If you've gotten this far, you probably understand the benefits of car sharing. Car sharing services can range from a couple of neighbors sharing vehicles and scheduling them with a clipboard to a full scale business enterprise - with infinite variations in between.

If you want to bring car sharing to your community there are a couple of ways to approach it. If you're not familiar with the business, here are the basic elements to consider along with some references to sources of additional information: Business form and raising capital, Insurance, Cars, Member Access, Scheduling, Billing, Marketing.

As of 1/99 there is no such thing as a car sharing franchises, though CarSharing Portland is considering it some day.

The Business Form and Capital
Coop, non profit or for profit? Each type has certain advantages and disadvantages. Any business has a minimum amount of overhead that must be paid for out of sales. The goal is to grow as fast as possible to spread these costs out. If you have picked a good area, it may take 4-6 months for a vehicle to attract enough members to break even. CSP ratio is 1:15.

The real issue is raising enough capital to get (and keep) the service operating. Most "clubs" have an initiation fee that provides capital. Coops may also raise capital by "spending" part of the membership shares. Private businesses seek investors and pay dividends. Some states allow coops to pay non-member investors dividends as well.

Insurance
You want to provide your members with much more coverage than the standard auto rental insurance policy (state minimum liability). If you're leasing cars you'll probably have to carry comprehensive and collision as well. The insurance company will probably define the minimum driving record and want to screen your members. Coordination between car sharing services may allow members to "visit" other services.

Location
It's not primarily a matter of population density - it's whether people need to/want to drive a car every day. A mix of transit and bike usage for commute trips and pedestrian oriented services for shopping, entertainment etc. is probably more important than density alone.

Cars
Lease vs. own? Owning takes more capital but you may be able to make some money when you sell the vehicles in a year or 2. Leasing lets you get more cars are the road for less money up front. If you buy, fleet owners get special manufacturer's discounts but you won't get the loss-leaders specials you see advertised in the newspaper (although you can buy them directly).

Maintenance, towing service and vehicle cleaning must also be planned. Access to spare vehicle(s) in case one in the fleet is out of service may also be needed.

Member Access
Most groups put a lock box on the wall nearby where the car is parked. This makes it easy to swap cars when needed. CarSharing Portland puts the lock box inside the car and re-keys the drivers door of its cars (all same brand) to a common key which members have. Sooner or later an affordable ($500) on-board computer will be available to provide access as well as tracking usage.

Parking
Leased spaces in well lit, conveniently accessible area near where members live. One vehicle stations vs. multiple vehicle pods?

Scheduling
You can limit the hours people can make reservations to the times you're in the office or sub contract with an answering service (which probably don't have a computerized system). If a reservation costs $2 to complete, you won't make any money on a one hour trip. Touch tone phone system (with personal assistance during business hours) may be a good compromise.

Billing
Sending invoices, waiting 30 days for payment versus billing directly to credit card but losing 2.5%.

Pricing the service

• $ Hours + $ miles/kilometres
• Usage packages (volume discounts).
• Business memberships.
• Penalties.