Car Clubs
- Summary
- Taxonomy & description
- First principles assessment
- Evidence on performance
- Policy contribution
- References
Car clubs are usually organised schemes, which members of the public can join to gain access to a vehicle for short periods of time. In parts of Europe and in North America, car clubs are often referred to as car sharing. Car clubs differ from hiring a car in that club members pay an annual membership fee and can book a car either by telephone or using the internet for anything from a couple of hours to a couple of days. A mileage fee is charged to cover fuel costs. In most clubs, members would collect and return the car from a centrally located parking bay with no administration beyond booking the vehicle. The cars are generally obtained through a long term lease from a hire company by the club organisers, although a group of individuals can establish their own club.
Car clubs are introduced as a means of reducing the need to own and use cars without loosing access to a vehicle. They can also be introduced to increase accessibility in rural and/or deprived areas. Car clubs can also be introduced as part of a low car housing scheme Fewer parking spaces are provided than in standard developments, with the car club as compensation. Car clubs are intended to bridge the gaps between full ownership and conventional car hire, ride sharing, public transport, walking and cycling.
Demand impacts may not necessarily reduce car use, but they can be incremental over time. With this in mind contribution to achieving key policy objectives can may not always be positive.
Terminology
Car clubs are usually organised schemes, which members of the public can join to gain access to a vehicle for short periods of time. Elsewhere in Europe and in North America, car clubs are often referred to as car sharing. Car clubs differ from hiring a car in that club members pay an annual membership fee and can book a car either by telephone or using the internet for anything from a couple of hours to a couple of days. A mileage fee is charged to cover fuel costs. In most clubs, members would collect and return the car from a centrally located parking bay with no administration beyond booking the vehicle. The cars are generally obtained through a long term lease from a hire company by the club organisers, although a group of individuals can establish their own club. Clubs can own anything from one vehicle to a few hundred, with the geographical area and number of club members served ranging accordingly.
A car club differs from conventional hiring in that access to the vehicles requires membership of the car club organisation and provides greater flexibility in that vehicles can be booked out for very short periods of time. This means that aside from the relatively small joining/membership fees, the member pays for use rather than access to a car for a whole day, weekend, week or other period. For example, a club member could book a vehicle for one hour in the morning and an hour in the evening, just taking possession of the car for those periods. Consequently, only those hours are paid for. To obtain the same level of access via conventional car hire, it is probable that the vehicle would need to be booked out for 24 hours at a much greater cost.
Styles of Car Club
The most basic, and therefore, lowest cost, model for a car club is a group of individuals purchasing a vehicle between them and making arrangements for using the car on a one to one basis. It is likely that the car would be based at a member's house in this situation. The club may not be seeking to grow, merely serve the needs of members, thus the desire for profit may be low. The geographical area served by the club is likely to be small. At the other end of the scale, clubs can be established in partnership with local authorities and/or transport operators. Vehicles can be obtained on long term lease from a hire organisation and be equipped with high tech access and tracking systems. The vehicles are likely to be parked at specified bays in the area served, and once booked can be accessed with a security tag identifying the bearer to an on board computer. The booking procedure is likely to be over the telephone via a call centre, and/or the internet. Additionally, the desire to expand and make a profit is likely to be greater. Thus, the geographical area served can eventually encompass entire countries. The Swiss scheme, "Mobility", which started back in 1987 now has nationwide coverage with 44,000 members in 350 communities, with 1,750 cars in 900 locations. Despite this, a common feature of nearly all clubs, is the need for community involvement and very often a committed community champion in the initial start-up phase. Once a club is established, links can be formed with public transport providers, giving members discounted public transport journeys. Such a link between Mobility and the Swiss railways resulted in rapid expansion of club. Mobility is also a member of ECS (European CarShare), an European umbrella group. Through this, Mobility members can access cars via other clubs in 80 European cities.
Levels of charge
The charges made by car clubs vary. The variability is a function of the level of technology involved, the cost of obtaining vehicles and the desire to make a profit. The larger and more sophisticated the club, the greater will be the administrative and staffing costs.
The charges made by two clubs in the UK are:
Woodgate car club in Leicester, a low tech club established and organised by members, charges £100 membership per year, plus £1.40 per hour of use. Three hours use per week would therefore cost £6.12 per week regardless of mileage. | |
BEST car club in Bristol, a higher tech club established and run in partnership with the local authority and transport operator, charges £25 joining fee, £100 one-off refundable deposit against accidents, £100 per year membership, £2 per hour of use and £0.15 per mile. Excluding the one off joining fee and deposit, three hours use per week would cost £7.92 per week plus mileage. Assuming 10 miles per week, the cost would be £9.42 per week. |
Source: Sheffield Hallam University, 2001.
