2. Key question: is car-sharing a feasible and sustainable
mobility option in the developing countries?
Project timeline: 2011/09-2013/09
Countries in focus: China, India, Brazil, Turkey, Mexico,
South Africa
Research team:
• EMBARQ Global: Clayton Lane, Aileen Carrigan, Heshuang Zeng
• EMBARQ India: Chhavi Dhingra, Rebecca Stanich
Overview
3. Research Scope and Methodology
Key Findings
• Current Status
• Barriers and Opportunities
• Key finds by city
• Bangalore: market interest, operation models, impacts
• Hangzhou: market interest, operation models, impacts
Outline
4. Current Status:
• The rapidly growing trend
• Increasing variety of Car-sharing services
• Being Mainstreamed in developed countries (IPO/new players)
Background: Car-sharing Worldwide
(Data source: Shaheen and Cohen 2007, 2012)
5. Positive social and environmental impact in the established
market (reduce VKT; delay or replace car purchase)
Different context in terms of urbanization, motorization and
transportation infrastructure
Largely unknown in developing countries
Is Car-sharing a Feasible Option?
Region No. Vehicles
Replaced
Percent VKT
Reduction
North America 6 to 23 28 to 45%
Europe 4 to 10
7.6 to 80%
(Ave. 40%)
8. What is the current state of the industry in developing
countries?
What are the potential markets?
What are the main barriers and opportunities to
implementation?
How should car-sharing systems be designed?
What might be the societal and environmental impacts?
Research Questions
9. Methodology
Literature
Review
• Overview on existing
knowledge
• Assumption for
expert Interview
questions;
Expert
Interviews
• Reached 26
interviewees in 11
countries
• Current status update
• Test the assumption of
barriers and
opportunities (CSOs)
• Develop hypotheses to
test for focus groups
and Inform city
selection
Focus
Groups
• Test hypotheses
from expert interview
• Bangalore, India and
Hangzhou, China
• Collect fist-hand
understanding from
users’ perspective;
Final
Report
• Report on “car-
sharing in developing
countries”
• Presentation
10. Sources of Insights
Mobility experts
• literature review
• expert Interviews
Car-sharing
operators
(supply)
• expert interviews;
• focus groups
Potential/existing
users
(demand)
• focus groups
11. Hangzhou, China
• 48 participants
• Young working professionals
• 24 car owners, 24 non-car owners
• 12 EVnet Members
Bangalore, India
• 44 participants
• 27 IT professionals, or primary users; 17 secondary
household members
• 20 with access, 24 with no/limited access
Focus Groups
12. Hangzhou
• State capital, 180 km
from Shanghai
• Population – 8.7 Million
• GDP per capita: 12,320
USD
• Modal split in 2000 –
42.8% bike, 22.25% bus
, 27.6% pedestrian and
private vehicles – 2.6%
Hangzhou
13. • Capital of the state of
Karnataka;
• Population – 8.5 Million
(2011)
• GDP per capita: $3,963
• Modal split of motorized
trips – public transport
42%, 2-wheeler 38%,
auto-rickshaw 11%, and
cars 9%
Bangalore
14. Car-sharing Industry is very small but growing fast;
Market interest varies from place to place;
Faces unique barriers and opportunities such as aspiration
to car ownership/usage and congestion;
Car-sharing operators adopt the existing business models to
local context; Focus Groups identify new user requirements;
Increase the access to auto mobility; Potential to delay/place
car purchase plan in Hangzhou and to the less extent in
Bangalore.
