2024 SHARINGINSUCCESS Howcarsharingcan deliveronitspotentialinanecosystemplay INPARTNERSHIPWITH: CONTENT EXECUTIVESUMMARY3 1.CARSHARING:APOSITIVECONTRIBUTION TOSHAREDMOBILITYSYSTEMS?8 2.STRATEGIESFORSUCCESS12 CONCLUSION22 FRANÇOIS-JOSEPHVANAUDENHOVE ManagingPartner,GlobalPracticeLeader,Travel&Transportation,Brussels MICKAELTAUVEL Partner,HeadofMobilityCompetenceCenter,Paris DANIELCHOW Principal,Singapore FELIXWU Consultant,Singapore SANDRAPHILLIPS SharedMobilityArchitect,CEO,movmi ARNDBÄTZNER Director,MobilityCooperative 2 EXECUTIVESUMMARY Carsharing’soriginsdatebackto1948inSwitzerland,withfastergrowthstartinginthe1970s.Themarkethasexpandedfurtherinthelasttwodecades,drivenbyrestrictionsoncitycenterprivatecaruse,advanceddigitaltechnologies,andshiftingconsumerattitudesaroundcarownership.However,itremainsarelativelysmallmarket,accountingforlessthan5%ofthe US$100billionglobalsharedmobilitymarket. Car-sharingschemeshavefacedanumberofchallenges,bothforoperatorslookingtobuildeconomicallyviable,scalablebusinessesaswellasforauthoritiestaskedwithregulatingthemwithintheoverallmobilitysystem.Lookingahead,carsharinghasakeyroletoplayintheintegratedmobilitysystem,inlargepartdrivenbyincreasingdemandforsustainabilityandconvenience.ThisReportexploresthebenefitsandpitfallsofcarsharinganddescribesstrategiesforsuccessforbothregulatorsandoperators. BENEFITS&PITFALLS Carsharinghasthepotentialtocomeintoitsownasacriticalpartoffuturemobilitysystems,alongsidefixedroutepublictransport(buses,trains,metros),on-demandpublictransport(ridehailing,ridesharing),micromobility(bikesandscooters),anddeliveriesandservices(logistics,couriers).Indeed,aproperlyframedcar-sharingschemeoffersthreemainbenefits.First,itimprovestheoverallperformanceofthemobilitysystembyenhancingconnectivity,increasingaccess,andincreasingsystemcapacity.Second,itcontributestobettersustainabilityandsafetybysignificantlyreducingthenumberofprivatelyownedcars.Third,itofferstheconvenienceofaprivate vehicleforuserspickingupgoods,tripchaining,1ortraveling outoftown. 1Tripchainingisatravelpatterninvolvingmultiplesmall,interconnectedtrips. However,whencarsharingisnotproperlyframedintotheoverallmobilitysystem,therearesomepitfalls.Forexample,free-floatingschemes(thosewithoutfixed parkingstations)mayencourageuserstochoosecarsovermass-transportmodes.Theremayalsobecleanliness/conditionissuesfromimproperlymaintainedvehiclesandsomestationaryvehiclenuisanceissues(althoughlesssothanbikesandscooters). IMPLEMENTATIONCHALLENGES Citiesandtransportauthoritieshavestruggledtoregulatecarsharingfortwomainreasons.First,regulation hasoftenbeenoverlyrestrictive,focusedonlimitingthescheme’simpact,ratherthancollaboratingwithoperatorstomaximizeoverallmobilitysystembenefits. Insomecases(e.g.,Car2GoinToronto),limitationsonareaaccessandparkingledtooperatorsexitingthemarketaltogether.Second,inadequatecoordinationbetweenauthoritiesacrossjurisdictionalboundarieshasoftenledtoinconsistenciesthatconfuseusers. Thekeychallengeforoperatorsisthebusinessmodel.Manystruggledtoachieveprofitabilityduetohighoperatingcosts,poorcoordinationwithcompetitors,narrowfocus(e.g.,premiumnichesorB2Bcustomersrequiringcostlycustomization),unfavorablerevenue-sharingmodelswithmunicipalities,and/orlackofcollaborationwithvehicleOEMs.Finally,inadequateparkingarrangementswithauthoritieshavedepressedcustomeruptake,ashavedelaysinessentialupgradesforoperatorsrelyingentirelyonthirdpartiesfortheirdigitalplatforms. 4 STRATEGIESFORSUCCESS Successinthismarketrequiresevolvingcar-sharingschemesbeyondthetraditionalandOEM-ledmodels.Futureschemesmustintegratebetterwiththebroadershared-mobilitysystemandplaceservicesinlocationswheretheyaddthemostvalue. Werefertothisasthe“ecosystemplayerstage.”Keyfeaturesincludedesigningthesystemaroundsimplifyingmobilityfortheuser,usingcarsharingasacomplementtothepublictransportbackboneinbothcitycentersandoutskirts(includingpossiblyprovidingsubsidiesfortrips thatarelessprofitablebutbenefittheoverallsystem),anddesigningthesystemtosuitasmanyconsumersaspossible(low/middleratherthanpremium). Forcityauthorities,thistranslatesintosevenimperatives: 1.Findtherightbalancebetween“framing”(i.e.,regulationsaimedatexercisingcontroloverserviceandperformancelevels)and“enabling”(i.e.takingactionsthatsettherightconditions,incentives,andgovernancetoencouragedevelopmentofcar-sharingservicesbenefitingthemobilitysystemsasawhole). 2.Regulatetomanagedemand.Thiscouldbedonebysubsidizingparticularcar-sharingroutes,institutingparkingchargeexemptions,and/orcongestioncharging. 3.Integratephysicalinfrastructure.Thiscouldtranspirebycolocatingcar-sharingstationswithtrain,bus,and/ormetrostations. 4.Fosterinnovation,collaboration,andstandardization.Thiscanoccurthroughcollaborationforums;settingminimumrequirementsfordatasharing;establishingsuitableITinfrastructurestandards; andencouragingproductstandardization,systemintegration,andaccessibility. 5.Exploitsynergieswithelectricvehicle(EV)growth.ThisincludesintegratingcarsharingintoEVcharginginfrastructurepr