Wednesday, May 01, 2013

Interview with German Carsharing Association director Willi Loose

The Michelin Group sponsors the annual Challenge Bibendum to showcase better mobility, automotive efficiency and new technologies.  [Bibendum is the name of the "Michelin Man" used in Michelin corporate advertising

The following interview with Willi Loose, the head of the German Casharing Association (BCS - Bundesverband Car Sharing) is machine-translated from the German edition of Challenge Bibendum website  4-24-2013.  Your editor has updated some of machine-translation grammar for understanding.  Thank you Michelin for this excellent interview.

Summary: 

Willi Loose is Managing Director of the German Federation of Carsharing (BCS), which currently has 110 German carsharing provider as its members. According BCS it had at the beginning of this year, more than 453,000  members of driving both station-based and "free-floating" car-sharing, and about 11,250 carsharing vehicles. We spoke to this carsharing expert on the development of the industry, the various offers with their advantages and disadvantages as well as useful measures for continued high growth of carsharing industry.

Challenge Bibendum: With rising fuel costs will inevitably increase the cost of car-sharing services. How can alternative forms of propulsion, especially the electric mobility, contribute to the problem? Help electric car2go fleet as paving the way for the general acceptance of electric cars in Germany?
Willi Loose: Rising fuel costs contribute only to a small extent to the cost of the general use of car, if one assumes an average driving performance and up to a four year old car. In fact, the finance charge and the depreciation of a car play a significant role. These fixed costs are allocated when carsharing on many shoulders, but the private car owner bears all these fixed costs alone. In addition, the car-sharing user has the full control of his car costs, since they are predominantly or almost exclusively of user cost.

Electric cars are much more expensive than vehicles with conventional drive under the current conditions in the overall cost. If the car sharing provider want to pass on their actual costs, would electric vehicles in carsharing fleets so be borrowed at a higher rate than comparable sizes of vehicle, which is not accepted by the users. The lower consumption (electricity versus fuel) compared to the lower holding period of commercially leased vehicles not sufficient. The electric vehicles currently offered by car manufacturers in carsharing fleets are offered below cost, here certainly play marketing aspects of electric vehicles manufacturing companies the main role. Cost-effective electric vehicles will only be when the battery costs drop significantly.

Many car users to try out electric vehicles in carsharing fleets for the first time. In this respect they may also prepare the ground so that motorists know the technology and can collect their own experiences with the range. In our view, make electric vehicles in carsharing fleets more sense, because the range does not really matter. At the carsharing station is next to the electric car also always a conventionally powered vehicle. The carsharing customer can choose whether he makes his next trip to the electric vehicle, or - for long journeys - with the conventional vehicle.

Challenge Bibendum: What does the typical car sharer look like today and what distinguishes them from customers at the beginning of the 1990s?
Willi Loose: Here we must distinguish between the typical carsharing customers in station-based carsharing [editor note: for example Zipcar] and the customers of the floating on-street parking carsharing services from some automakers [ed. note: for example car2go].
The station-based carsharing has developed continuously since 1988, and is now available in 343 cities and towns in Germany. First, environmentally-oriented people were the pioneer generation of car sharers. This group grew gradually to the extent that through cooperation of providers other user groups have been addressed. The typical user in the station-based carsharing are between 30 and 60 years old, the proportion of men here is about 55 to 60 percent. In addition to the environmental friendliness of this deal, customers are interested in convenient usage and cost.

The new one-way offerings from the automakers is attracting other users offer their flexibility and their use of social media. These have majority a majority of members between 25 and 35 years, with the share of males is up to 80 percent. Common to all is that carsharing participants have a higher than average formal education.
About a quarter of carsharing members are commercial customers, i.e. employees of companies and administrations that do their official journeys by car sharing. Here the cost and ease of handling are paramount in motives for use.