Figures at 2001 prices.
For the purposes of comparison, hiring a small car (e.g. Vauxhall, Corsa) for a day can cost approximately £30 (2002 prices).
Technology
The level of technology involved at the outset of a club is often low, as nearly all are low-cost, community based organisations designed to meet local needs. However, as clubs grow the need for technology to facilitate smooth operations management grows. In line with this, rapid communications technology developments mean that the cutting edge clubs utilise and rely on very sophisticated technology. The use of such technology can also influence consumer perceptions. It is likely that the higher tech services are perceived as higher quality, more efficient and safer services. Technology can impact on the following areas of a club's operations, economic viability and service quality in the following ways:
- Vehicle performance, including environmental credentials
- Information and marketing
- Project management
- Reservations systems (kiosks, automated telephone and internet based)
- Interfaces with other transport systems, e.g. links with public transport
- Vehicle location
- Vehicle access
- Vehicle condition
- Trip logging and billing
- Dynamic mapping and on-board travel information
- Access to emergency services
List taken from Britton E. (Ed), 2000.
An example of the technology available is COCOS (CarSharing Organisation and Communication System). The central element of the system is an on-board computer including an electronic immobiliser, sensor-interface and electronic identification system. The on-board computer can also be connected with mobile data radio systems, contactless access control systems or electronic key safe boxes. COCOS is supplied by INVERS GmbH based in Siegen,Germany. http://www.casharingeurope.org/ext/invers_e/base.htm, 2002.
Why introduce car clubs?
Car clubs are introduced as a means of reducing the need to own and use cars without loosing access to a vehicle. They can also be introduced to increase accessibility in rural and/or deprived areas. Car clubs can also be introduced as part of a low car housing scheme see development densities. Fewer parking spaces are provided than in standard developments, with the car club as compensation. Car clubs are intended to bridge the gaps between full ownership and conventional car hire, ride sharing, public transport, walking and cycling.
Demand impacts
The impacts of car clubs are primarily on the demand for car travel. This will therefore contribute to transport policy objectives seeking to reduce congestion and the associated negative impacts. Where an individual accesses a car solely via a club or a household member joins a club as an alternative to purchasing a second vehicle, the demand for public transport, taxis, walking and cycling may also be greater than it would be if the car club did not exist and the individuals concerned purchased cars. Where an individual has purchased their own vehicle, the marginal cost of using other modes is higher.
Responses and situations outlines potential responses to car club membership and the situations in which particular responses are encountered. It should be noted that as use of car clubs is voluntary, the impacts are likely to be less than those resulting from measures which are imposed. Thus, impacts will be less than those resulting from urban road charging, for example. Urban road charging is designed to push drivers out of their cars, where as car clubs are designed to pull. However, impacts could be increased if use of car clubs becomes more wide spread. Greater take up could result from utilization of land use planning guidance and decisions to encourage more low car housing developments. As use of car clubs becomes more commonplace, the effect on uptake could become cumulative.
Responses and situations | ||
Response | Reduction in road traffic | Expected in situations |
For journey purposes that are not fixed in time, departure time may change to coincide with vehicle availability. | ||
Where the diversion is needed to collect and drop-off the car. | ||
Where membership of a car club provides access to a car that an individual previously did not have. | ||
Where access to a car via a club replaces individual ownership or a household owning a second vehicle.
Where the individual previously had very low car use (essential journeys only) and merely makes the same journeys in a new way. |
||
Where car club access to a vehicle replaces ownership or planned future ownership.
Where the individual previously had very low car use (essential journeys only) and merely makes the same journeys in a new way.
Where the individual previously travelled by public transport, walked or cycled. |
||
Where an individual sells their car and relies solely on the club or a household sells their second car. | ||
- |
= Weakest possible response | = Strongest possible positive response | ||
= Weakest possible negative response | = Strongest possible negative response | ||
= No response |
A change of home location may happen where a successful car club attracts people to live within its catchment area. Such an area could be deemed attractive because it allows access to a car club not available else where, or if it is a low car housing development, it could be that a relatively car free environment is deemed more attractive. However, unless there is a step change in willingness to be a part of a car club and the alternative modes available for journeys no longer made by car, such a response is unlikely. Further to this, if success involves expanding to provide access to club vehicles over a very wide geographic area, there may be no need to change home location.