Key Findings
15. Emerged recently – first CSO Zazcar (2009)
Small, but growing very rapidly
Activeness differs by region
Mostly two-way systems
Emergence of other related modes
• ride-sharing, peer to peer (Brazil, China);
• shared taxi (China);
• with-chauffer car-rental, self-drive car rental, radio-rickshaw
(India)
• Uber (China, India, Brazil)
Current Industry Status
16. Current Industry Status
System Name City Country
Business
Model
Start date
Fleet
Size
Membership Status
Caronetas San Paulo Brazil ridesharing 2010
800,000+(15,0
00 active
users)
Operational
Zazcar São Paulo Brazil 2-way 2009 60 3,200+ Operational
Edoauto Beijing, China 2-way 2009 200+
20,000+(***
active users)
Operational
Evnet Hangzhou China 2-way 2011 138 9915 Operational
Rent-a-Reva Gurgaon India 2-way 2011 4 357 Cancelled
Zoom Bangalore India 2-way 2013 50
7000 (3500
active users)
Operational
Carrot Mexico City Mexico 2-way 2012 60 2500+ Operational
Ubicar Mexico City Mexico 2-way 2012 25 Operational
Mobilizm Istanbul Turkey 2-way 2011 Operational
Atlagit Istanbul Turkey 2-way 2010 2 55 Cancelled
YoYo Istanbul Turkey 2-way Operational
Date: January 2014 ( system in red are those we interviewed)
17. Barriers and Opportunities
Area Barriers Opportunities
Potential Users
• Strong aspiration for car-
ownership
• Unfamiliarity with CS service
• Desire for car access
Transportation
Infrastructure
• Congestion
• Insufficient public transport
infrastructure
• Limited Parking for car-
sharing
• Low-car ownership rates
• Poor taxi and rental car
options (China)
• Limited parking for private
vehicles
Governance
• Lack of driving and criminal
records and personal credit
system;
• Import taxes on vehicles;
• Public policy unfamiliar with
car-sharing
• Car restriction affecting CSOs
• Congestion- vehicle travel
restriction
• Air pollution – promote the
clean vehicles
• Improvement on public
transport system
Business
• Contextualized operational
technology unavailable
• Limited access to capital
• Low labor cost
18. Users – young and well-educated/ non car-owners /median
or lower-median income
Trip types - weekend trips /occasional shopping and
leisure/ business
Market interest varies by region
• Hangzhou – young working professionals
• Bangalore – less interested than Hangzhou; but IT
professionals with no or limited access show large
interest
Market potential influenced by the urban context – demand
& supply
Market Interest – Users and Trip Types
19. Some CSOs have developed contextualized operation models.
Modifications are key to success.
Pricing Strategy: Distance-based gasoline charge + hourly
rate, free membership, special package
Respond to congestion: no return time/call in service.
Localized technology (self-developed or purchased)
Marketing and communication strategies
Seek governmental support
New financial model
Existing Operation Models
20. Overall Market Interest in Bangalore
60 % of primary and 50% of secondary participants indicated that they
would be interested in using carsharing services
Those not in favor had preference to own vehicle or non-inclination to
drive or perceived the car sharing process to be cumbersome.
17
9
10 8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Primary Secondary
Percentageofrespondents
Would not be
interested
Would be
interested
21. Market Interest by Car-ownership Vs. access
In the primary group, out of 27 participants, 16 were car owners,
however only 13 has access to a car when they needed it, whereas the
remaining 14 did not.
Similarly in the secondary group, though 15 of the 17 participants
interviewed owned cars in their households, only 7 had access to it.
16
13
15
7
11
14
2
10
0
2
4
6
8
10
12
14
16
18
Owncars
Haveaccess
Owncars
Haveaccess
Non-owners
No/limitedaccess
Non-owners
No/limitedaccess
Primary Secondary Primary Secondary
Numberofparticipants
22. Market Interest by Car-ownership in Bangalore
Working professionals who did not own a vehicle had the maximum
interest in using carsharing, followed by secondary members whose
household already owned one car.
Predictably, secondary members whose households had two cars, did
not express interest in car sharing.
9
1 7
8
1
0
2 1 7 4 1 3
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Primary Secondary Primary Secondary Primary Secondary
0 1 2
Percentageofresponses
Cars owned per household
Would not
use CS
Would use
CS
23. Preferred Potential Car-sharing Trip Types in Bangalore
Primary users use cars followed by 2 W for almost all trips.
Secondary users use cars followed by public transport, 3W and cabs.
Leisure (including out of town) and shopping (trip chaining) were cited
in majority (almost 70%) for carsharing. Work trips came third.
Low preference for healthcare and education trips- possibly due to their
urgent nature
14
17
3
9
1
Shopping
Leisure
Health Care
Work
Education
24. Operation Models – What else do Bangalore users want?
“It should feel like a new car,
not ‘somebody else’s’ car”.
Strong preference amongst
males for luxury vehicles and
SUVs.
Lukewarm response to Evs
Willingness to walk up to 10
minutes to access a
carsharing station
Preferred location residential
complexes, offices, airport,
major public transit stations
At around INR 200 (EUR2.8)
per hour, the pricing
competitive with hired taxis.