Challenge Bibendum: Have station-based providers a safe future in the coming years as with such high membership growth rates [of one-way carsharing services] as in the record year of 2012? The ability to leave the car at any place seems much more attractive.
Willi Loose: This question is from the outside, that car manufacturers have announced that they will come with their first offer is only in German cities over 500,000 inhabitants. Further spread of the offerings as last year is therefore not expected. This is also consistent with the announcements for this year.At the moment there are the offers of the [one-way services] in six German cities (including Ulm/Neu-Ulm), the station-based offerings, however in 343 cities and towns.

In contrast, afford the station-based offerings for many years real development work by opening up piece by piece, new cities and towns for the car-sharing, which is consciously accepted that they also develop sites with poorer earnings prospects.

But even in the big cities, where there are freely available next to the station based offerings in the street spacecraft, have the station-based continuing good development opportunities. Both services cover partly different usage requirements. The user fees of free-floating vendors are comparatively high and has just been increased. Longer journeys or longer rental periods are much cheaper at the station-based offerings. The rates of the station-based offerings are low on both the short as well as longer trips and even for holiday trips accepted by customers as a cost-effective (compared to the costs saved their own cars).
In addition, the station-based services can be booked well in advance and are therefore available for longer trips planned in advance to the desired time reliably available.


Challenge Bibendum: Is there any information on whether and how many customers combine different providers, i.e. use both station-based and free-floating offers?
Willi Loose: We have no reliable information about this.  However, indications are that this overlap will increase in the future. However, there are indications that their customers sign up in cities where multiple free-floating vendors co-exist (for example in Berlin, Dusseldorf, Cologne), up to a significant proportion of both parties.

Challenge Bibendum: Germany is in the use of car-sharing in international comparison in second place - where we can learn something from other countries anyway and where can you take us an example?
Willi Loose: You can look at the results from two perspectives. In the absolute number of members, the U.S. is number one, which is due to the larger population there. But you can also compare the proportion of car sharers is in proportion to the total population. Here, Switzerland is world number one by a large margin. The share of Swiss car-sharing membership in comparison to the total population is about five to six times as high as ours. The explanation is, in our view, that in Switzerland the public transport is much more reliable and expanded networked all over the country. Moreover, the lack of a car industry in Switzerland means that there is no counter argument that national attention should be given to the jobs in the auto industry. Here so much we could learn from Switzerland.
Picture of Stadtmobil Hannover station-based vehicle (foreground) and free floating vehicle (background)

Challenge Bibendum: How much should cooperate with carsharing service provider of public transport in order to benefit from each other?
Willi Loose: Every collaboration with mobility providers, help to reduce the private car ownership and therefore is desirable and useful. It will expand in the future much more than before, highlighting the service concept of mobility. Only then can each bring their own specific benefits to full advantage in transport. But this will only succeed if the offers are linked together in a region, are applied together, the access to these services is made possible with a common electronic [access] card - will be charged the deals with a common calculation mobility - as the final stage of development. The topic must, however, be treated with the utmost sensitivity. The network must be without discrimination and involve all interested providers. Is also very sensitive to the question of who organized the customer data.

Challenge Bibendum: How can further expand the already great deals you today to realize in the future growth of up to 20 percent annually?
Willi Loose: Tenders (ed. note "RFPs"] have been repeatedly expanded to attractive customer-oriented services in recent years. This development will also continue in the coming years. Hanover experiences with the first combined offering in Germany from Hanover Stadtmobil, in which a primarily station-based car-sharing system is mixed with a smaller free-floating supply. Customers can therefore choose to have the same rates as their provider, which is the right system for their next trip. We are very sure that in the station-based car-sharing similar the future growth rates can be achieved as before or higher.


Challenge Bibendum: Where do you currently still obstacles and barriers to car sharing? Of cooperation which carsharing could currently benefit the most?
Willi Loose: We have our National Development Plan Carsharing published in March 2012, in which we have formulated demands and expectations of the federal policy. The goal is to have a tenfold increase in the number of car-sharing members in Germany within ten years if the policies are set to consistently promote car sharing. So far, this is mainly manifested in words, but which must be followed by consistent action. Some requirements are: consistent involvement of support measures for carsharing in climate protection and sustainability plans as well as transport development concepts, an information campaign on the part of the Federal Government and the ministries, a legally satisfactory arrangement to provide carsharing parking spaces on-street (for station-based offers) and more. These expectations are to be transferred in part to the state and local level. The paper is available on our website www.carsharing.de [[ed. note: here is English translation of the page] to download.

