Car Sharing - US

Published by: Mintel International Group Ltd.

Published: Jun. 1, 2009 - 53 Pages

Table of Contents

Scope and Themes

What you need to know

Definition

Data sources

Consumer survey data

Advertising creative

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Car-sharing programs have more than 300,000 U.S. members

Car sharing still relatively young in the U.S., controlled by three interests

Zipcar

Car rental operators

Non-profits

Car-share operators market through word of mouth or partnerships

Car-sharing awareness, participation extremely low among respondents

Car sharing skewed more towards high income earners as second cars

Car ownership most significant obstacle preventing car sharing

Competitive Context

Carpooling positioned to share rides among users within single vehicle

New York City explores the possibilities of sharing cab rides among riders

Daimler launches pilot program to offer easy access to Smart Fortwos

European-style automated bicycle sharing arrives in Washington, DC

Market Drivers

Fewer miles traveled may create increased reliance on car sharing

Figure 1: Consumer vehicle miles traveled, all U.S. roads and streets, 1998-2008

Downturn in rentals forces some car rental companies to pursue sharing

As new car sales decline, consumers may rely more on car sharing

Municipalities encouraging car-sharing incentives for new home developers

Toyota launches electric brand targeted just for car-sharing users

Municipalities, corporations creating exclusive pacts to car share

Car-sharing Segments

Key points

Car sharing is controlled by Zipcar, car rental companies, non-profits

Figure 2: Annual membership fees and rates and cities available, national U.S. car-share companies, 2009

Zipcar

Key points

Zipcar dominates car sharing, having vehicle fleets in more than 50 cities

Zipcar emphasizes convenience more than environmental advocacy

FastFleet generates revenues through selling car-share technology

Rental Car Companies

Key points

Car rental companies alter car-share market by launching branded service

Connect by Hertz

WeCar

U Car Share

Non-profits

Key points

Non-profit car-share programs strive to decrease driving in urban areas

Key non-profit car-share programs

Brand Qualities

OZOcar promotes environmental stewardship through hybrid-only fleet

Curvy Road’s car-sharing plans provide exclusive rights to fantasy cars

Innovation and Innovators

iPhone applications connect passengers, drivers together to share rides

Zipcar, I-GO create partnerships with public transit to increase ridership

Zipcar generates additional revenue by licensing car-sharing software

Advertising and Promotion

Car sharing is promoted locally through partnerships, word of mouth

Car-share companies cross-promote with local businesses for discounts

Online marketing remains growing opportunity for car-share companies

Zipcar promoted through local, not national, broadcast media outlets

Figure 3: Zipcar ad, 2009

Car Sharing—Consumer Awareness

Key points

Car-sharing awareness dramatically low; growth potential high

Figure 4: Car share awareness, by gender, March 2009

Early career professionals likely to show more awareness than older peers

Figure 5: Car-sharing awareness, by age, March 2009

Car-sharing awareness rates highest with the wealthiest respondents

Figure 6: Car share awareness, by household income, March 2009

Awareness highest on both coasts; room to grow in nation’s middle, south

Figure 7: Car share awareness, by region, March 2009

Car Sharing—Participation

Key points

Car share membership skews low, suggesting opportunity for growth

Figure 8: Car-share participation, by gender, March 2009

Respondents aged 25-34 are most likely to have car share memberships

Figure 9: Car-share participation, by age, March 2009

The most affluent are most likely to be car-sharing members

Figure 10: Car-share participation, by household income, March 2009

Car Sharing—Reasons Against Participating

Key points

Vehicle ownership primary concern among potential car share members

Figure 11: Reasons against car-share participation, by gender, March 2009

Vehicle inventory needed most in neighborhoods where younger users live

Figure 12: Reasons against car-sharing participation, by age, March 2009

Middle-income households present challenge for car-share operators

Figure 13: Reasons against car-sharing participation, by household income, March 2009

Impact of Race and Hispanic Origin

Key points

Blacks and Hispanics more aware of car sharing than whites

Figure 14: Car share awareness, by race/Hispanic origin, March 2009

Hispanics show tendency to be more loyal to car sharing than others

Figure 15: Car-share participation, by race/Hispanic origin, March 2009

Hispanics more likely open to car sharing, whites more tied to personal car

Figure 16: Reasons against car-share participation, by race/Hispanic origin, March 2009

APPENDIX: TRADE ASSOCIATIONS

Abstract

Borrow my ride

Car-sharing services tend to appeal to urbanities living in dense neighborhoods that need vehicles for short errands at night or on the weekend. The marketing of these vehicles may be too narrow, regulated just to urbanities who are either single or do not yet have families. This is reflected by the types of cars most commonly offered—compacts or subcompacts instead of mini-vans—and the areas in which they are parked—crowded city neighborhoods versus single-home suburbia.

Two demographics that the car-sharing companies may be ignoring are urban families and single parents who live in the city. In both cases, owning a vehicle in the city may be cost-prohibitive due to parking, maintenance and fuel costs. For families, they may not be able to afford a second car; for some single parents, a new vehicle might just be a luxury they necessitate trading in favor of public transit or walking.

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