Evaluating Carsharing Benefits

Abstract

Carsharing is an automobile-rental service intended as a substitute for private-vehicle ownership. Carsharing emphasizes affordability and convenience. Vehicles are located near residences, rented by the hour, and require minimal effort to check in and check out. Carsharing services are common in some European countries and are increasingly common in North America. Carsharing gives consumers a practical alternative to owning a personal vehicle that is driven fewer than 10 000 km (6,000 mi)/year. Carsharing has lower fixed costs and higher variable costs than private-vehicle ownership. This price structure makes occasional use of a vehicle affordable, even to low-income households. It also gives drivers an incentive to minimize their vehicle use and to rely on other travel options as much as possible. Carsharing typically reduces average vehicle use by 40 to 60 percent among drivers who rely on it, making it an important transportation demand-management strategy. Despite these benefits, the use of carsharing is growing slowly and will need to overcome several barriers to achieve its full potential.

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