Challenge Bibendum: Do you need to explain carsharing in everyday life or is the most common topic for most people already?
Willi Loose: Although most people in Germany have already heard of carsharing, the exact information about how it actually works and how easy they could integrate carsharing use in their own everyday mobility is not yet sufficiently widespread. Even so-called experts here often have gaps in their knowledge. Most is gained if you can convince interested parties of a first try.


Challenge Bibendum: How do you move yourself continuing?
Willi Loose: I am in the privileged position to have a [German Railroad discount card "Bahn Card 100"], with which I can do the vast majority of my business trips. Included in the rail card 100 is the use of public transport in about 80 cities in Germany, so I can get on local buses, subways and trams without thinking and without looking at the vending machine at the station. To work in Berlin, I am getting around by subway or bicycle, depending on weather and destinations. Cycling and public transport are also my preferred means of transport for personal trips.  It has been 20 years since I owned a private car more and I do not miss it.

Challenge Bibendum: Thanks for the interview.

Wednesday, April 24, 2013

Volkswagen Purchases 60% Stake in Greenwheels

More consolidation in the carsharing industry.  

Reports from Automobilwoche of Germany say that Volkswagen Financial Services is purchasing a 60% stake in Collect Car BV of Rotterdam, The Netherlands, operators of Greenwheels Carsharing.

The new owners will be a joint venture between VW Financial Services and the current majority owner Pon Holdings, a Dutch conglomerate with transportation-related holdings in auto importing and bicycle manufacturing.

The head of VW Financial Services Frank Witter told AutomobilWoche:
"We see, pay-per-use approach interesting growth opportunities. With Greenwheels you win a very successful partner whose experience in car sharing and the integration into public transport concepts will move help us move forward."
Quicar
VW launched developed and its own carsharing service with a pilot project called Quicar in Hannover, Germany in November, 2011.  The service was based on a traditional station-based, round-trip service model.  Quicar has some links to local VW dealers for longer-term rentals.  Quicar has hinted at future innovations in service since launch and many observers wondered if they would expand into the now crowded arena of one-way/on-demand floating fleet carsharing, pioneered by German automaker Daimler.

In 2012 VW demonstrated Quicar to their world-wide network of importers and affiliates, apparently to gauge possible interest in Quicar offerings in other countries.  But, to date, Hannover is the sole location for Quicar.  The German market is highly competitive with several competitors in ever major market, including both round trip and one-way services.

Greenwheels

Greenwheels started in 1995, is the Netherlands largest carsharing provider, with more than 2,000 vehicles total.  They face competition from ConnectCar and StudentCar in a number of cities.

Greenwheels began service in Germany in 2004, taking over operation of the ill-fated StattAuto operations in Berlin and Hamburg.  It now operates in 7 major cities in Germany.   While the limited range of vehicle choices, with an emphasis on smaller, economy vehicles, appears to work in the Netherlands, it may be holding them back in Germany.  Another factor holding them back there may be the reportedly unresponsive customer service.

Greenwheels had been eyeing the London and made a small effort in this sprawling market, negotiating permission for parking in only two boroughs.  But in March 2013 they quietly pulled out.

What's Ahead?

This is a bold move by VW (although probably "small change" by automotive standards) and could signify shake up the round-trip segment of the carsharing industry in Germany.  Clearly, VW brings bundle of Euros to the table for technology development and future expansion, as well as easy access to vehicles.  (Greenwheels current fleet in the Netherlands is composed largely with French sedans and in Germany Toyota Verso and Yaris.)   Greenwheels brings a strong brand, a large membership base and a well-honed operation, at least in the Netherlands.

