Webinar Recap: Car Sharing in North America

From New York’s bustling streets to San Francisco’s tech hubs and Canada’s diverse cities, car sharing is revolutionizing mobility in North America. Our panel discussed car sharing trends, successes, and challenges; here are the highlights.

Table of Contents

• How do you evaluate and decide what new neighborhoods or markets to enter?
• How do you balance profitability and long-term growth?
• How can car sharing operators tackle the challenges of parking and urban congestion?
• Why have European operators had a hard time establishing themselves in North America?
• Mobility as a Service (MaaS) collaboration initiatives
• North American car sharing operators’ top competitor

How do you evaluate and decide what new neighborhoods or markets to enter?

Deciding on new markets for car sharing expansion requires a balanced approach of data-driven insights and intuitive judgment. Evo’s expansions into Burnaby and Nanaimo illustrate this process effectively. Key criteria for evaluation include:

• Population density and demographics
• Presence of robust transit systems and walkability
• Commercial infrastructure and points of interest
• Support from local governments

How do you balance profitability and long-term growth

Marco Viviani, Communauto’s VP of Strategic Development, emphasized that car sharing is a long-term business that requires patience and strategic vision.

To balance profitability with sustainable growth:

• Focus on volume and affordability
• Control costs
• take a long-term perspective
• Prioritize steady growth over rapid expansion

By maintaining this balanced approach, car sharing businesses can achieve profitability while continuing to expand their impact on urban mobility over the long term.

How can car sharing operators tackle the challenges of parking and urban congestion?

Zipcar’s Head of Marketing and Public Policy, Justin Holmes shared an effective strategy they’ve been using for the past decade: working directly with cities to access curb space for parking their vehicles. This approach has seen substantial growth in partnerships with both free-floating and round-trip car sharing services in major cities like New York.

Another growing trend is partnering with residential developers to offer car sharing as an amenity. As people relocate to cities, this presents great opportunities for car sharing operators to integrate their services into new urban developments.

Why have European carsharing operators had a hard time establishing themselves in North America?

European car sharing operators face distinct challenges when entering the North American market. These challenges are primarily due to differences in mobility culture and market maturity. Pam Cooley, Executive Director of the Car Sharing Association, explained that while Europe has a well-established car sharing ecosystem, North America presents a ‘colder’ market where car sharing is less ingrained in the culture.

The North American expansion process demands a different approach and level of commitment compared to European operations. Operators aren’t simply offering a service but often pioneering a new mobility concept in many regions. This pioneering role is further complicated by North America’s unique regulatory landscape, with varying state and local regulations posing additional hurdles.

European operators must be prepared for a more challenging, resource-intensive, and time-consuming expansion process in North America.

Mobility as a Service (MaaS) collaboration initiatives

Co-opetition, a term coined to describe a collaboration between competitors, has emerged as a powerful strategy in the North American car sharing sector. An example of this approach is TransLink’s 2018 RideLink initiative in Vancouver, Canada, which united car-sharing, bike-sharing, and public transit providers to simplify access to shared transit options.

Amitis Khorsandi, Director and Founding Member of Evo Car Share, explained that the collaboration was driven by a shared mission to reduce reliance on personal vehicles. While integrating different operations and technologies posed challenges, the project’s progress demonstrates that competition can lead to innovative solutions and enhanced service offerings in the car-sharing industry.

North American car sharing operators’ top competitor

Despite the diversity of the North American car sharing landscape, with over 70 operators identified in our white paper, all face a familiar opponent: the deeply ingrained culture of personal vehicle ownership. Justin Holmes highlighted the emotional and societal equity invested in car ownership as a persistent challenge for car sharing operators.

Despite the diversity of the North American car sharing landscape, with over 70 operators identified in our white paper, all face a familiar opponent: the deeply ingrained culture of personal vehicle ownership. Justin Holmes highlighted the emotional and societal equity invested in car ownership as a persistent challenge for car sharing operators.

More from the webinar

Our panel of experts also touched on working with local governments, car sharing in rural areas, EV’s and other future trends, and more. You can watch the full webinar recording here if you missed the live session or want to revisit the discussion. You can also download the Car Sharing in North America white paper, which was central to a lot of the discussion.

Car sharing in North America is poised for significant growth, driven by innovative strategies, strategic partnerships, and a focus on overcoming the cultural attachment to personal vehicle ownership. Amitis puts it, there are still many hurdles to overcome, but the technology is there, and we are all excited to be a part of it.

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