improve
transportation options, while reducing their negative societal and environmental impacts: www. innovativemobility. org
CarSharing. net is a nonprofit educational and promotional site supporting the carsharing industry in North
America: www. carsharing. net
Carplus, in the United Kingdom, has produced a variety of resources from basic information sheets to detailed
good practice guides: www. carplus. org. uk/ Resources/ carplus- resources. htm
The Transportation and Land Use Coalition's Instant Advocate provides an overview of carsharing, case studies,
and resources:
www. transcoalition. org/ ia/ carshare/ 03. html
The Carsharing. US blog provides information, issues, and ideas for U. S. and North American carsharing services
and providers:
http:// carsharingus. blogspot. com/
Bringing Car- Sharing to Your Community, by Berkeley's City CarShare, is an extensive practical guide to starting
a carsharing organization in your community:
www. citycarshare. org/ download/ CCS_ BCCtYC_ Long. pdf
The Beginner's Guide to the Car Sharing Business is a brief guide for anyone who wants to bring carsharing to
their city:
www. autoshare. com/ beginners/ guide. html
The Co- operative Auto Network ( CAN) provides resources and guidance in starting a carsharing organization:
www. cooperativeauto. net/ about- can/ can- consulting/
from the Levin College of Urban Affairs at Cleveland State University and more than 10 years of experience in urban
public policy, infrastructure design, and advocacy for walking, bicycling, and transit improvements. A committed
urban environmentalist, he lives in a solar- powered home near downtown Cleveland.
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