This appears to yet further confirmation that car manufacturers see the handwriting on the wall about "peak car sales" in the European market.  To date four auto manufacturers in Europe have implemented one-way/on-demand services: BMW (DriveNow), Daimler (car2go), Citroen (Multi-City) and Renault (Twizy Way pilot); while Peugeot continues their Mu project.  Even Opel/GM Europe is now giving indications it wants to get in the game, as well.

One question everyone will be asking is what will happen to the Greenwheels and Quicar brands?  VW has spent a significant amount of money developing the Quicar brand (although outside of the carsharing industry the brand is mostly known only in Hannover), while Greenwheels is well known and respected in the Netherlands.  Hopefully, they will learn from Zipcar's experience with Streetcar and undertake whatever transition they decide slowly (as they've shown with Avancar branding).  Another challenge they face will be the merging of much different corporate cultures.

Another chapter is beginning.  In the meantime enjoy this nice 30 second Quicar video

Sunday, March 31, 2013

Mobility4Learners

One of the small but on-going issues in moving from car ownership as the dominant paradigm is how will young people be able to practice to get a driver's license?  

Until now no carsharing company of had a solution to this problem since most carsharing insurance policies required that members have had their driver's license several years as a condition of membership (apparently a proxy for driving experience).

Now Mobility Carsharing Switzerland has developed a program for beginners that includes discounted 6 month membership with reduced insurance deductible.  Learners must be attending (or have attended) a designated driver's ed course and must accompanied by another Mobility member at least 23 years old who has had their drivers license for 3 years (for which they provide discounted membership for, as well).  

Usage rates under the Mobility4Learners are standard for their Budget class vehicles (Citroen C1 or equivalent): 2.80 CHF per hour and 0.54 CHF per kilometer (about $2.95 per hour + 91¢ per mile (yes, that's correct!)

I assume the clever program name Mobility4Learners will appeal to the target market segment (which reminds me too much of intentional phonetic mispellings by marketers - e.g. Krispy Kreme doughnuts, which I can't bring myself to use in text messages to this day.)

So bravo to Mobility for coming up with this program: May your 6 month membership rates zoom up and your insurance claims stay low!  (And thanks to Carsharingblog.de for the tip on this program)

Wednesday, March 27, 2013

Mobility on Demand is Getting Closer to Reality

I first heard about the concept of mobility on demand from Dan Sturges several years ago, but it's been promoted by other people and groups, as well — MIT Media Labs, to name one.  Typically, a "mobility on demand" system would consist of a network of lightweight 1-2 passenger vehicles, typically electric, usually operating between (recharging) stations.  The concept, as Dan likes to explain it, is that the MOD system is your "near car" and a more classic carsharing or car rental could serve as your "far car", if a train or bus option wasn't available.

Arguably, we already have several mobility on demand systems operating already: public bicycle sharing is also mobility on demand, as is one-way carsharing, like car2go or Autolib' in Paris.



Recently, Toyota has unveiled a very cool new vehicle, the 3-wheel, tilting i-Road, and announced it will be included in a mobility on demand demonstration project in Grenoble, France. The project will also include the far less sexy, non tilting COM vehicle (right).

The Grenoble project will be a collaboration with the city of Grenoble-Alps Metropole, the existing carsharing company CitéLib' (which will manage the system), the national electric provider, EDF (providing charging), and Toyota Motor Corp.

Here's a cool video of the i-Road in action.



The i-Road is a "lean machine" as one website put it.

Toyota will manage the system using their "One Mile Mobility Management System" announced at the ITS World Congress (see graphic above) and described here (PDF).   Toyota Global seems to be good at coming up with names, and they say that the One Mile Mobility Management system is part of their Ha:Mo Ride system, short for "Harmonious Mobility".  The other part of Ha:Mo is Ha:mo Navi, providing options for using both public and private modes. Here's a description of Ha:Mo from Autoblog Green.  If you enjoy the work of Japanese animé filmmaker Hayao Miyazaki, you'll enjoy this promotional video Studio Ghibli produced about Ha:Mo.


