We’ve been working on a car sharing industry analysis together with fleet management experts, Ecoservice, to produce a whitepaper entitled: Four Concepts to Help Solve the Relocation Problem. We interviewed industry experts as well surveyed users in two North American markets to find out what works and what doesn’t. This post will provide an overview of what you will learn in the full whitepaper, which you can request here.
Car Sharing industry analysis whitepaper
the problem of fleet relocation
While free-floating carshare operators provide immense value to their members and a completely different way to implement carsharing into their lives, allowing for pick-up and drop-off to occur anywhere within their home areas, the single biggest problem remains a challenge: the relocation of vehicles. The simple issue of supply and demand works like any other. The better the vehicles are balanced, the more they will be utilized, the happier the members will be, and the more revenue will be earned for the operators. However, this problem is more than just a balancing act.
How do operators create an optimum balance between supply and demand throughout their service area? It’s not easy to achieve because the efficient coordination of cars is as difficult as herding cats.
Daily Fleet Management
The Role of Software in Relocation
The Cost of Relocation
Dynamic drop-off pricing
Dynamic Pick-Up Pricing
What if the cost of the relocation efforts could be transfered to the member but without inconveniencing them in their journey? That’s the underlying idea of the delivery fee concept. This one yielded very polarizing results and interest seems to be based on income level of users.
The last concept we tested were shuttle groups: this concept has been tested with students by Catch-a-Car in Switzerland. Essentially you as a user decide if you would like to help with relocation and as a reward you receive either driving credits or a discount.
As a new or existing free-floating carshare operator, the real question is: can you afford to not know how to cost-effectively relocate your vehicles? As one of the major expenses in the business, we encourage you to fully understand the opportunities in this car sharing industry analysis.
You can request the full whitepaper from us here.