Car Sharing

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Car Sharing

Category : Articles

Sandrine Hoffmann
Jones International University
BBA304
Dr. Ina-Ann Freeman
10/20/2012
Daimler/BMW ??“ A New Breed of Driver

Car sharing

The vehicles of a car-sharing organization are usually distributed on fixed leased parking in a city or large town. The locations are often located at intersections of public transport where they are easily accessible by the members. The vehicles are usually used in order to get from this particular location to another location. In contrast to rental cars, these cars can be used on an hourly basis. Car sharing is effective only in a well-developed public transport and with “combined mobility”. It cannot and will not replace public transport that serves as a feeder to the parking lots. For commuters who are able to commute by car, it is usually not a viable alternative; the more appropriately alternative would be carpools and rides. The concept is intended more for irregular tours or transport.
1. Discuss environmental factors related to population that are changing the way certain people approach car buying and are thus creating new market segments.
The social environment is changing and car ownerships have been declining and are expected to decline within the next 15 years. Many people are ready to participate in programs as car-sharing. After completion of two pilot projects, car2go is in the implementation phase since 2012. It consists of two-seater, powered by electricity or internal combustion engine of the small car brand smart fortwo. (Cengagebrain, 2012)
Social and cultural factors
Mobility is ubiquitous around the world and has always been a basic need of people. We meet every day – on the way to work, on holiday or at play. Mobility is in todays society an important indicator of progress and development.

The urge to be more independent and flexible, has mainly developed rapidly in recent centuries. As major urban centers become more crowded, car ownerships decline.
Political and environmental factors
Although the car ownership in Germany has declined since 2004 by about 4 percent, the population growth results an increase in car ownerships, which gives the German transport policy new challenges. In Vienna alone, costs of congestion fall within
2.4 billion euros per year. An average of 208 hours per year, a person in Vienna is stuck in traffic. In the relation to environmental vehicle traffic caused, the city loses of 275 million EUR per year. For all this, a mobility concept is to be found that protect the environment and the roads.
Technological factors
One of the newest and most innovative car-sharing concepts is car2go, which was developed by Daimler AG in 2008, implemented in Ulm (Germany) for the first time. The Pilot phase launched a year later, in Austin (Texas) (Carina Dorn, 2012, p.15). The aim of car2go is to ensure a more flexible use of mobility. This is so far implemented, as well as one-way trips are possible that means vehicles must not be returned to the pick- up location but to a personal target within the city. A transparent pricing system, a flexible availability of the CS-and environment-friendly vehicles, it, it should allow a future-oriented driving.

2. Describe the values held by this emerging group of drivers that incline them toward car sharing programs.
The benefits and opportunities also face negative aspects. Particularly in terms of the vehicles, different weaknesses, such as the vehicle size and the location constraint can be identified. On the positive side is to note the ease of use and ease of CS, and the possibility of combination with other transportations. The basic requirement is the possession of a car driving license. But are also characteristics and personal preferences of car- sharing members to be considered. On one hand, a high cost affinity and the other observed a strong sense of environmental awareness. ???Automakers are hoping to reach this emerging target market in major urban areas??”young, well-educated drivers, roughly age 18 to mid-30s, with good salaries, who are actively concerned about sustainability, pollution, and traffic congestion issues. (Cengage, 2012)
Strength
* Environmental friendly
* Cost transparent
* Flexible
* Users do not have to take care of gas and other costs
Weakness
* Bound to location
* Reservation is needed
* Mostly two-seater

Opportunity
* Combination with other transportation
* High potential because of less competition
Threats
* Car- ownership
* Availability
3. How are automakers using car-sharing programs to cater to customers??™ component lifestyles
* Tourists- due to the flexible use and easy applicability is particularly CS
popular with tourists visiting the city.
* Low mileage- car sharing is mainly for people, which drive less than 12,000 km / year to cover costs associated with benefits.
* Students- factors such as low net household income, a high level of education, an increased environmental awareness and openness to new forms of mobility speak for this group of people as users of car- sharing
* Families- since families have a high need of a second vehicle most of the times, car- sharing can be used as an replacement.
Since the transit cuts in Seattle and fewer busses are driving, car- sharing would be a great replacement/ extension for commuters. Since a membership can be obtained it would be very cost effective for commuters.

References
Cengagebrain. (n.d.). Retrieved from
http://college.cengage.com/coursemate/marketing/lamb_9781111964252/student/chapter_cases/mktg6_onlinecase_ch04_se.pdf

Dorn, Carina. (2012). Car2go. Retrieved from
http://epub.wu.ac.at/2992/1/Dorn.pdf