Renault, developer of the Twizy has been testing the Twizy in a mobility on demand system in a suburb outside of Paris for the past year, but so far, reporting on any results from the project are scarce.  Nevertheless Renault has announced the Twizy will be part of a more traditional roundtrip EV-carsharing project launching in Germany under the name Ruhrauto-E at the end of this month (March) in Essen, Boltrop and Bochum.  According to Auto-presse.de this project is a partnership of University of Duisburg-Essen (UDE), the Rhine-Ruhr transport group (VRR), Viva West Housing Ltd. and the Drive-Carsharing Ltd. 

Toyota isn't the only OEM working on mobility on demand.  General Motors has shown a similar sized vehicle, the EN-V, and there have been news reports of a possible demonstration project using this vehicle in China.

We will be watching these mobility on demand systems with interest.

Tuesday, March 26, 2013

Car2Share - Daimler's Next Move in Mobility


Where have I been?  I must have been asleep at the keyboard when Daimler Innovations launched car2share in Hamburg at the end of January!


At first glance Car2share seems like more or less traditional round trip, fixed parking location, hourly carsharing, but with a bit of Daimler twist.  They've structured their offering with 3 components:

  • Private — direct link to P2P car rental provider AutoNetzer.de
  • Living — Daimler vehicles at a high end residential development
  • Working — Daimler vehicles for corporate customers at an office park in Hamburg-Harburg

The Living car2share places new Daimler vehicles at a new upscale development the Marina at Castle Island (Marina auf der Schloss Insel) and a corporate car2share ("working") at a high tech business park in Hamburg called Channel Hamburg.


The Daimler vehicles included in the service are interesting: the Mercedes B-class sedan (gasoline), a Smart Electric Drive or Mercedes "Vito" E-Cell transporter van (similar to a Sprinter in the US), the latter two EVs recharged by renewable energy.

Rates for car2share vehicle usage is slightly higher but competitve than other German carshares operating in Hamburg:
  Smart Electric Drive € 2.20 per hour + €0.21 per kilometer; daily rate 35€
  Mercedes B-class  € 2.52 + €0.25 per kilometer; daily rate 35€
  Mercedes Transporter E-Cell € 3.92 + €0.29 per kilometer; daily rate 39€
  Monthly membership residential: €19 per month

Businesses pay a monthly membership based on the number of employees signed up:
  Small (up to 10 employees) 39 €
  Medium (up to 25) 69 €
  Large (up to 50) 119 €

Included is gasoline (or electric recharge) and insurance, with a € 500 deductible.


The linkage with German P2P company AutoNetzer.de, which now lists itself as "part of the CAR2SHARE initiative", is really quite remarkable.  

Surprisingly, at least at time this post was written there's far less direct connection with car2go, Daimler's the sister one-way/on-demand carsharing service — beyond the car2go logo appearing at the bottom of the car2share home page.

Best of luck Daimler.  You've scored a hit with car2go, so I'll be interested to see how the partnership with Autonetzer works out, as well your more traditional carsharing offering works.

Saturday, March 23, 2013

Americans Just Keep Driving Less


Using data through January 2013, Doug Short of Advisor Perspectives, has posted another informative analysis at Business Insider showing we're continuing our downward trend in VMT (vehicle miles traveled) in the US.  

When adjusted for population, we're back to 1995 levels of driving. And, as has been pointed out many places, the decline actually began in 2004-5, 3 years before the big recession.   

Although the VMT is up a fraction (0.24%) over last year, Mr. Short attributes much of the continuing post recession decline to "demographics of an aging population in which older people drive less, continuing high unemployment, and the ever-growing ability to work remote in the era of the Internet."


This chart above shows that gas prices have a very weak influence on driving behavior.   For policy wonks Mr. Short includes an interesting discussion of various considerations in analyzing the data.

All this points to increased interest in carsharing, bicycling and bikesharing systems, walking and transportation alternatives in general, especially in urban areas.  

