Gary Vaynerchuk Keynote | ICON 2016
State CarSharing market potential and growth.
Although aspects of carsharing exist since 1948 in Switzerland, it is only in the last 15 years the concept has evolved to a mobility solution in the United States.
In that time, the market for car sharing increased from an experience-oriented university research heavily subsidized in a full-fledged business for profit, mainly owned by the rental companies of traditional cars and automakers aujourd ay, Zipcar owned by Avis Budget Group, owned by Daimler car2go, Enterprise CarShare and 24 Hertz 7 control 95 of carpooling market in the U S.
Compared to the rental car, the fleet size and income for carsharing remain relatively low 2014 Fall Ride Outlook, produced by the Transportation Sustainability Research Center at the University of California, Berkeley, reports 19.115 cars car sharing in the US share about 996 000 members in total annual turnover for carsharing in the United States is about 400 million, compared to 24 billion revenue for the traditional car market .
These figures have almost doubled in carsharing five or six years, demonstrating sustained growth but not an explosion, however, the technology, the new transport patterns, demographic changes and changing attitudes on mobility offer new opportunities carsharing is ready to take advantage.
As carsharing in the U S is essentially consolidated by the four market leaders, they will inevitably be the drivers of much of this growth.
Market observers see a meaning as an accelerator of growth or point to point by car2go carsharing Introduced, the second largest car-sharing company in the world, point to point CarSharing allows users to pick and drop the cars in a parking space legal in the company's coverage area.
Point to point can quickly attract three to four times the number of members of a traditional service return, said Dave Brook, managing partner of international transport consultants Red American team but they cost a lot of money to start since you need several hundred vehicles to start.
The largest car sharing company, Zipcar, operates a network of traditional stations, although the company is testing a beta-way program in Boston Zipcar One Way is not floating; rather, it allows the user to drop the car off in one of the garages Zipcar pods generally provided the landing pod is reserved by the user in advance.
There are a number of local governments changing parking policies to allow floating carsharing single sense, says Dr. Susan Shaheen, co-director of the Research Center Sustainable Transport Berkeley, including Boston and Seattle.
However, any city can accommodate a floating system, especially when parking is limited or difficult, says Brook.
Enterprise Holdings began its car-sharing program like WeCar in 2008, focusing first on corporate universities renamed Enterprise CarShare in 2013 Entry 30 new North American markets last year, the company experienced a CarShare organic growth and acquisition of independent car sharing companies such as IGO Chicago, AutoShare Carsharing Network in Toronto and PhillyCarShare.
Ryan Johnson, assistant vice president in charge of car sharing and vanpooling operations of the company, said that carsharing is the technological evolution of the company's growth on the Ride neighborhood market takes this to the next level, says -he.
Hertz car sharing service started as Connect by Hertz in 2008, renamed Hertz on demand in 2011 and as Hertz July 24 in 2013 operates in 18 states and nine countries.
Although it was quiet late regarding announcements of new fleet and locations, Hertz is piloting video kiosks in collaboration with its car-sharing service in New York Kiosks allow customers to perform fully automated rental transactions and interact directly with service agents live customer.
BMW DriveNow car-sharing program in collaboration with Sixt, operates 2,400 vehicles in Germany, Austria and the UK While DriveNow US footprint is small electric models 70 BMW ActiveE in San Francisco Seattle is expected to come online this year using the point-to -point model.
Is the market dominance of four companies make room for the growth of self.
Before the acquisition of Zipcar by Avis Budget Group, there was a significant amount of growth in car sharing industry, said Julian Espiritu, managing director of Abrams Carsharing Advisors Since car rental companies have obtained carsharing, it s been difficult in North America to launch a carpool independent operation.
Two of these independents have links with rentals of non-Carpingo large companies owned cars Allcar Rent-A-Car, serves the boroughs of New York and is in direct competition with major CarShare car sharing companies serves students from 16 universities Ontario province the company has partnered with Discount Car Rental and trucks on the fleet in exchange for a percentage of the profits.
Espiritu highlights many more opportunities for traditional carsharing on overseas markets, particularly in Latin America and in developing countries, where only a handful of car2go carsharing companies recently announced an initiative operating in China.
A handful of early players like Communauto in Quebec and the City CarShare in San Francisco, a non-profit, managed to avoid the consolidation Since 1994, 80 car-sharing programs have been deployed in the Americas; 45 are operational and 35 dead, according to fall 2014 Carsharing Outlook.
Other high-level survivors and newcomers have deep pockets.
In space peer-to-peer, growth has come in fits and starts Getaround and RelayRides, but both have recently obtained funding to eight digits RelayRides moved hire at the time and now works as a company traditional daily rental vehicles personally using the property laws in California, Oregon and Washington mandates that insurance companies can t abandon their cover insured for personal use that rent their cars.
FlightCar has established itself as a peer-to-peer 11 major airports FlightCar members drop their cars outside designated parking and get paid to allow others to use their vehicles as they travel.
BlueIndy an offshoot of the Paris conglomerate Bollore Group, will soon launch in Indianapolis Service, in collaboration with Indianapolis Power Light offers electric cars and plug-in public charging stations Bolloré also ensures AutoLib, Paris largest carsharing network AutoLib works exclusively manufacture electric Bluecar Bollor.
Electric vehicle EV carsharing is a favorite of city governments for environmental reasons, Shaheen says most car sharing trips fall limited range of an EV, operators can get federal tax credits and grants for setting implement, and automakers are ready to use car sharing as a means of driving EV adoption.
Shift carsharing network soon to open in Las Vegas that only rents electric vehicles, will also include valet parking for pickups and drop offs Zappos CEO Tony Hsieh has invested 10 million in the startup.
