capital carshare

Capital CarShare Business Plan

July 2012

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Table of Contents

Acknowledgments ..................................................................................................................................... 3

1| Executive Summary .............................................................................................................................. 4

2| Industry Overview ................................................................................................................................ 7

History of Car Sharing ...................................................................................................................... 7

Car Sharing vs. Private Vehicle Ownership ................................................................................... 8

Car Sharing in the Capital Region ................................................................................................... 9

3| Membership Characteristics & Location Selection ......................................................................... 11

Target Car sharing Audience ......................................................................................................... 11

Car sharing Feasibility Index .......................................................................................................... 12

Site Selection ..................................................................................................................................... 16

Car Sharing Pod Location Criteria ................................................................................................. 20

Other Considerations....................................................................................................................... 20

4| Fleet Infrastructure ............................................................................................................................. 22

Ownership Method .......................................................................................................................... 22

Loanation ........................................................................................................................................... 22

Fuel Type ........................................................................................................................................... 23

Fleet Model Recommendations ...................................................................................................... 24

5| Technology & Services ....................................................................................................................... 26

Services .................................................................................................................................................. 27

6| Price Structure ..................................................................................................................................... 29

Competitive Analysis ...................................................................................................................... 29

Developing Capital CarShare Membership Plans ....................................................................... 31

Business Membership ...................................................................................................................... 32

Penalties & Fees ................................................................................................................................ 32

7| Organizational Structure .................................................................................................................... 34

For-Profit vs. Non-Profit ................................................................................................................. 34

Organizational Oversight ............................................................................................................... 34

Staffing ............................................................................................................................................... 34

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8| Implementation & Future Growth.................................................................................................... 36

Growth Patterns ............................................................................................................................... 36

Implementation Timeframe ............................................................................................................ 36

9| Financial Outlook ................................................................................................................................ 38

Tables & Figures

Table 1: Cost of Vehicle Ownership vs. Car Sharing ............................................................................ 8

Table 2: Characteristics of Car-sharing members ................................................................................ 11

Table 3: Car sharing Feasibility Index - Indicators & Weightings .................................................... 13

Table 4: Potential Car-sharing Vehicle Models .................................................................................... 25

Table 5: Car sharing Membership Plan Comparison .......................................................................... 30

Table 6: Capital CarShare Membership Plan Tiers .............................................................................. 31

Table 7: Abbreviated Schedule of Fees ................................................................................................. 33

Table 8: Capital CarShare Financial Projections .................................................................................. 39

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Acknowledgments

The Capital CarShare consultant team would like to acknowledge the assistance of the

following organizations and companies in providing invaluable information and guidance for

this plan.

Buffalo CarShare

Community Loan Fund of the Capital District

Ithaca CarShare

Metavera Solutions

PilotFish Networks

Porter & Curtis, LLC

University at Albany, State University of New York

In addition, this report would not have been possible without the support of the Feasibility

Study Committee:

Albany Parking Authority

Capital District Transportation Authority (CDTA)

Capital District Transportation Committee (CDTC)

Central Avenue Business Improvement District

City of Albany, New York

City of Schenectady, New York

New York State Department of Transportation

The College of Saint Rose

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1| Executive Summary

The Capital Region is quickly approaching a threshold: by the year 2040 our region is projected

to have over 884,831 residents, an increase of 140,000 residents from 19801. Recent estimates

from the U.S. Census Bureau show that during 2006 to 2010, 79.7% of Capital Region residents

commuted alone in their own vehicles2. As state offices and businesses begin to restack their

offices, parking (both on-street and private) which is already constrained in some places will

become increasingly contentious. At the same time, gas prices have continued to escalate, with

government projections showing continued elevated average gas prices over the next two

years3. Simply put, driving alone is getting more expensive and time-consuming; It’s time for an

alternative which helps residents and workers keep costs down while providing the flexibility

of vehicle ownership. This alternative is Capital CarShare, a comprehensive car sharing

organization designed to meet the transportation needs of Capital Region residents.

How does Car Sharing Work?

Car Sharing is a transportation innovation which gives subscribers the flexibility of having a

vehicle available for short-term trips, while freeing them from the financial and administrative

obligations of automobile ownership. Car sharing is largely self-service: subscribers reserve a

vehicle near their location using an online or telephone-based reservation system, access the

vehicle using their RFID (radio frequency identification)-enabled membership card, and return

it to the car sharing “pod”, or parking space, at the end of their trip. Billing is tracked and

completed automatically by an interface between the vehicle and the car-sharing server, with no

further action required by the member.

Membership Plans

The proposed membership plans are equally simple, with three tiers to allow members to

customize their plans to their driving habits. For members who rarely use a vehicle, the basic

plan allows them to rent a vehicle at a base hourly rate of $9.00, without any monthly

subscription fees. For more extensive users, an intermediate plan of $10 per month, with an

annual discounted rate of $100, grants them a lower hourly rate of $7.00, providing a substantial

discount for those driving more than five hours a month. Lastly, for those members who are

looking to Capital CarShare to replace their current vehicle, the Gold Plan provides the lowest

1 Capital District Regional Planning Commission. (n.d.) Capital District Population Projections. Retrieved

from: http://www.cdrpc.org/Proj-Pop.html 2 U.S. Census Bureau. Table B08101: Means of Transportation to Work by Age. 2006-2010 American

Community Survey 5-year estimates. 3 U.S. Energy Information Administration. (2012). Table 4c: U.S. Regional Motor Gasoline Prices and

Inventories. Retrieved from: http://205.254.135.7/forecasts/steo/tables/?tableNumber=10

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hourly rates in exchange for a monthly membership fee of only $30 or $300 annually. Combined

with a mileage charge of $0.25 per mile, this charge covers all gas, maintenance, and insurance.

Drivers no longer have to worry about the expense of unexpected flat tires, oil changes, or

transmission problems. Capital CarShare frees drivers from these obligations, allowing them to

focus on continuing to make the Capital Region a vibrant, exciting place to work, live, and play.

Where will Capital CarShare operate?

Capital CarShare has identified four initial implementation stages which are outlined in greater

detail in Section 3. This strategy was designed to build a strong membership base over its first

years of operations, which could in turn support future expansion. Initially starting in

Downtown Albany, Capital CarShare will expand out into surrounding neighborhoods over the

first three stages of implementation before continuing to expand to other Capital Region cities.

This plan was based on a demographic analysis of key car sharing indicators as well as potential

membership.

What type of vehicles will Capital CarShare use?

As detailed in Section 4, Capital CarShare will initially start with a fleet of gasoline-powered,

fuel-efficient hatchbacks such as the Toyota Yaris or similar vehicles, as well as a small pickup

truck to allow for a flexibility of uses. However, Capital CarShare will actively pursue funding

sources and partnerships to incorporate hybrid or alternative fuel vehicles into the initial fleet.

As the initial fleet of gasoline-powered vehicles nears replacement, hybrid vehicles will be

introduced to the fleet.

How will Capital CarShare be organized?

Capital CarShare will be organized as a non-profit corporation, to allow the organization to

achieve a broader social purpose without the pressures of maximizing profits for shareholders.

A Board of Directors, made up of key stakeholders and a membership representative, will be

responsible for organizational oversight and ensuring fiscal stability. An Executive Director will

be assisted in their duties by a membership coordinator and several interns in managing daily

operation of the organization. Member volunteers, called Car Captains, will assist in ensuring

that each vehicle in the car sharing fleet is in good condition and ready for use by our members.

Can Capital CarShare be financially self-sustainable?

Simply put, Yes. Initially, Capital CarShare will need to raise approximately $175,000.00

between grants, loans, and contributions (either financial or in-kind) from shareholders and

partners. The first several quarters do have projected losses, largely due to the high initial

infrastructure costs. The first year shows a net profit of approximately $4,848 including start-up

funding. With one-time expenses and funding sources removed, the first year shows a net loss

of approximately $28,911. The second year remains profitable over all, with a net profit of

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approximately $40,865 ($253,454 after one-time expenses and funding sources are removed.) As

with any business, profitability takes time as initial start-up expenses usually overshadow

initial revenue. However our financial outlook, outlined further in Section 9, shows a relatively

strong pattern of growth and associated shift to profitability within two years.

