• Shem L. Posted: 5/11/2011 8:12pm PDT

    Carsharing will become a major mode choice, but it will take time. For carsharing to be a viable the cars need to be conveniently located and there needs to be an enabling transit system. But the cars need to be in use 5+hrs/dy to cover costs. Providers face a dilemma of distributing cars sparsely and face lower utilization rates; or closer together and farther away from potential customers. As carsharing grows, the problem decreases as more customers in each area allow for both proximity and sufficient utilization for profitability. As it grows, a positive feedback loop forms w/ more cars closer to more customers - increasing utilization rates. This increases demand for public transit which then increases the viability of carsharing.

  • ljamesjohnson avatar ljamesjohnson Posted: 5/4/2011 2:45pm PDT

    Great suggestions. I'll look into it to see if there is a follow-up story there. Thanks.

  • Jaden Y. Posted: 5/4/2011 12:40pm PDT

    I think it's a tough call for car sharing companies to make a profit when they have to deal with inventory, and it all trickles down from the manufacturing of the car itself. Maybe peer-to-peer car sharing have a better chance of making profit. The "inventory" comes from a community of people who are willing to bring their cars into the pool to share, and the people will be making most of the profit. One of the companies I'm interested in doing that with is JustShareIt, which seems to provide ultra security and insurance to cover the risk of sharing a vehicle. Check out the defination of p2p car sharing at http://en.wikipedia.org/wiki/Peer-to-peer_car_rental