Short and long run demand responses
There is some potential for considerable long run changes in demand response as a result of car clubs. The most significant responses will be where individuals sell their car, households sell a second (or even main) car or planned purchase of vehicles is permanently deferred. However, there are few countries in which car club use is wide spread. Thus, the long term demand response is dependent on how successfully car clubs are established. Success is likely to be a factor of image, quality of service and geographic coverage of that service. Whilst, there are some examples which are considered highly successful, access to a car via a club is still a minority choice in the areas served. Thus, we are only able to speculate what the long term demand response might be when a club is particularly successful. Demand responses illustrates the potential reactions.
Demand responses | |||||
Response | - | 1st year | 2-4 years | 5 years | 10+ years |
- | |||||
- | |||||
Change job location | |||||
- | Shop elsewhere | ||||
Compress working week | |||||
- | Trip chain | ||||
- | Work from home | ||||
- | Shop from home | ||||
Ride share | |||||
- | Public transport | ||||
- | Walk/cycle | ||||
- | |||||
- |
= Weakest possible response | = Strongest possible positive response | ||
= Weakest possible negative response | = Strongest possible negative response | ||
= No response |
An increase in taxi use may also result from car club membership. It is likely to follow the same pattern as increased public transport use and increased walking and cycling. All of these alternatives will only experience in increase in up take where car clubs are the sole means of access to a car.
Level of response
As with other measures, the price elasticity of demand varies with context. As with other calculations of price elasticity, the type of trip, type of traveller, price elasticity of related goods and services and whether the elasticity accounts for short term or long term demand responses are important influential factors in the calculation and interpretation.
Whether it is cheaper to access a car via a car club or sole ownership is a debatable issue. It has been suggested that for individuals in the UK with both low and high annual car travel distances (roughly 8000 and 16,000 kilometres per annum respectively) it is cheaper to own and run a small, second hand vehicle (Bonsall et al, 2001). Additionally, for exceedingly low mileage (e.g. only using the car to got to and from the supermarket once a week) accessing a car via a car club is likely to be more expensive than a combination of walk and/or bus, plus taxi for the journey home (Bonsall and Jopson, 2002). In countries where owning and running a vehicle is cheaper than in the UK, the mileage range where access to a car via a club is the cheaper option, when compared to ownership, may be even smaller.
Where club car use is the cheaper option and an individual sells their car, the reduction in cost would suggest scope for increased travel. Where this is increased travel by a mode other than the car, such an increase would not be contrary to transport policy aiming to reduce car travel.
If a car club is introduced to increase accessibility, there will inevitably be increased car travel. Such a need implies a lack of public transport. However, it is rare for there to be no such provision and many people are dependent on it. Where a car club is introduced, there may be abstraction from the public transport making it unviable. If it is then taken out of service, those who are unable to travel by car would be further disadvantaged. The risk is greater where there is already a very low revenue level or the service already relies on subsidy. Should access to a car also provide access to more distant supplies of goods and services, there may be abstraction from local provision, resulting in a reduction in and lack of local amenity.
Supply impacts
There will be no increase in the supply of road space, thus for many there will be no increase in supply, merely a change in the way the existing supply is utilised. If car clubs are introduced in deprived areas to increase accessibility, there may be some increase in the choice of modes so long as this is not negated by reductions in public transport service levels as a result of abstraction.
Financing requirements
If car clubs are to make a significant impact on transport policy objectives they need to attract as many customers as possible over as wide an area as possible. Clearly there is a need to start small and grow, but growth requires profit and reinvestment, whilst attracting customers to generate profit requires an image that appeals to the general public. Thus, so long as the higher tech car clubs can be made successful, they are likely to have greatest potential in terms of meeting transport objectives. Therefore, significant investment will be needed from the outset and this can include an element of subsidy.
The BEST car club in Bristol, UK required approximately £10,000 (year 2000 prices) to cover the feasibility study and set up costs. The local authority's transport plan indicates that a further £15-£20,000 (year 2000 prices) per annum will be needed to cover further expansion and development. This is not an insubstantial figure, but the potential benefits are clearly perceived as worthy of such investment. The potential benefits cited by Bristol City Council include fewer car journeys, which will in turn result in modal shift, making public transport more viable; increases in walking, cycling, home shopping and combined trips; alleviating parking problems; assisting energy efficiency; promoting social inclusion; reducing the need to own a car and providing cars for local business travel (Bristol City Council, 2000).
Expected impact on key policy objectives
Promotion of a car club can encourage people to increase or decrease their car use depending on how and why it is promoted. Clubs in affluent city areas and low car housing developments are designed to reduce car use. However, the promotion of car clubs in deprived areas where a high proportion of residents suffer some form of social exclusion may well increase car use as a means of increasing accessibility to meet social inclusion objectives.