Summary

It’s not a secret: gas prices are rising, parking is becoming increasingly difficult, emissions from

private automobile usage are having a detrimental effect on our environment. This reality has

resulted in Capital Region residents and workers to increasingly look for solutions and

amenities to improve their quality-of-life while reining in expenses. Providing access to a

vehicle for residents, workers, and visitors without the associated cost and time investment of

private vehicle ownership will improve quality-of-life in the Capital Region, serve as an

economic driver in the region, and help facilitate an increase in footsteps in our downtown

cores. For years, the Capital Region has been discussing ways to reduce its environmental

footprint, increase its economic viability, and attract and retain its creative class. Capital

CarShare can help to make progress towards these goals, building upon the Capital Region’s

legacy of being an incredible place to work, live, and play.

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2| Industry Overview

History of Car Sharing

Car sharing has been in existence almost as long as the car itself. The first formal attempt at car

sharing occurred in 1948 in Zurich, Switzerland with a car cooperative known as “Sefage”. The

20th century saw many experiments in car sharing. However, it wasn’t until the 1990s that

modern technology was developed which made car sharing more convenient and feasible.

Today, car sharing organizations are operating in twenty-six countries on five continents, with

over a million members and over thirty-thousand vehicles.4

Car sharing has gained popularity in North America in the last twenty years with no signs of

slowing down. As of July 2011, there were twenty-six U.S car sharing programs with over five-

hundred thousand members sharing ten-thousand vehicles.5 The car sharing market is

generally divided into for profit, non-profit and cooperative business models. Car sharing has

typically been composed of neighborhood based cars that members of a car sharing

organization can access with a special membership card or key. The key to the vehicle and a

card to purchase fuel are located within the car.

Car sharing is poised to continue to grow, especially with the development of new innovations

such as one-way car sharing and peer-to-peer car sharing. One-way car sharing allows vehicles

to be picked up in one location and returned to another within a designated area. This model is

in operation in select cities, both in the United Sates and globally. Peer-to-Peer car sharing,

where a vehicle owner directly shares their vehicle with their peers through a provider, is also

spreading and innovating car sharing.

According to some sources, it is estimated that each car sharing vehicle removes 9 to 13

personal vehicles a total of 90,000 to 130,000 across the country. This reduction in personal

automobile ownership results in a reduction of greenhouse gas emissions, reduced demand for

parking, increased use of public transit and non-motorized transportation and savings for

drivers.6

4 Car sharing, 2012 March 5, Innovative Mobility Research: http://www.innovativemobility.org/car

sharing/index.shtml 5 Car sharing, 2012 March 5, Innovative Mobility Research: http://www.innovativemobility.org/car

sharing/index.shtml 6 Martin, Elliot; and Susan A. Shaheen and Jeffery Lidicker, “Impact of Car sharing on Household Vehicle

Holdings: Results in North America, March 2010

http://www.innovativemobility.org/carsharing/index.shtml




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Car Sharing vs. Private Vehicle Ownership

In order to be successful, car sharing programs need to be cost-effective for both operators and

drivers. As part of the plan development process, an analysis was run on several price points to

measure where the financial break-even point would be, such that private ownership was a

better fiscal option for potential users. To complete this analysis, data was taken from the 2010

American Automobile Association’s cost of driving survey, which was modified to reflect

current average gasoline prices in the Capital Region as of February 29, 2012. For drivers of

small sedans, the financial break-even point was around 3,500 miles annually. It is important to

note that while this appears to be a very small number, car share members reported driving as

much as 79.8% fewer miles than when they previously owned their own automobile, according

to a recent report. Furthermore, surveyed car-sharing members often reported increasing their

use of public transit, contributing to this reduction while demonstrating the synergy possible

between car sharing and transit.7

Table 1: Cost of Vehicle Ownership vs. Car Sharing

Miles Driven Annually 0 1,500 3,000 4,500 6,000

Car Share $100.00 $2,077.27 $4,054.55 $6,031.82 $8,009.09

Private Vehicle $4,381.00 $4,661.95 $4,942.90 $5,223.85 $5,504.80 Assumptions: Fixed vehicle ownership costs (insurance, depreciation, finance charges) of $4,381.00

Variable vehicle ownership charges (gas, maintenance, tires) of $0.1873/mile

Car Share Silver Plan ($100/year, $7.00/hour, $0.25/mile) 5.5 miles driven per hour

Figure 1: Cost of Vehicle Ownership vs. Car Sharing

7 Shaheen, S. Cohen, A., Chung, M. (2009). North American Car sharing : A Ten-Year Retrospective.

Transportation Research Board.

$0.00

$1,000.00

$2,000.00

$3,000.00

$4,000.00

$5,000.00

$6,000.00

$7,000.00

$8,000.00

$9,000.00

0 1,500 3,000 4,500 6,000

An

nu

al C

ost

Annual Mileage

Car Ownership vs. Car Share

Private

Vehicle

Car Sharing

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Car Sharing in the Capital Region In the Capital Region, car sharing is relatively new. Over the last few years car sharing has been

discussed as a transportation option worth exploring, especially among a number of local

colleges. There have been several attempts to attract a large for-profit car sharing organization

to the area. Ultimately these private vendors were not interested in initiating a regional car

sharing program. In 2010, Hertz on Demand located several vehicles internally on the UAlbany

Uptown Campus, as well as one on the Downtown Campus. The vehicles are open to the

public but their availability may be limited when school is not in session. The purpose of

Capital CaShare is to have a regional car sharing program that serves the larger community.

Why Car Sharing is Vital for the Capital Region

Car Sharing Benefits:

Although there are many benefits to incorporating a car sharing program into the regional

transportation system, three major benefits are:

- Reduced environmental impact of commuting

- Reduced demand for parking

- Increased regional economic activity

Reduced Environmental Impact

Car sharing has been shown to decrease greenhouse gas emissions. It is estimated that car

sharing has resulted in a 225,000 ton reduction in greenhouse gas emissions in North America.8

Car sharing in the Capital Region is consistent with recent efforts of New York State and the

Capital Region to become more sustainable, which have been expressed in documents such as

C.D.T.C.’s New Visions Plan and the City of Albany’s Albany 2030 Comprehensive Plan. These

plans have emphasized the importance of transitioning to innovative, less-impactful

transportation options, such as mass transit, alternative fuels, and car sharing.

Reduced Demand for Parking

In many of the region’s dense urban areas, there is limited on-street parking for commuters,

visitors and residents. Car sharing has been shown to eliminate at least nine personal vehicles

for every car sharing vehicle in service, helping to reduce the demand for parking. This will be

vital for the region, especially in Albany where a number of developments are increasing

pressure on the existing parking infrastructure. One such development has been the

reorganization of office space used by New York State, which has resulted in the relocation of

8 Martin, E. W., & Shaheen, S. A. (2011, December). Greenhouse Gas Emission Impacts of Car sharing in

North America. IEEE Transactions of Intelligenet Trasnportation Systems, Vol.12 No.4 , pp. 1074-1086

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between 2,000 and 5,000 workers to downtown Albany offices, including the Empire State

Plaza. 9 Also on the horizon, the City of Albany is implementing a residential parking permit

system for streets within a three-quarter of a mile radius surrounding the Empire State Plaza.10

Car sharing will be a viable option for anyone working, living or visiting the region to increase

mobility without out increasing the need for parking.

Economic Benefit

A car sharing operation stimulates economic activity through the maintenance and operation of

the vehicle fleet, as well as increases the purchasing power of members. Members who car share

in lieu of owning a private vehicle often save significant amounts of money on their

transportation costs, which in turn can be used in local businesses, further growing our

economy. PhillyCarShare estimated that the economic benefit for Philadelphia in the form of

direct expenditures by the organization was $14 million, while $13.2 million in net purchasing

power was saved by members due to cost savings by using car sharing services.11 Relying

heavily on PhillyCarShare’s methodology, Buffalo CarShare determined that their members had

saved over $377,000 in expenses simply by choosing car sharing over private car ownership.

