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Vehicle Sharing System

Vehicle sharing systems allow customers to use various vehicles without owning them. There are different types of vehicle sharing systems on the market. Differences can be the vehicle shared, like car sharing, bike sharing, scooter sharing or electric vehicle sharing. Besides the type of the vehicle, one main difference between vehicle sharing systems is the vehicle holder. Most commonly, the operator owns the vehicles he shares with his customers. Another opportunity is peer-to-peer vehicle sharing, where the users share their vehicles. For each vehicle sharing system, it is necessary to ensure the accessibility of the vehicles and to manage the location and operation of the vehicles. These mandatory and additional functions of the vehicle sharing system are shown below. The impact of the system varies depending on the functions implemented. Regarding the benefits of the solution, this is evident. The benefits, which can be achieved by a system containing all additional functions below, are shown as potential benefits whereas the general benefits can be reached by implementing the mandatory functions only.

   Market Overview

Most of the vehicle sharing systems which are already implemented depend on agreements between a car-sharing company and the local city administration, especially regarding parking policies. Existing use cases have proven to be highly successful in cities. According to Navigant Consulting, the industry worldwide currently has an estimated size of $1.1 billion and is expected to grow to $6.2 billion by 2024.

(Korey Clark, 2016)

    Pricing

The most common business model for vehicle sharing systems around Europe is to offer of free-floating rentals. Thereby, the cars can be parked park in specially designated parking spaces or standard parking areas with a permit from the local municipality. The customers are charged in a per-minute base and a subscription fee. The minute-based fee usually varies between 0,2 €/minute and 0,5 €/minute, depending on the vehicle sharing system and the vehicle used. The subscription fee typically amounts 0 € to 20 €. Some vehicle sharing companies also offer hourly-based or daily-based rates.

 Besides the revenue of the charges, the cars can offer a marketing channel for the vehicles within the fleet. The primary costs of a vehicle sharing system are the initial costs for vehicles and the chargers if necessary. The operational costs are mostly the costs of fuelling, maintaining and cleaning the vehicles as well as expenses related to customer service and insurance.

(Dr. Scott Le Vine et al., 2014), (Francesco Ferro et al., 2015)

Business Model Canvas

The picture shows a typical Canvas for a vehicle sharing system. It gives an overview of the business model discussed above. Some of the aspects are not necessary within the basic version of the solution vehicle sharing system, but they come along with implementing some of the additional could-have functions. 

(Francesco Ferro et al., 2015)

Functions help you to understand what the products can do for you and which ones will help you achieve your goals.

Each solution has at least one mandatory function, which is needed to achieve the basic purpose of the solution, and several additional functions, which are features that can be added to provide additional benefits.

Mandatory Functions

moving passengers with shared vehicles

Products which move passengers towards their destinations, as electric bikes or cars

informing customers about vehicle sharing

Products which help to inform customers, for example about the available services or the impact of the technology used

managing vehicle fleets

Products which manage the operation of the vehicles, this can include for example maintenance planning

accessing vehicle sharing system

Products that enable customers to access the service, as Apps or Membership cards

paying for vehicle sharing system

Products enabling the operator of the system to charge his customers for the service offered, as for example a ticket machine, a mobility card or an App

connecting vehicles of the shared fleet

Products to track and connect the vehicles of the fleet

Additional Functions

charging electric vehicles

Products which charge electric vehicles on public space, as conductive charging stations or inductive chargers 

connecting vehicles of the shared fleet

Products to track and connect the vehicles of the fleet

  Implementation

Average implementation time: < 2 years 

Initial investment amount: around 2,000,000 Euro for a system with 150 cars

  Functions

Mandatory Functions

Additional Functions

  • accessing service
  • moving passengers with shared vehicles
  • paying for vehicle sharing system
  • managing vehicle fleet
  • informing customers about vehicle sharing
  • charging shared electric vehicles
  • connecting vehicles of the shared fleet

 

 

     Supporting Infrastructure

A public charging infrastructure for electric vehicles can be supportive as electric vehicles might be part of the shared vehicle fleet.

 To implement a car sharing system a cooperation with the local city government is helpful. In general, cities are more likely to support vehicle sharing systems using sustainable and emission-reducing technologies like electric vehicles or fuel cell vehicles.

Alex from BABLE

   Benefits

  • Reducing traffic congestion
  • Improving parking
  • Improving life quality
  • Promoting sustainable behaviour
  • Reducing local air pollution

   Potential Benefits

  • Reducing GHG emissions
  • Supporting environmental efficient transport
  • Promoting electric vehicles
  • Limiting urban sprawl