Mr. Short links to a US PIRG report (PDF) prepared by the Frontier Group detailing the reasons for a relatively shart decline in 16 to 34 year old group - 23% decline in VMT since 2004 - including the much talked about substitution of social networking platforms (i.e. smartphones) for driving. It includes information from the Zipcar millennial survey and discusses implications for future transportation policy in the US.   A slide deck from the report can be found here

Friday, March 22, 2013

The Ides of March

March has been a busy month in the world of carsharing executives, although perhaps not quite as bad as it was for Julius Ceasar:

Zipcar Shake Up — CEO Scott Griffith unexpectedly announced his resignation, immediately after the Avis deal was completed.  He handed the reins over to the COO Mark Norman.  Scott joined Zipcar in 2003, replacing co-founder Robin Chase.
Mark Norman and Scott Griffith in earlier times.
"We’ve built an incredible company; we’ve taken a big idea and turned it into a larger than life brand at the leading edge of an expanding global category; we’ve developed a technology platform that has become the industry standard; we’ve inspired the development of collaborative consumption; and we’ve sparked a major behavior shift in the areas of urban and campus mobility."
Full letter here.

My sense is that Scott had the complicated, and perhaps thankless job, of trying to reconcile conflicting needs major investors, apparently interested in getting their investment, getting the company to a marginally profitable place, and trying to grow the business at the same time.

Although the blogosphere was breathless with early commentators talking about Avis could ruin Zipcar, there's certainly been no evidence to date.  Perhaps the first fruit of the merger has been the announcement of Zipcar at airport locations (!) at all three major airports in in New York City - located in the Avis parking areas, not surprisingly.  The initial batch of vehicles appear to be pretty standard sedans, with no BMWs or lifestyle vehicles (yet).  And they are round-trip cars (must be returned to the airport) and not one-way vehicles, as Hertz On Demand offers between the airports and Manhattan locations.


So best of luck to Mark Norman as he gets to put his own imprint on the next chapter of world carsharing.  And I hope Scott is vacationing in some exotic location while considering his next move. 

RelayRides Departure — Many in the P2P carsharing world may have missed the low-key announcement that founder Shelby Clark made the decision to move on to his next adventure.   He had already been moved into a special role of Chief Community Officer two years ago so the Founders aura had already worn off.   

I had the pleasure to work with Shelby during the early days of RelayRides, working with the initial team to help set up the pilot project in Cambridge and later doing some interesting market research prior to the San Francisco launch.  RelayRides has evolved considerably since these early days and along the way struggled mightily to figure out their technology approach.  A recent announcement celebrating the first anniversary of "going national" (rather than a city by city approach) shows just how far RelayRides has come — cars in all 50 states, 45 times growth in active fleet and reservations hours up 7 times.

Whipcar founders Vinay Gupta (left)
and Tom Wright 
Mysterious Demise of Whipcar — Talk about cryptic, Whipcar announced on Monday, March 12 it was shutting down.  The only explanation they've offered, so far is this:
"However, while so many of you saw the future, we have discovered there are still barriers to widespread adoption of peer-to-peer car rental in the UK. As a small team with limited resources, we have taken a good long look at these scaling challenges. And, after much thought, we have made the extremely difficult decision to close WhipCar. We would like to thank our wonderful community members, our colleagues and our investors for their incredible support over the past three exciting years."
One wonders exactly what the "barriers to widespread adoption" they have in mind?


Some Thoughts — One certainly gets the sense that P2P carsharing may be struggling a bit these days, at least in the North America and the UK.  But I wonder if any new business could meet the heady expectations we all had for P2P in the early days — expanding into the suburbs, putting traditional carsharing companies out of business within a few years, etc.  

Some P2P companies have struggled to find an affordable in-car technology solution that could scale with their hoped for growth, while others have opted out of car technology game altogether and chosen to occupy the P2P car rental niche, instead.

And marketing P2P carsharing is only slightly different than marketing traditional carsharing.  The P2P companies have proved that people will list their cars for rent by others and that only $100-$200 per month income is sufficient reward.   The challenge for all carsharing continues to be getting drivers/renters past the perceived convenience of car ownership continues to be a huge hurdle in a country with  cheap gasoline, low taxes on cars and abundant parking in most places.