Furthermore, as an organization, Buffalo CarShare directly spent over $440,000 over two years

in the local economy, and paid over $28,000 in sales/car rental taxes from to New York State.

9 (Carleo-Evangelist, 2011) 10 (Carleo-Evangelist, Times Union, 2012) 11Ecoonsult Corporation. (2010). The Economic And Environmental Impact of PhillyCarShare In The

Philadelphia Region. Philadelphia: PhillyCarShare

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3| Membership Characteristics & Location Selection

While the aim for Capital CarShare is to provide mobility solutions to as broad of a segment of

the regional population as possible, it is important to ensure that the where the pods are located

generate enough revenue to sustain and grow the organization. This is particularly crucial for

the initial stages of implementation, when capital is particularly limited. As such, a significant

portion of this project was spent looking at membership characteristics and site selection for the

initial rollout of Capital CarShare.

Target Car sharing Audience

Over the past decade, a significant amount of research has been completed focusing on the

typical demographics of car sharing members. Although it is important not to design programs

which favor one demographic over another, it is important to know which residents are more

likely to use your service for both marketing and financial projection purposes.

In 2005, the Transportation Cooperative Research Program released the report “Car-Sharing:

Where and How It Succeeds.” In this report, the authors identified key characteristics that were

common among the membership of a number of successful car sharing programs, which are

detailed in Table 2.

Table 2: Characteristics of Car-sharing members

Characteristic Typical Car-Sharing Member

Age Mid 30s – Mid 40s

Income Upper middle class

Education Upper levels (College degree(s))

Household size Smaller than average (1-2 persons)

Auto ownership Half own one vehicle

Gender Slightly more attractive to males Source: TCRP Report 108, Exhibit 3-3

Building upon this research, a report presented by the Transportation Research Board in 2007

showed statistically significant correlations between the success of car sharing programs and

most of the same characteristics from table 2. The one exception was education, which their

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research did not show as having a statistically significant relationship12. As such, this indicator

was not utilized in the feasibility index.

Car sharing Feasibility Index

In order to determine how to best empirically measure and identify areas where car sharing

would most likely be successful, it was imperative to develop a data model which incorporated

the aforementioned characteristics of car sharing members, as well as other key indicators.

A review of a number of location selection methodologies was completed early into the

planning process. One city, San Diego, used a methodology which was both comprehensive and

flexible enough to incorporate a wide range of data. This method incorporated a number of key

indicators which were each assigned relative weights. These weightings aligned with the

perceived importance of each indicator to the overall success of a car sharing program. The San

Diego model was used as the base for the model developed for this study, and was modified to

reflect the data available and particular distribution in the Capital Region. The criteria used and

the weightings assigned to each indicator are seen in Table 3.

Proportional data was primarily taken from the 2006-2010 American Community Survey 5-year

estimates, although data dealing with population counts or density was taken from the 2010

Decennial Census. In addition, employment data was obtained from the U.S. Census Bureau

Longitudinal-Employer Household Dynamics Program. All data was collected at the census

tract level, as it was the finest grain data consistently available from all sources.

When this model was applied to the demographic data for the Capital Region, the feasibility

index scores ranged from a low of 19 to a high of 38, out of a possible range of 17 to 51. This

data was then broken into quartiles and mapped using ArcGIS 10, providing a visualization of

the spatial distribution of the feasibility index, as seen in Figure 1. Each quartile was assigned a

successively darker shade, with the darkest shades indicating those census tracts with the

highest proportion of the demographic and physical characteristics that have been identified as

key to a successful car sharing operation, and thus the highest feasibility scores.

12 Celsor, C., Millard-Ball, A. (2006). Where Does Car-Sharing Work? Using GIS to Assess Market

Potential. Transportation Research Board.

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Table 3: Car sharing Feasibility Index - Indicators & Weightings

Indicator Classes Score Indicator

Weight

Density

Population per acre

<= 15 per acre

15 – 30 per acre

> 30 per acre

1

2

3

3

Age

Percentage of population between 25 and 45

years old

<= 30%

30% - 50%

> 50%

1

2

3

2

Income

Percentage of households with annual

income between $30,000 and $75,000

<= 20%

20% - 40%

> 40%

1

2

3

1

Household Size

Percentage of households with 2 or fewer

members

<= 30%

30% - 60%

> 60%

1

2

3

2

Auto Ownership

Percentage of households which do not own

an automobile

<= 20%

20% - 40%

> 40%

1

2

3

3

Alternative Transportation

Percentage of workers who commute using

alternative modes of transportation

(Bicycling, walking, public transit, work at

home)

<= 30%

30% - 60%

> 60%

1

2

3

2

Housing Tenure

Percentage of households which are renter-

occupied

<= 20%

20% - 40%

> 40%

1

2

3

1

Employment

Number of employees per acre

<=30 per acre

30 – 60 per acre

>= 60 per acre

1

2

3

3

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Figure 2: Car sharing Feasibility Index

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Lastly, a filter was placed on this data to only choose census tracts with a density that could best

support car sharing. For the purposes of this final check, the density threshold was set at either

3 households per acre or 50 employees per acre.

Figure 3: Feasibility Index, with density filter applied

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Site Selection

Taking this data a bit further, the top

ranked census tracts were isolated and

ranked amongst themselves, to get a

better idea as to their distribution and

their individual scores. Although it

was originally intended to be limited

to the ten highest-ranked census

tracts, a number of tracts had similar

feasibility index scores. This result

required that the study be broadened

to eleven tracts. The resulting

distribution can be seen in figure 2.

The eleven highest ranked tracts are

located in downtown Albany,

Schenectady, and Troy, locations

which feature dense employment and

residential populations, as well as a

large proportion of the population

which falls within the demographic

profile outlined earlier in this section

One important consideration of site selection is maintaining proximity of pods to one another,

at least for the initial roll-out. The initial vehicles should be located in areas which will

guarantee high utilization and are located within walking distance to other pods to allow

members to easily access multiple vehicles. The purpose for this clustering technique is to

prevent the negative experience and resulting reputational impact that could occur if the one

vehicle in an area was taken at the same time that another member needed it. Although this is

certainly unavoidable in some instances, if it occurs too often it could create the perception that

the car sharing program is a “hassle” because the vehicles are never there when they are

needed.

Figure 4: Highest Ranked Census Tracts

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Membership projections

Membership projections were developed based on U.S. Census Bureau population figures for

residents 25 and older, taken from the 2010 Decennial Census. Commercial figures were taken

from the Longitudinal-Employer Household Dynamics Program and reduced by three-quarters,

reflecting the reality that a significant portion of the workday population will not be inclined to

join this service. Furthermore, these figures were multiplied by a range of penetration rates,

allowing for a full picture of potential membership numbers depending on the success of the

organization’s outreach and marketing efforts.

Figure 4 : Initial Implementation Stages

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Multi-stage Implementation

Stage 1: Center Square, Hudson/Park, Downtown, University Heights (Census Tracts 22, 11, 21)

Key Demographics

o Residents over 25: 4,415.

o Employees: 49,063.

o Households with 0 or 1 vehicle: 79.7%.

o Over three-quarters of households have 2 or fewer members.

High concentration of dense residential population, employment base, and high-rental

tenure make this an ideal core area to start within. Major employment centers are

located throughout the tracts, including State Offices, large office buildings, and several

institutions such as Albany Medical Center. Parking can be contentious in this area,

which may be improved through a wide-spread adoption of car sharing.

Potential Membership:

o Residents Alone: 1% penetration rate: 44 members; 3%: 132 members.

o Residents & Employees: 1%: 166 members; 3%: 500 members.

Timeframe: Year 1, first through third Quarter.

Stage 2: Washington Park, Pine Hills, West Hill neighborhoods (Census Tracts 8, 14, 15, 6, 5.02)

Key Demographics

o Residents over 25: 6,529.

o Employees: 6,160.

o Households with 0 or 1 vehicle: 69.8%

Relatively dense residential and key employment centers provide a strong potential

membership base. Adjacency to prior tracts allows network to grow organically and

contiguously. Fairly constrained parking situation in these neighborhoods would

improve with car sharing adoption, but may spark objections to the dedication of scarce

parking to car sharing pods.