Carsharing has always found its niche in urban areas, especially those with strong public transport networks, as well as universities Although these areas continue to grow, new are operated.
In various cities, mega-complex of new dwellings such as Greenpoint Brooklyn Landing High Profile add carsharing as equipment for residents.
Are now considered non areas traditionally regarded as ideal for carsharing Our neighborhood is the worst for public transport, but we have seven Zipcars said Gil Cygler, owner of Carpingo Allcar and Rent-A-Car I've never seen my neighborhood to carsharing there five years.
Tony Simopoulos CEO Metavera a technology provider of car sharing, said that independent participants would have difficulty penetrating major cities such as New York, Philadelphia, Chicago or Washington D C; However, second-tier cities have untapped potential for new blood.
Michael Lende, founder and CEO of the student CarShare think there is still room for car sharing in academic markets Lende says its surveys show that nearly 90 new students and their parents do not know that carsharing is.
Each of the major car-sharing programs manages a business program for companies, spend a fleet belonging to a common fleet allows them to cut the burden of fleet For the same reasons, municipalities such as Washington, DC Sacramento, California and Vancouver have implemented several programs carsharing fleet management companies are considering partnerships with car-sharing companies.
Local governments with friendly public policies favor government entities but growth of car sharing could just as easily limit carsharing allocation of parking space, which essentially shut new entrants to a market.
Parking spaces are increasingly considered battlegrounds The patchwork of parking regulations are a constant challenge for operators carsharing It took nearly three years to get our first license, said Diego Sol rzano, founder of the core, the first and only car sharing company in Mexico Parking in Mexico City is controlled by 10 different agencies, so that each agency must approve a project.
Fleet expensive for newcomers without lines of funding for traditional fleet and insurance companies have tightened their reins on car rentals in general if you start a car-sharing business, you really need at least 25 30 vehicles, Espiritu said.
For me, the big news in 2014 carsharing didn t happen in the industry of car sharing in all it was the incredible growth of Uber, Lyft and Sidecar demonstrating an unused demand for services such as taxi, rather than all could imagine, Brook said.
Called for now, or more precisely, the supply hailing walk or ride, the transmission system businesses have exploded worldwide transnational corporations in recent years, and Uber Lyft s ratings now leads the Review Group budget and Hertz ss combined.
Is working supply help or hurt the penetration of carsharing.
In a sense, the supply of conduct and other forms of shared use, including bikesharing services are potential competition for the same short-distance trips that carsharing specializing in one-way services and supply turnover increased competition for point to point access, Shaheen said.
Photo courtesy of supply Communauto carsharing Ride and competition in cities with taxi services limited Ride-sourced replicate taxi rides trips, so they're usually in a way, with patterns similar to using point to point carsharing services.
From the perspective of Brook, anything that allows people to travel in the vehicle of someone else's help to reduce long-term car ownership, which makes carsharing more attractive, it is said if we are to urban mobility tipping point models, it is too early to tell.
We saw the convergence of CarSharing and car rental markets for some time, Shaheen said it points to less-teller and cashless transactions and storefronts virtual stores from which tenants can choose a specific car with rental lengths every hour week while trips are reserved or spontaneous, one way or round trip.
Convergence is logical, said Michael Youssef, CEO and President of Rent Centric car rental supplier and car sharing hardware and software.
Early adopters of the carsharing market didn t have first experience in the car rental market, so when they began to formulate solutions, they did it on a white paper, he said, but when they began to realize that car sharing is a rental car, but using a method request, this business model must include in itself all the business processes that the car is used for, in particular the purchase fleet sales, maintenance and use.
Johnson sees the market maturing in two ways The base car sharing customer will grow because we're providing more and better network, with better technology, and traditional niche will become public, he said at the same time, we're putting the car-sharing technology in every car phases, so pick up a car in a manner unattended is not just someone who decided to become someone predisposed member can access the car sharing car.
It prophesies a new trend altogether at the request or car rental self-service using car sharing technology to automate the traditional rental process without the rental counter and attendant, unattended rental allows a company leasing operate much lower margins, said Nittin Duggal, vice president JustShareIt, a carsharing technology provider.
At least initially, the technology can be used to automate parts of a lease, such as documents or accelerate the qualification of the customer It's a lot of opportunities for those things to merge eventually in the rental process per day, Johnson said.
Johnson added that the appropriate customer focus is essential to move the new model front While CarSharing members include responsibility for the group to keep the car unattended for the next tenant, non-members can not you got a combination of early adopters and new technologies, he said they have to grow up and mature in a very conscientious way to get to that future.
Hotel rooms and home grocery delivery for downloading movies to a tablet, consumers expect to be able to transact anything at hand, consumers are increasingly looking fly more services that meet their needs on demand using a mobile device, Duggal said with a few taps on your mobile phone, you should be able to do whatever you want.
Car Rental demand is an extension of this trend.
Other external factors seem to favor the expansion of the World Health Organization estimated demand model that 70 of the world's population will live in cities by 2050, against only 50 now this return movement to cities exacerbates the already alarming congestion levels.
Studies reveal that the millennial generation is Eschewing car ownership in this new era of social media, and automakers noted Audi is a pilot program in Stockholm that allows four people to share an Audi up to two years in Germany, Ford researchers are testing a smartphone application to transport commuters shuttle for trips around town automakers are increasingly see their role in providing mobility rather than the sale of vehicles.
The need for mobility will always exist, even if it is transformed constantly into new areas, more efficient Auto will not disappear, but the idea of sharing the gains more ground.
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