Contribution to objectives | ||
Objective |
Scale of contribution |
Comment |
By reducing delays and improving reliability. Contribution may be greater where promoted as part of a low car housing development. | ||
By reducing community severance through reduced car use. | ||
By reducing air and noise pollution and pressures on green space and environmentally sensitive sites through reduced car use. | ||
By improving public transport conditions as a means of supporting access to a car via a club in place of ownership, although this is dependent on service levels being maintained, not reduced as a result of abstraction. | ||
By reducing traffic levels. | ||
By freeing up potentially productive time currently lost in congestion. | ||
Subsidy is often required to support clubs for the first few years of operation. |
= Weakest possible positive contribution | = Strongest possible positive contribution | ||
= Weakest possible negative contribution | = Strongest possible negative contribution | ||
= No contribution |
The impacts on policy objectives outlined in contribution to objectives when promoted to increase accessibility will all be more severe if the increased access to cars encourages people to purchase vehicles of their own. There is a greater risk of this where the increased access to transport has resulted in access to a higher income. Impacts may be further increased where abstraction from public transport results from increased car use and marginal service are no longer operated, thus, forcing further increases in car use.
Expected impact on problems
As with the contribution to transport policy objectives, the impact on alleviating key problems varies according to whether car clubs are promoted to reduce car use or increase accessibility.
Contribution to alleviation of key problems | ||
Problem |
Scale of contribution |
Comment |
Congestion-related delay |
Contribution may be greater when established in an affluent area or combined with low car housing development. | |
Congestion-related unreliability |
Contribution may be greater when established in an affluent area or combined with low car housing development. | |
Community severence |
By reducing traffic volumes. | |
Visual intrusion |
By reducing traffic volumes. | |
Lack of amenity |
Fewer car journeys could encourage use of local amenities. | |
Global warming |
By reducing traffic-related CO2 emissions. | |
Local air pollution |
By reducing emissions of NOx, particulates and other local pollutants. | |
Noise |
By reducing traffic volumes. | |
Reduction of green space |
By reducing pressure for new road building and city expansion. | |
Damage to environmentally sensitive sites |
By reducing traffic volumes. | |
Poor accessibility for those without a car and those with mobility impairments |
Where public transport is maintained to encourage access to a car via a club rather than ownership; by enhancing the reliability of public transport and subsidising services that may otherwise be taken out as a result of abstraction. | |
Disproportionate disadvantaging of particular social or geographic groups |
Where public transport is maintained to encourage access to a car via a club rather than ownership; by enhancing the reliability of public transport and subsidising services that may otherwise be taken out as a result of abstraction. | |
Number, severity and risk of accidents |
By reducing traffic volumes. | |
Suppression of the potential for economic activity in the area |
By improving the efficiency of the local road network, especially where combined with other measures. |
= Weakest possible positive contribution | = Strongest possible positive contribution | ||
= Weakest possible negative contribution | = Strongest possible negative contribution | ||
= No contribution |
*If promotion of car clubs were combined with much improved public transport to the extent that some people were able to sell their cars, these impacts would be greater.
The contribution to key problems outlined above will all be greater if the increased access to cars encourages people to purchase vehicles of their own, especially where the increased access to transport has resulted in access to a higher income. Impacts may be further enhanced where abstraction from public transport results from increased car use and marginal service are no longer operated, thus, forcing further increases in car use.
It should also be noted that increased accessibility may be better provided through public transport. If provision through a car club means that existing services are discontinued (as maintaining both is likely to be too expensive), those who cannot travel by car will be further disadvantaged.
Expected winners and losers
One would not expect everybody to benefit equally from any transport measures. Indeed, with a measure such as car clubs, which can potentially be promoted for very specific objectives, there can be many losers if mitigating measures are not included as part of a package.