Timeframe: Year 1, third quarter through Year 2, second quarter.

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Stage 3A: Arbor Hill, West Hill, Beverwyck neighborhoods(Census Tracts 2, 7, 5.01)

Key Demographics

o Residents over 25: 8,918

o Employees: 4,419


Good combination of residential and commercial base, as well as a high percentage of

households without vehicles. Adjacency to existing network allows the organization to

continue to grow organically. Recent planning focus on Arbor Hill and Sheridan Hollow

may allow easier incorporation into the neighborhood as part of developing plans.




Timeframe: Year 2, third quarter through Year 3, fourth quarter.

Stage 3B: Delaware Avenue, Pastures, Mansion, South End neighborhoods (Census Tracts

16, 20, 23, 25)

Key Demographics

o Residents over 25: 14,967

o Employees: 2,485


Primarily a residential neighborhood, although there is a growing commercial base

present as well. High percentage of households without vehicles. Adjacency to existing

network allows the organization to continue to grow organically. Recent mass transit

route reorganization has increased transit access to these neighborhoods, increasing the

number of potential members.




Timeframe: Year 2, third quarter through Year 3, fourth quarter.

Stage 4: Downtown Troy or Downtown Schenectady

By this point in its development, Capital CarShare will have built a fairly strong brand

identity and presence within Albany, which will help to fund expansion to a second city. As

Stage 3 is slated to occur during Year 3, this expansion will likely not occur until the fourth

or fifth year of business. As such, it would be premature to select a municipality at this

point. Factors that should go into this decision include a demographic analysis, as well as

municipal and institutional support.

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Car Sharing Pod Location Criteria

Within each implementation area, choosing each car sharing vehicle location (also known as a

pod) will require careful study. Although there will always be extenuating circumstances, it is

important that car sharing pods are situated in locations that meet certain criteria. This criteria

includes:

- Land Use: Pods should be located near mixed land-use whenever possible. This will

increase the utility of the vehicle as residents, businesses and their patrons, and workers

have increased access to the vehicle for their transit needs.

- Density: In order for the pod to be financially successful, it is important that the the area

surrounding the pod (roughly a half mile radius) has a high residential and employment

density. Generally speaking, 2,500 residents within half a mile of the vehicle would

provide a solid base of potential members. This figure could be less if there are sufficient

potential members from nearby businesses.

- Accessibility: Pods should be easily recognizable and accessible to residents and visitors

alike. The ideal location will be near a centrally located primary road for the tract.

Although this may not be a high-traffic thoroughfare, it is important that this road have

steady traffic patterns, to both increase visibility and accessibility.

- Parking: Pods need to have a dedicated parking spot, ideally at the end of block or

street. This will increase visibility and allow members to locate the vehicles easily, even

in an unfamiliar neighborhood. Additionally highly visible signage/street markings will

be very important for identifying and advertising car sharing pods. As such, it is

important that selected locations allow for appropriate signage and/or street markings.

- Proximity to other pods: When possible, it is preferable for pods to be within walking

distance (half mile) of another pod. This allows members the option of using a different

pod if the vehicle they usually use is already booked.

Other Considerations

It is important to note that site selection will not be solely driven by the aforementioned data

model used to create the feasibility index. Occasionally, there will be other influences which

will help determine where the next phase of fleet expansion should take place. While it would

be difficult to identify every potential influence, pod sponsorship and government grants are

two examples which could help to expand Capital CarShare to new areas.

Pod Sponsorship

Many of the car sharing organizations that were studied had incorporated or solicited private

sponsorship of car-sharing pods. This provides the sponsor with a price-competitive alternative

to private fleet and parking management while providing the car sharing organization with

financial support for the start-up costs of the pod, as well as a cache of potential members.

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Although each potential partnership would need to be carefully analyzed to ensure that the pod

is otherwise feasible, this option can be a great way to expand the car sharing network with

much lower outlay of capital.

Potential partner organizations include:

- State, County, and Municipal Governments

- Universities / Colleges (Staff and Students)

- Hospitals

- Shopping Centers/Commercial Plazas

- Residential Complexes

- Hotels

Capital CarShare will actively work to solicit and

build these partnerships to help accelerate the

expansion of the network while raising the profile

and market penetration of car sharing.

Government Grants

Another potential source of funding which could influence the expansion of the car sharing

network is government grants. State and Federal agencies often provide financial grants to

incentivize private entities to tackle pressing social and economic issues. As part of this process,

the consultant team has been working to identify potential funding streams, including

government grants. Much like with the pod sponsorship, a grant award will allow Capital Car

Share to expand into areas which may not have been feasible until later in the implementation

timeline. These grants would reduce the startup and maintenance capital required to operate

the pod. In addition, some government grants may be able to be used to offer subsidized plans

for targeted populations. Some potential topics where grant funding may be available include

assisting with mobility, mitigating food deserts, and increasing environmental sustainability in

the region.

Figure 5: A Marriot Courtyard-branded Zip Car

Pod in Dallas, TX.

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4| Fleet Infrastructure

Ownership Method

One of the first decisions that need to be made in terms of fleet management is whether it is

better to purchase or lease the car sharing vehicles. Leasing vehicles requires a much smaller

initial capital outlay than purchasing, but would involve a monthly lease payment per vehicle.

Leased vehicles generally have penalties for exceeding annual mileage limits, which could

prove to be an unplanned expense. Purchasing vehicles requires either a large initial investment

or securing financing from either a dealer or private institution. However, purchased vehicles

are not subject to mileage surcharges and provide the organization with complete flexibility to

customize them as needed, including adding car sharing equipment and vehicle graphics. The

latter point can be negotiated into the lease contract, as has been done by some organizations.

For the car sharing organizations reviewed as part of this study, both ownership models have

been utilized. However, for the purposes of Capital CarShare the preferred method would be to

purchase the fleet outright to allow for maximum flexibility in terms of fleet management and

customization.

Vehicles will be kept in service for approximately three to five years, or before the vehicle

depreciates significantly in resale value. This timeframe will be established based on the model

chosen and the Kelly Blue Book resale value for that model year.

Loanation

Once the organization is past the initial implementation stage it will explore allowing people to

share their car with the entire car sharing membership. The model for this program is currently

in use with eGo, a car sharing organization in Colorado. The criteria for vehicles are:

Automatic transmission

Less than five years old

Less than 75,000 miles

Body and interior in good condition

Reliable make and model

Fuel-efficient sedan, hatchback, AWD vehicle, minivan, pick-up truck

Must own vehicle outright (no liens on title)

Must be willing to enter into a two year loan agreement.

The car is outfitted with the car sharing organization’s hardware and it is put into the fleet

similar to that of other vehicles. The vehicle will be placed strategically to expand the

organization’s fleet but will also take into consideration the location of vehicle owner.

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Those who share their car receive:

Use of their car and entire car share fleet with an annual usage credit based on the Kelly

Blue Book value of their vehicle.

The car share organization will take responsibility of the insurance, maintenance and gas

for the vehicle.

The owner of the vehicle can take their car back at any time but must give the

organization a minimum thirty day notice.

Fuel Type

There are three major fuel sources which are commercially available that need to be considered

during the vehicle selection. Gasoline is currently the default choice for private vehicles sold in

the United States, making up approximately 96% of vehicles sold in February 2012.

Comparatively, hybrid vehicles made up 3.16%, electric vehicles made up 0.15%, and clean

diesel made up 0.79% of total passenger vehicle sales in the same month13.

Many car sharing organizations utilize either gasoline or hybrid vehicles in their fleets. These

options each have their benefits and drawbacks which need to be carefully weighed. Gasoline

vehicles tend to be cheaper to purchase and maintain, but are subject to the increasingly

expensive and unpredictable gasoline prices, which in turn can rapidly increase operating

expenses. In addition, the burning of fossil fuels has been linked to a number of environmental

issues.

Hybrid vehicles use less gasoline, which reduces fuel expenses and emissions. However, hybrid

vehicles can be more expensive than their gasoline counterparts. Electric, Clean Diesel, and

Compressed Natural Gas (CNG) vehicles are also generally more expensive than gasoline

vehicles, and also require specialized refueling stations or equipment. These options would

have a lower environmental impact and would be more insulated from rising gasoline prices.