Prefer distance to time-based
1
4
1 2
3 5 3 6
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Percentageofresponsesineach
category
Yearly household income
Unacceptable Acceptable
Acceptability of price of
carsharing (2.8EUR/hour) in
Bangalore
25. Social benefit of increasing users’ access
Carsharing to avoid parking and maintaining hassels, etc.
Current car owners did not wish to give up using their cars
for carsharing and even if they did so, they didn't necessarily
anticipate having to travel any less thereafter.
29% IT professionals, 31% secondary members would
consider delaying (usually second) car purchase
Uncertain impact on VKT, GHG emissions
Overall on a national level, focusing on public transit, biking
and walking infrastructure was identified a more pressing
need than planning for carsharing systems ( view of experts
and current focus of Government)
Social and Environmental Impact - Bangalore
26. Most young working professionals interested.
Nearly ½ participants might use carsharing at least three
times a month.
Market Interest Users in Hangzhou
Perception to Carsharing
(will you try carsharing
service)
Estimated or current
usage frequency
Total
Non Users
No - 2
Potential Light
Users
Yes
No more than once a
month
12
Potential
Moderate users
Yes
Between once to three
times a month
11
Potential Heavy
Users
Yes
At least three times a
month
23
Table 1. Four types of users
27. Market Interest Users in Hangzhou
Non-car owners are more interested
0
2
1
11
5
6
18
5
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Non Car Owner
Car Owner
Non users Light users Moderate users Heavy users
28. Largest interest: median and low-median income groups
Market Interest Users in Hangzhou
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2501-5000 5001-8000 8001-11000 11001-13000 13001-18000 18001-23000
Pesonal monthly income (RMB/month)
Non users
Light users
Moderate users
Heavy users
29. Non-car owners seek auto mobility for weekend leisure trips
Strong interest for hometown visit trips
Less interest in shopping trips
Competing modes: car rental and taxi
Market Interest Trips in Hangzhou
A summary of modal split of non-car owners (unit: # of participants)
Trip types
Personal
mobility
(rental car,
car-sharing,
borrow from
friends) Taxi Bus Mixed modes
Biking and/or
walking
commute 1 0 11 3 1
shopping 2 8 1 5 5
leisure 13 6 1 1 0
30. FOCUS GROUP FINDINGS
Most want carsharing to be operated like bike-sharing;
Easy access to stations - dense carsharing network well
integrated with PT
Preferences of vehicle types
• Compact vehicles are acceptable for nearly half of participants
• A variety of fleet or “bigger cars” options will be good – some want
luxury cars for occasional usage
• Most are open to EV/HEV, but mostly due to cost considerations
Operation Models – What else do Hangzhou
users want?
31. Social benefit of increasing users’ access
Suggest delaying or replacing car ownership
• Nearly half participants’ car purchase plans might be
affected (17 delay & 5 replace);
• Among 16 participants who recognized the status of cars,
1/2 might delay or replace vehicle purchase plan.
Uncertain impact on VKT, GHG emissions
• delay or replace car ownership
• increase the usage of non car owners
A way to introduce electric vehicles
Social and Environmental Impact - Hangzhou
32. Hangzhou: Delay or Replace Car Purchase
Plans
Total
# who would
delay 1st
vehicle
purchase
# who would
replace 1st
vehicle
purchase
# who would
delay 2nd
vehicle
purchase
# who
would
replace
2nd
vehicle
Car Owners 24 - 0 5(3) 2
Non Car
Owners
24 12(6) 3 - -
Potential large impact delay/replace 1st vehicle purchase
in the household
*the number in the () = the number of Evnet members.
33. Car-sharing Industry is very small but growing fast;
Market potential varies from place to place;
Faces unique barriers and opportunities such as aspiration
to car ownership/usage and congestion;
Car-sharing operators adopt the existing business models to
local context; Focus groups identify new user requirements;
Increases access to auto mobility; potential to delay/replace
car purchase plan in Hangzhou and to lesser extent in
Bangalore.
Key Findings
35. Rapid urbanization and motorization:
• 600 million new urban population in India and China by 2030;
• By 2030, light auto sales in China, India, and Brazil are expected to
nearly double those sold in the U.S. and Europe combined.
Asia, Africa and Latin America are home to over 75% of the
world’s urban population but account for only 10% of the
global car-sharing membership (mostly in Japan and
Singapore).