Winners and losers | ||
Group |
Winners/Losers |
Comment |
Large scale freight and commercial traffic |
High value journeys – less time spent in congestion the greater the vehicle utilization – relatively small proportion of journey distance in urban conditions. |
|
Small businesses |
Where these are local and reduced car use encourages use of local amenities. |
|
High income car-users |
High income associated with high value of time. May use a car club if time taken to make a journey door-to-door does not increase. May benefit from reduced congestion |
|
People with a low income | Where they are able to gain access to a car. | |
People with poor access to public transport |
Where accessibility is increased they will benefit (assuming they have a driving licence) |
|
All existing public transport users |
Reduced car use will reduce congestion and improve public transport reliability. More also benefit from complementary service improvements. |
|
People living adjacent to the area targeted |
They may benefit from reduced congestion and improved or increased public transport supply. |
|
People making high value, important journeys |
These journeys may still be made as solo drivers, but reduced congestion will result in valuable time savings. |
|
The average car user | Where they are able to travel more efficiently, saving time and money. |
= Weakest possible benefit | = Strongest possible positive benefit | ||
= Weakest possible negative benefit | = Strongest possible negative benefit | ||
= Neither wins nor loses |
Barriers to implementation
Scale of barriers | ||
Barrier | Scale | Comment |
Legal | In some countries the legal and insurance status of those using club cars needs to be clarified. | |
Finance | While most costs are met by car club firms and members, cities may need to provide pump priming support, and also preferential parking and exemptions from charges. | |
Governance | Relationships between cities and (competing) car club operators may require care. | |
Political acceptability | There may be concerns that car clubs encourage car use at the expense of public transport. | |
Public and stakeholder acceptability | There are few adverse reactions to car clubs. | |
Technical feasibility | Technology is needed for booking and allocating cars. |
= Minimal barrier | = Most significant barrier |
CarSharing Portland
Context
Contribution to objectives and problems | ||
Objective | Portland | Singapore |
= Weakest possible positive contribution | = Strongest possible positive contribution | ||
= Weakest possible negative contribution | = Strongest possible negative contribution | ||
= No contribution |
Summary of each case study's contribution to alleviation of key problems | ||
Objective | Portland | Singapore |
Congestion-related delay | ||
Congestion-related unreliability | ||
Community severance | ||
Visual intrusion | ||
Lack of amenity | ||
Global warming | ||
Local air pollution | ||
Noise | ||
Reduction of green space | ||
Damage to environmentally sensitive sites | ||
Poor accessibility for those without a car and those with mobility impairments | ||
Disproportionate disadvantaging of particular social or geographic groups | ||
Number, severity and risk of accidents | ||
Suppression of the potential for economic activity in the area |
= Weakest possible positive contribution | = Strongest possible positive contribution | ||
= Weakest possible negative contribution | = Strongest possible negative contribution | ||
= No contribution |
Appropriate contexts
Appropriate area-types | |
Area type | Suitability |
City centre | |
Dense inner suburb | |
Medium density outer suburb | |
Less dense outer suburb | |
District centre | |
Corridor | |
Small town | |
Tourist town |
= Least suitable area type | = Most suitable area type |
Adverse side-effects
No particular negative side effects are noted, but the case studies above do not suggest particularly strong positive impacts. Thus, the costs involved in operating a car club (which can be substantial and require subsidy in the early years) may not represent value for money.
Bristol City Council, 2000, Bristol Local Transport Plan, Bristol City Council, Bristol, UK.
Bonsall P, 2002, Car Clubs in New Developments, supplementary report 1 on Car Sharing and Car Clubs: potential and impacts, report to Department for Transport, Local Government and the Regions and the Motorists Forum, Institute for Transport Studies, University of Leeds, unpublished.
Bonsall P et al, 2002, Car Sharing and Car Clubs: potential and impacts, report to Department for Transport, Local Government and the Regions and the Motorists Forum, Institute for Transport Studies, University of Leeds, unpublished.
Britton E. (Ed) (2000), Carsharing 2000 - sustainable transport's missing link, World Transport Policy and Practice, Volume 5, No. 3.Available at http://ecoplan.org/wtpp/
COCOS
http://www.carsharing-europe.org/ext/invers_e/base.htm, 2002 (as on 8th March 2002).
Jopson A and Bonsall P, 2002, The Potential Role of Car Sharing and Car Clubs within socially Disadvantaged Groups, supplementary report 3 on Car Sharing and Car Clubs: potential and impacts, report to Department for Transport, Local Government and the Regions and the Motorists Forum, Institute for Transport Studies, University of Leeds, unpublished.
Mobility CarSharing, Switzerland
http://195.65.210.72/e/index.htm, 2002 (as on 19th March 2002).
Sheffield Hallam University (2001), Community Car Share Network RideSmart Programme Assessment, unpublished report.
Useful websites
CarPlus (previously Community Car Share Network (CCSN))
http://www.carshareclubs.org.uk
Ecoplan
http://ecoplan.org/carshare
Car Sharing [car clubs] in Europe
http://www.carsharing-europe.org
European Car Sharing [car clubs]
http://www.carsharing.org
Car Sharing [car clubs] in North America
http://www.carsharing.net