However, ensuring that there is sufficient recharging or refueling infrastructure in the

implementation area could pose a logistical problem.

That said, there has been an increase in the rate of installation of alternative refueling or

recharging infrastructure throughout the Capital Region over the past several years.

Furthermore, alternative fuel vehicles may make the organization more competitive when

applying for government grant programs and private partnerships. One valuable source for

information about alternative fuel sources, infrastructure, and funding sources can be found at

the U.S. Department of Energy’s Alternative Fuels & Advanced Vehicles Data Center Website:

13 February 2012 Dashboard. HyridCars.com. Retrieved from: http://www.hybridcars.com/news/february-

2012-dashboard-42085.html

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http://www.afdc.energy.gov/afdc/. Incorporating alternative fuel vehicles into the Capital Car

Share Fleet will be actively pursued by Capital CarShare to help lower the Capital Region’s

carbon footprint.

Initially, Capital CarShare will likely start with a gasoline powered fleet which will be replaced

over time with hybrid vehicles. This choice will lower the initial vehicle expenses, which is

crucial during the initial start-up stages. However, Capital CarShare will actively pursue

funding sources and partnerships to incorporate alternative fuel vehicles as a significant portion

of its fleet.

Fleet Model Recommendations

When selecting a vehicle for Capital CarShare’s fleet, several factors had to be considered, such

as purchase price, gas mileage, maintenance costs, and flexibility. In order to keep maintenance

and on-board equipment installation costs as low as possible, it was decided to initially start

with one model of vehicle, with the exception of one truck for flexibility. A subcompact

hatchback was chosen for a vehicle class, as they are relatively compact and fuel-efficient, but

offer a greater amount of cargo room for members. In addition, the purchase price was only

slightly higher than their sedan counterparts. The Toyota Yaris provides the best combination

of fuel efficiency, purchase price, and maintenance costs in this vehicle class. This report

therefore has used the Toyota Yaris as the suggested standard fleet vehicle for budgetary and

planning purposes. Ultimately, the decision on a specific model will depend largely on the

availability of dealer financing and a negotiated fleet purchase price, as well as grant

opportunities and private partnerships

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Table 4: Potential Car-sharing Vehicle Models

Hatchbacks

Make Model Transmission Fuel MPG

(city/hwy)

Price Maintenance

(5 years)

Chevrolet Sonic 2LS Hatchback Automatic Gas 25/35 $16,634 N/A

Ford Fiesta Hatchback Automatic Gas 29/39 $16,809 $1,858

Honda Fit Hatchback Automatic Gas 28/35 $15,441 $1,862

Nissan Versa S Automatic Gas 24/32 $16,460 $2,271

Toyota Yaris Automatic Gas 30/35 $15,041 $1,887

Sedans


(city/hwy)

Price Maintenance

(5 years)

Chevrolet Sonic 2LS Sedan Automatic Gas 25/35 $15,730 N/A

Ford Focus Automatic Gas 26/36 $16,558 $ 2,605

Honda Civic Automatic Gas 28/39 $16,499 $ 1,882

Nissan Versa S Sedan Automatic Gas 30/38 $13,900 $2,271

Toyota Corolla Automatic Gas 27/34 $16,004 $ 2,109

Electric/Alternative Fuels

Make Model Transmission Fuel MPG (city/hwy) Price Maintenance

(5 Years)

Chevrolet Volt N/A Gas/Electric 36 miles/charge,

35/40 mpg

$39,995 $1,680

Ford Fusion Automatic Gas/Electric 41/36 mpg $29,570 $2,370

Honda Civic Hybrid Variable Gas/Electric 44/44 mpg $24,820 $1,72

Nissan Leaf N/A Electric 100 miles/charge $37,250 $1,786

Toyota Prius Automatic Gas/ Electric 51/48 $23,725 $1,655

Crossovers/Vans/Trucks


(city/hwy)

Price Maintenance

(5 Years)

Chevrolet Equinox Crossover Automatic Gas 22/32 $24,340 $ 2,549

Ford F150 XL Automatic Gas 17/23 $22,649 N/A

Honda Odyssey (Minivan) Automatic Gas 18/27 $26,643 $2,024

Nissan Quest Van Automatic Gas 19/24 $28,575 $2,609

Toyota Sienna (Minivan) Automatic Gas 19/24 $24,261 $2,290

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5| Technology & Services

While early car sharing initiatives often relied on the honor-system or relatively low-tech

methods for facilitating reservation scheduling, fleet management, and member accounts,

modern car sharing operations generally rely on a two-tiered system of technology to keep

operations flowing smoothly: on board (in-car) equipment, and server-side equipment. For each

category, there are a number of service providers, each with their own product line and cost

structure. Contact information for each provider contacted can be located in the Appendix.

On Board Equipment

The on-board equipment is responsible for controlling and providing access to the vehicle,

tracking and communicating mileage driven and vehicle location, as well as providing fleet

security and reservation management services with some models.

Access to the vehicle is gained by the member placing their membership card, which contains

an RFID chip, against the driver’s side of the windshield. RFID is a radio frequency

identification used to transfer data. The on-board equipment verifies that the member has a

current reservation and unlocks the vehicle. At the end of the reservation, the member simply

returns the vehicle key to the compartment in the glove box and places their membership card

back up to the RFID reader, which then locks the vehicle.

On-board equipment is available through a number of vendors, which offer options to either

purchase or lease the equipment. Generally speaking, purchase prices range between $1000 and

$1400, while lease prices are generally $50-70 per month. Installation procedures vary greatly by

the equipment, but take approximately two hours per vehicle for an experienced mechanic or

technician.

Server-Side Equipment

Modern car sharing operations often manage dozens of vehicles, used by hundreds or

thousands of members who subscribe to one of a number of different membership plans.

Without a well-developed technology solution, running such an organization would be

tremendously difficult. However, a number of technology vendors have developed systems

which take care of much of the “heavy lifting,” allowing car sharing operators to tailor their

service to what best meets the diverse needs of their clientele. Although each provider has

subtle differences in the interface and included features of their systems, all of the systems

reviewed offered:

Reservations – Internet & Telephone

Vehicle Tracking and immobilization

Membership management – Billing, Tier management & partnership discounts

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Generally speaking, these systems are hosted by the vendor, reducing the technical expertise

required by the car sharing staff. In terms of cost, most of the systems that were studied had a

tiered pricing approach for the server-side equipment, assessing a monthly fee per networked

vehicle, generally between $38-60. Initial set up costs vary by provider, but generally cost

approximately $2000.

Services

Insurance

An initial quote was received from William P. Curtis, a principal at Porter & Curtis, LLC, a

consultative commercial insurance broker and risk management services provider. Porter &

Curtis is the insurance broker for other car sharing organizations such as Buffalo Car Share.

William Curtis presented on insurance for car sharing organizations at the fall 2011 Upstate

Transportation Forum in Ithaca, New York. Although premiums depend on the vehicle type,

limits, deductibles and ultimately loss experience, Mr. Curtis estimated a monthly expense of

between $150 and $200 per vehicle for budget purposes. This includes $1,000,000 of liability

coverage, statutory minimum limits for uninsured/underinsured motorists & PIP (no fault).

There would be a $500 deductible for comprehensive and collision. Those 18- 20 years of age

need to demonstrate that they are covered by another car insurance policy.

DMV/Credit Check

In order to protect the organization’s infrastructure, as well as to comply with insurance

requirements, Capital CarShare will be required to obtain a DMV record for each subscriber.

These records searches generally run between $10.00 and $15.00, depending on the vendor.

Merchant Services

In order to accept and process credit cards for reservations, Capital CarShare will need to

establish a contract with a merchant services provider. These services can either be obtained

through third-party vendors or often through the banking services provide. Generally, a

monthly fee is assessed as well as a percentage-based transaction fee, ranging from 1.5-5%

depending on the terms of the contract and usage patterns. For the purposes of the financial

projections, we have assumed $150 in setup costs, $25 a month in maintenance fees, and a 3.00%

transaction fee.