Opportunities in Developing Countries
BACKGROUND
36. OUR SCOPE AND METHODOLOGY
The 26 interviewees were grouped into three categories and
covered the following geography
Categories of expertise
mobility experts
Car-sharing operators
others such as technology providers
Regions:
Brazil, China, India, Turkey, Mexico, and South Africa.
U.S., Germany, France, Canada, and Singapore
Expert Interview
37. Operation Models responding to Barriers and Opps
Barriers and opps on users Solutions
• Unfamiliarity with car-sharing
• Aspiration for vehicle ownership
• Marketing and communication strategy
(print-outs or online info on cost-saving and
environmental benefits)
• Price-sensetiveness • Pricing strategy (free membership, special
package, distance combined with hourly
rate)
• Liability concern • Photo-taking at service, peer evaluation
38. Operation Models responding to Barriers and Opps
Barriers and opps on transit
infrastructure
Solutions
• Limited parking • Working w/ real estate developers, industrial
parks, universities
• Seek for government support (Hangzhou
and Mexico City)
• Congestion • Allow flexible return time (Brazil);
• Call-in service to change return time (China)
• insufficient public transport
infrastructure
• Stations planed in transit-friendly
neighborhood selectively
• Arrange limited number of stations close to
each other (Mexico City)
39. GOVERNANCE
Operation Models responding to Barriers and Opps
Barriers and opps on
governance
Solutions
• Lack of driving records • Test driving to check the driving skills
• Lack of credit system • Pre-paid system and third party payment to
overcome the lack of credit system (China)
• High tax on vehicles • New financial model for vehicle selection
and vehicle management (Brazil, China);
• EV promotion • Apply EV fleet in Car-sharing service and seek
for government support
40. BUSINESS
Operation Models responding to Barriers and Opps
Barriers and opps on
governance
Solutions
• no localized technologies
available
• Modify the technology (Brazil);
• Self-develop the technology (China)
• limited access to capital • Self- funded and start small
• Seek to scale up when the business model is
more mature
41. Hangzhou
Fast urban expansion
Fast motorization - #of motorized Vehicles in 2011
reached 2.1 million
Travel Restriction
• Peak hour weekday travel restriction to keep one fifth of vehicles
out of streets;
• Travel restriction around West Lake to keep half vehicles out of
west lake zone.
Constructed urban area
(square kilometer)
# of motorized
vehicles (million)
2001 180 0.39
2011 550 2.14
42. Carsharing and PT in Hangzhou
Metro Bus Carsharing Parking Lot
Public bike
Station/lane
s
Highway
entrance
Sidewalk
Overall
Score
1.905 2.879 3.089 3.111 3.786 4.600 5.045
Overall
order
1 2 3 4 5 6 7
Non Car
Owner
Score
2.318 2.467 2.435 3.176 3.929 5.600 5.300
NCO order
1 3 2 4 5 7 6
Car Owner
Score
1.450 3.222 3.773 3.053 3.643 4.100 4.833
CO order
1 3 5 2 4 6 7
(Lower score indicates higher priority)
Carsharing show great potential of fitting into Hangzhou’s public
transport network.
Editor's Notes
CD
HS
Perception to Car-sharing (Q: will you try car-sharing service)
User type decided by estimated or current usage frequency
Non users
-no interested
Light Users
No more than once a month
Moderate users
Between once to three times a month
Heavy Users
At least three times a month
Heavy users
18 out of 23 are non car owners
Most members are heavy users (10/12)
Note, we have 12 member participants, so the results in China might be more positive than the reality.
HS
Test price for FG:
The current price for carsharing in Hangzhou is 19-27 yuan (2.13-3.38 euro) per hour with the gas charge of 0.2 to 0.9 yuan/km (0.03-0.11 euro/km).
5 hour package – 5 hours 60 yuan, hourly rate is only 1.5 euro/hour.
Income reveals as a key factor in determining the usage (note, aver. Income in Hangzhou is about 400 euro per month)
Most of heavy users’ income are below 1375 euro/month – people with higher income tend to buy a personal vehicle and won’t use carsharing that often
In the figure, the green bar indicates the income distribution of light users – people with income level higher than 1625 euro/month are all light users – this group are more likely to own a car.
HS
Less demand for shopping trips in China is because the old city is usually compact and people can access to shopping area by bike or on foot; plus, taxi in Hangzhou is really cheap
Competing modes: car rental and taxi
Taxi is a competing mode to CS in occasional trips,
Car rental is a competing mode to CS in weekend trips.