Office Rent & Utilities

As with any business, office space will be necessary to facilitate the organization’s operations. It

is suggested that Capital CarShare open a storefront office space, preferably in an area with

high pedestrian traffic. Although cheaper space may be available through a shared-space

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arrangement with another organization, many car sharing organizations (such as Buffalo) have

found success in outreach efforts simply by having a highly-visible storefront office.

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6| Price Structure

After site selection, development of a membership structure is one of the most important

aspects of creating a successful car sharing program. A successful membership plan will

provide users with a range of options to best meet their transit needs, while providing the

organization with a strong revenue base to further maintain and develop its network.

Additionally, it is vital that the membership plan remain competitive with other means of

transportation. To achieve this balance, a competitive analysis was completed of several car

sharing programs, which in turn was used in conjunction with local market conditions to

develop a proposed Capital CarShare membership plan.

Competitive Analysis

To start off this process, a survey was completed of other car sharing programs of various sizes.

To best capture a range of programs that would provide the most relevant information,

programs were selected from both regionally proximate as well as more distant car sharing

operators. In addition, a more established program was included to provide context in terms of

scalability as Capital CarShare grows.

A total of twelve programs were analyzed as part of this process, from small single car

operators to a major regional operator with hundreds of vehicles. Ultimately, six programs were

chosen for a more in-depth analysis, given their proximity to the Capital Region, as well as

unique features of their programs. The six programs that were analyzed were Ithaca Car Share

(Ithaca, New York), CuseCar (Syracuse, New York), Buffalo Car Share (Buffalo, New York), eGo

CarShare (Boulder, Colorado), CarShare Vermont (Burlington, Vermont), and I-Go Car Sharing

(Chicago, Illinois).

Of these programs, all featured a multi-tiered approach to membership. This approach allows

users to choose the plan which best matches their anticipated level of usage, while encouraging

and rewarding users who use the service more regularly. This financial incentive is very

important, as each vehicle in the fleet incurs a number of fixed costs, regardless of how often

they are used. The higher the utilization of each vehicle, the lower the fixed cost per mile and

the greater the revenue stream. These cost savings can in turn be used to expand the car sharing

network.

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Table 5: Car sharing Membership Plan Comparison

Operator Tiers Membership Fee Hourly Mileage

Ithaca Car Share Just In Case $50.00/year $7.95 $0.20

It's My Car $200.00/year $4.95 $0.20

CuseCar Student $20.00/year $7.95 $0.20

Sponsor $20.00/year $5.95 $0.20

Out-N-About $60.00/year $7.95 $0.20

Commuter $200/year or

$18/month

$5.95 $0.20,

60 miles incl.

Buffalo Car Share Buffalo Settler $50/year or

$5/month

$8.00 $0.20

Buffalo Roamer $20/month

(1 driver)

$25/month

(2 drivers)

$5.00 $0.20

eGo CarShare Peace of Mind $0 $4.50–6.50 $0.30

Free Wheelin’ $10/month $2.50-4.00 $0.30

I-Go Car Sharing Go Standard $0.00 $6.75 $0.40

Go Standard Plus $0.00 $8.50 $0.40,

150 miles incl.

Go Budget $15.00/month

3 hours incl.

$8.50

$0.40,

150 miles incl.

Go Anytime $30.00/month $7.00 $0.40,

150 miles incl.

CarShare Vermont Share-a-Little $5/month

$50/year

$6.95 $0.25

Share-a-Lot $15/month

$150/year

$4.95 $0.25

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Developing Capital CarShare Membership Plans

When developing the structure for Capital CarShare, two key objectives were established: a)

Create a simple, easy to communicate structure, and b) ensure the structure is flexible,

competitive, and profitable. With these objectives in mind, the following membership plan was

created, providing users with a range of options to best fit their transit needs.

Table 6: Capital CarShare Membership Plan Tiers

Tier Target Audience Monthly Fee Usage Fee

Basic Members who are not sure of their

projected usage, or only plan on

using Capital CarShare occasionally.

$0 Hourly Rates starting

at $9.00; $0.25/mile

Silver Members who plan to use Capital

CarShare at least weekly.

(at least 5 hours per month)

$10

Or $100/year

Hourly Rates starting

at $7.00; $0.25/mile

Gold Members who plan to use Capital

CarShare on a regular basis.

(at least 10 hours per month)

$30

Or $300/year

Hourly Rates starting

at $5.00; $0.25/mile.

Application

Fee

Covers requesting and processing

the DMV records check

$30; Waived for Gold Annual

Subscriptions

This multi-tiered system provides plans which fit all usage patterns, while rewarding those who

more actively use their memberships and/or are willing to commit to an annual membership.

The member’s break-even point for the silver level is five hours monthly, while for the gold

membership it is seven hours monthly. This encourages greater use on the part of the member

while helping to increase vehicle usage.

Figure 5 revisits the chart shown earlier in the report, but expands to show all three tiers of

service. With this chart, it is easy to see how members who travel longer distances or use the

service more frequently can save on their travel expenses by opting for a higher membership

tier. Furthermore, the break-even point against the cost of private ownership becomes even

greater, allowing a wider segment of travelers to benefit from car-sharing while maintaining a

profitable revenue flow for the organization.

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Business Membership

In addition to the individual membership options, Capital CarShare will offer local businesses

the option of participating in this new transportation option through the Business Silver plan.

This plan is structured similar to the Silver Tier plan, with a $100 annual membership fee and a

$7.00 hourly charge. However, business owners will have the option of adding drivers for a

reduced rate of $20 each. Annual membership subscribers will have their first driver application

fee waived. The Business Silver plan will give business owners greater control over their

transportation expenditures, while eliminating the overhead that comes with owning a business

vehicle or fleet.

Penalties & Fees

As with any other service, occasionally there will be violations of the membership agreement.

These violations may range from the mundane, such as returning a car late or leaving the

windows open, to the more serious, such as smoking in the vehicle or damaging the vehicle. In

order to both discourage such behavior, as well as accommodate for the financial burden taken

on by the organization to remedy these actions, a penalty fee structure has been established.

Generally speaking these fees will run between $15 and $35 per infraction. These fees will be

used to help maintain these vehicles, as well as cover expenses such as providing alternate

transportation for affected members.

For accidents or vehicle damage which results in an insurance claim, members will be

responsible for paying the $500 insurance deductible incurred by the organization. This would

be similar if the incident occurred in their private vehicle. By holding the member responsible

for reimbursement of the deductible, the impact on the organization and larger membership

base is reduced.

$0.00

$2,000.00

$4,000.00

$6,000.00

$8,000.00

$10,000.00

$12,000.00

0 1,500 3,000 4,500 6,000

An

nu

al C

ost

Annual Mileage

Car Ownership vs. Car Share

Private Vehicle

Base Plan

Silver Level

Gold Level

Figure 6: Capital CarShare Membership Tiers and Private Ownership

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Table 7: Abbreviated Schedule of Fees

Violation Description Fee

Vehicle not left in

“Ready” Condition

Vehicle is left with less than ¼ tank

of gas, parked in an incorrect

location, and/or dirty or with litter.

$30

Late Return of Vehicle Car is returned after the

reservation time has finished.

Reported: $4.25/15 minutes

Unreported: $7.50/15 minutes

Smoking or Pets (without

crate) in Car

Occupant either smoked or had

animals in the vehicle.

$50 or reasonable cleaning

costs, whichever is greater.

Vehicle Damaged

(minor)

Minor damage to the vehicle, with

repair costs less than $500.

$30 + reasonable repair costs.

(No charge if caused by

normal wear and tear.)

Vehicle Damaged (major) Major damage to the vehicle, with

repair costs exceeding $50.0.

$30 + $500 deductible

Lost Gas Card Fleet gas card is lost/stolen $15

Lost Vehicle Key Vehicle key is lost or irreparably

damaged.

$150

Replacement

Membership Card

Membership RFID Card is

damaged or lost,

One complimentary

replacement per year.

$10 each afterwards.

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7| Organizational Structure

For-Profit vs. Non-Profit

Capital CarShare will be formed as a nonprofit corporation under the laws of New York State.

While this does entail some additional paperwork than forming as a for-profit corporation, this

type of legal entity will better position the organization to raise capital through grants and

donations. Furthermore, forming as a nonprofit entity will allow Capital CarShare to pursue

expanding car sharing and related services to areas which might prove more challenging to

serve profitably. Capital CarShare will purposefully set a double bottom line for itself,

measuring success not simply on profitability but also on improving quality of life of the

neighborhoods in which it operates while reducing the environmental impact of private car

ownership.

Organizational Oversight

The Board of Directors for Capital CarShare will be made up of representatives from key groups

representing stakeholders, local and regional transit organizations, as well as the members

themselves. Directors are responsible for overseeing and setting the overall strategy of the

organization, as well as providing guidance and direction for the executive director and staff. A

mix of inside and outside directorships was utilized to provide the board with a balance of

specialized experience and independent oversight. The tentative board composition is as such:

- Executive Director

- Local Government Representative

- Regional Transportation Agency (CDTA/CDTC) Representative

- Business Improvement District Representative

- Educational Institution Representative

- Member Representative

Staffing

Initially, Capital CarShare should be staffed with a full-time executive director, a part-time

membership coordinator, and two part-time interns. These staff members will be responsible for

the day-to-day operations of the business, as well as raising awareness of Capital CarShare and

car sharing in general in the community.

Executive Director

This position will be responsible for all aspects of the day-to-day operation of the program,

including member services, community outreach, car-sharing advocacy, grant-writing and

administration. It is critical that the individual chosen for this position be entrepreneurial and a

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self-starter. In a large part, the success of Capital CarShare will rely on the dedication and skills

of the executive director. This position will report to the Board of Directors.

Membership Coordinator

This position is responsible for all aspects of the member experience, including community

outreach, billing and account support, as well as system and infrastructure management. The

Membership Coordinator is responsible for overseeing the Car Captain program, as well as

resolving any disputes or situations that may arise between members or concerns members

have about the vehicles. Initially, this position will be a part-time position; however, it should

become full-time within twelve months. This position reports to the Executive Director.

Interns

Interns working for Capital CarShare during its early stages will have an invaluable

opportunity to assist in the building of a new car sharing organization, providing learning

opportunities which will well-position these individuals for their future careers. Ideally, one

intern each will be assigned to the Executive Director and the Membership Coordinator to assist

in projects related to their core responsibilities. In addition, each intern will be responsible for

providing front-line member support for reservation inquiries, basic problem resolution and

membership questions. Compensation will not be available for these positions; however

CarShare interns will be eligible for course credit at participating institutions and will receive a

complimentary Capital CarShare membership which will extend for one year after the

completion of their internship.

Car Captains

An important member of the Capital CarShare team will be the Car Captain. These volunteers

will be responsible for checking in on an assigned vehicle on a weekly basis to make sure that

the organization’s service standards are being upheld. Car Captains will ensure that the cars are

clean, visually ensure that they are not damaged or missing any components, and alert Capital

CarShare staff if the vehicle needs further attention. In addition, Car Captains will be

responsible for shoveling out their assigned vehicle within twelve hours of the end of a

snowstorm. For their service and support, Car Captains will be granted a complimentary Gold

Tier membership for as long as they serve in their capacity. The Car Captain program, used in

many car sharing organizations around the country, is a great way for supporters to get

involved in the Capital CarShare organization and provides invaluable support for car sharing

in the Capital Region.

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8| Implementation & Future Growth

Growth Patterns

Although Capital CarShare anticipates an aggressive pattern of membership growth, for our

financial projection we have worked with a conservative growth number of fifteen members per

month on average, adjusted for seasonal fluctuations and decreasing interest between

implementation rollouts. Furthermore, as a result of a planned outreach campaign, we have

anticipated an initial membership base of fifty members. These figures will lead to an

anticipated membership base of 340 members by the end of the second year in operation. This

level of membership will support up to fifteen cars, using a benchmark ratio of twenty-two to

twenty-five members to one car.

Implementation Timeframe

As mentioned in the discussion of implementation stages, the planned initial roll-out of Capital

CarShare is scheduled to take place over a period of three years, with continued expansion

afterwards. It is estimated that the first three to six months will be spent by organizers locating

and hiring an executive director, completing and filing the organizing documents for

incorporation and 501(3)c status, identifying and soliciting funding sources, and sourcing and

purchasing the required infrastructure. Although some of these tasks will be on-going, such as

soliciting grants and procuring infrastructure, the aforementioned tasks need to be completed

prior to the start of operations.

The first implementation stage, centered around Downtown Albany, Center Square, and

University Heights, will start as soon as feasibly possible and will initially wrap up

approximately in the third quarter of the first year. It will be vital that care is taken to identify

and correct any issues as soon as possible during this stage, as it will both serve as a model for

future implementation and attract substantial public and media attention. Initially, this stage

could involve the installation of anywhere between four and eight cars throughout the area,

depending on market penetration.

It is expected that implementation stage 2, which involves expanding car sharing pods into

Albany’s Park South and Pine Hills neighborhoods, will begin to start around the fourth quarter

of the first year and continue into the third quarter of the second year. Ideally, new pods will be

added gradually, expanding the network radially out through the targeted area. Depending on

adoption and market penetration, there could be anywhere from two to six cars installed during

this stage.

The third stage of implementation, which would bring car sharing into the Arbor Hill, South

End, and Delaware Avenue neighborhoods, would tentatively take place through the third

Ch

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year. This is a large expanse of territory and could result in anywhere from four to eight cars

installed in this area.

Figure 7: Implementation Timetable

Ongoing tasks will include regular review of market adoption and vehicle usage to identify

areas which may need additional capacity, as well as future expansion locations. As part of this

task, regular membership surveys or panels should be conducted to get a picture of how the

membership perceives their car sharing experience. Additionally, there will need to be an

ongoing outreach effort to community members, groups, and organizations to increase

awareness and adoption, as well as to identify and negotiate partnerships with key stakeholders

to increase the network coverage at a lower capital expense.

Ch

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9| Financial Outlook

In order to develop a comprehensive set of financial projections, the consultant team

incorporated information gathered from service providers and other car sharing organizations,

as well as independent analysis specific to the Capital Region. As with any set of projections,

certain assumptions were made, specifically in regards to membership projections and funding

sources. While we feel these numbers are both conservative in nature and realistic in scope,

these figures should be viewed as acquisition goals; any change in these numbers could require

either extending the time frame of the implementation plan or finding alternative funding

sources.

For the first year of operations, our projections show revenue of $331,957.00, of which

$156,957.00 are revenue from operations and $175,000.00 are proceeds from start-up funding

sources. The largest revenue stream is from hourly usage charges, accounting for $99,400.50.

For this same period, our projections show an expense total of $328,795.94. Vehicle purchases

made up the largest expense at $121,278.00, followed by staff wages at $74,950.00. These figures

result in a projected net profit for the first year of $4,848.56. With one-time revenue and expense

categories omitted, there is a net operating loss of $28,911.20 for the first year.

During the second year, there is projected revenue of $399,607.00, primarily sourced from car

sharing operations. As with the first year the largest projected revenue stream is hourly usage

charges, which contributes $244,989.00 in revenue. During this same period, there is a projected

$358,741.90 in expenses. With one-time vehicle acquisition expenses omitted, annual expenses

are projected at $253,454.90, a 18.79% increase in variable expenses. This increase is largely

attributed to increased fuel and maintenance costs, as well as the transition of the membership

coordinator from part time to full time status.

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Table 8: Capital CarShare Financial Projections C

ate

gory

Ass

um

pti

on

Fre

qu

en

cy/U

nit

Y1Q

1Y

1Q2

Y1Q

3Y

1Q4

Y1

Y2Q

1Y

2Q2

Y2Q

3Y

2Q4

Y2

Tota

ls

Re

ceip

ts

R

egi

stra

tio

n F

ee

s$3

0.00

per

use

r (o

ne-

tim

e)$1

,500

.00

$1,3

50.0

0$1

,500

.00

$1,3

50.0

0$5

,700

.00

$900

.00

$1,3

50.0

0$1

,350

.00

$900

.00

$4,5

00.0

0$1

0,20

0.00

M

em

be

rsh

ip D

ue

s$5

,070

.00

$8,3

40.0

0$1

1,85

0.00

$16,

440.

00$4

1,70

0.00

$19,

140.

00$2

3,10

0.00

$28,

020.

00$2

9,94

0.00

$100

,200

.00

$141

,900

.00

Sil

ver:

An

nu

al$1

00.0

0p

er h

ou

seh

old

$900

.00

$1,5

00.0

0$2

,100

.00

$3,0

00.0

0$7

,500

.00

$3,9

00.0

0$5

,100

.00

$6,3

00.0

0$7

,500

.00

$22,

800.

00$3

0,30

0.00

Sil

ver:

Mo

nth

ly$1

0.00

per

ho

use

ho

ld$3

90.0

0$7

20.0

0$1

,080

.00

$1,4

40.0

0$3

,630

.00

$1,6

50.0

0$1

,980

.00

$2,3

40.0

0$2

,550

.00

$8,5

20.0

0$1

2,15

0.00

Go

ld: A

nn

ual

$300

.00

per

ho

use

ho

ld$2

,700

.00

$4,5

00.0

0$6

,300

.00

$9,0

00.0

0$2

2,50

0.00

$9,9

00.0

0$1

1,70

0.00

$14,

400.

00$1

5,30

0.00

$51,

300.

00$7

3,80

0.00

Go

ld: M

on

thly

$30.

00p

er h

ou

seh

old

$720

.00

$1,2

60.0

0$1

,980

.00

$2,6

10.0

0$6

,570

.00

$2,9

70.0

0$3

,600

.00

$4,2

30.0

0$4

,590

.00

$15,

390.

00$2

1,96

0.00

Bu

sin

ess

Sil

ver:

An

nu

al$1

00.0

0p

er b

usi

nes

s$3

00.0

0$3

00.0

0$3

00.0

0$3

00.0

0$1

,200

.00

$600

.00

$600

.00

$600

.00

$1,8

00.0

0$3

,000

.00

Bu

sin

ess

Sil

ver:

Mo

nth

ly$1

0.00

per

bu

sin

ess

$60.

00$6

0.00

$90.

00$9

0.00

$300

.00

$120

.00

$120

.00

$150

.00

$390

.00

$690

.00

H

ou

rly

Usa

ge$5

,827

.50

$20,

880.

00$3

1,42

8.00

$41,

265.

00$9

9,40

0.50

$47,

646.

00$5

7,09

6.00

$67,

185.

00$7

3,06

2.00

$244

,989

.00

$344

,389

.50

Bas

ic$9

.00

per

ho

ur

$2,7

00.0

0$1

0,36

8.00

$15,

768.

00$2

0,52

0.00

$49,

356.

00$2

3,76

0.00

$28,

728.

00$3

3,48

0.00

$36,

720.

00$1

22,6

88.0

0$1

72,0

44.0

0

Sil

ver

$7.0

0p

er h

ou

r$1

,512

.00

$5,4

81.0

0$8

,127

.00

$10,

962.

00$2

6,08

2.00

$12,

474.

00$1

4,93

1.00

$17,

766.

00$1

9,27

8.00

$64,

449.

00$9

0,53

1.00

Go

ld$5

.00

per

ho

ur

$1,2

37.5

0$4

,275

.00

$6,5

25.0

0$8

,775

.00

$20,

812.

50$9

,900

.00

$11,

925.

00$1

4,17

5.00

$15,

300.

00$5

1,30

0.00

$72,

112.

50

Bu

sin

ess

Sil

ver

$7.0

0p

er h

ou

r$3

78.0

0$7

56.0

0$1

,008

.00

$1,0

08.0

0$3

,150

.00

$1,5

12.0

0$1

,512

.00

$1,7

64.0

0$1

,764

.00

$6,5

52.0

0$9

,702

.00

Mil

eag

e$0

.25

per

mil

e d

rive

n$4

96.5

0$1

,812

.00

$2,7

39.0

0$3

,639

.00

$8,6

86.5

0$4

,158

.00

$5,0

07.0

0$5

,907

.00

$6,4

26.0

0$2

1,49

8.00

$30,

184.

50

P

en

alti

es

$30.

00a

vera

ge

pen

alt

y$1

50.0

0$3

00.0

0$4

50.0

0$5

70.0

0$1

,470

.00

$660

.00

$810

.00

$930

.00

$1,0

20.0

0$3

,420

.00

$4,8

90.0

0

C

ost

Sh

arin

g$2

5,00

0.00

$25,

000.

00$0

.00

$25,

000.

00

G

ran

ts$7

5,00

0.00

$75,

000.

00$2

5,00

0.00

$25,

000.

00$1

00,0

00.0

0

L

oan

s$7

5,00

0.00

$75,

000.

00$0

.00

$75,

000.

00

Tota

l Re

ceip

ts$1

88,0

44.0

0$3

2,68

2.00

$47,

967.

00$6

3,26

4.00

$331

,957

.00

$97,

504.

00$8

7,36

3.00

$103

,392

.00

$111

,348

.00

$399

,607

.00

$731

,564

.00

$156

,957

.00

Pay

me

nts

V

eh

icle

Pu

rch

ase

s$1

5,04

1.00

per

veh

icle

(on

e-ti

me)

*$6

1,11

4.00

$30,

082.

00$3

0,08

2.00

$0.0

0$1

21,2

78.0

0$0

.00

$45,

123.

00$3

0,08

2.00

$30,

082.

00$1

05,2

87.0

0$2

26,5

65.0

0

Tax

, Tit

le, R

egi

stra

tio

n$1

,320

.28

per

veh

icle

(on

e-ti

me)

$5,2

81.1

2$2

,640

.56

$2,6

40.5

6$0

.00

$10,

562.

24$0

.00

$3,9

60.8

4$2

,640

.56

$2,6

40.5

6$9

,241

.96

$19,

804.

20

Car

shar

e E

qu

ipm

en

t$1

,175

.00

per

veh

icle

(on

e-ti

me)

$4,7

00.0

0$2

,350

.00

$2,3

50.0

0$0

.00

$9,4

00.0

0$0

.00

$3,5

25.0

0$2

,350

.00

$2,3

50.0

0$8

,225

.00

$17,

625.

00

In

sura

nce

$525

.00

per

veh

icle

, per

mo

nth

$2,1

00.0

0$3

,150

.00

$4,2

00.0

0$4

,200

.00

$13,

650.

00$4

,200

.00

$5,7

75.0

0$6

,825

.00

$7,8

75.0

0$2

4,67

5.00

$38,

325.

00

G

as$4

.00

per

ga

llo

n$5

29.6

0$9

66.4

0$1

,460

.80

$1,9

40.8

0$4

,897

.60

$2,2

17.6

0$2

,670

.40

$3,1

50.4

0$3

,427

.20

$11,

465.

60$1

6,36

3.20

M

ain

ten

ance

$157

.25

per

veh

icle

, per

mo

nth

$629

.00

$943

.50

$1,2

58.0

0$1

,258

.00

$4,0

88.5

0$1

,258

.00

$1,7

29.7

5$2

,044

.25

$2,3

58.7

5$7

,390

.75

$11,

479.

25

P

arki

ng

$0.0

0p

er v

ehic

le, p

er m

on

th$0

.00

$0.0

0$0

.00

S

ign

age

$150

.00

per

veh

icle

(on

e-ti

me)

$600

.00

$300

.00

$300

.00

$0.0

0$1

,200

.00

$0.0

0$4

50.0

0$3

00.0

0$3

00.0

0$1

,050

.00

$2,2

50.0

0

R

ese

rvat

ion

So

ftw

are

$60.

00p

er v

ehic

le, p

er m

on

th$3

,240

.00

$360

.00

$480

.00

$480

.00

$4,5

60.0

0$4

80.0

0$6

60.0

0$7

80.0

0$9

00.0

0$2

,820

.00

$7,3

80.0

0

In

-car

Har

dw

are

fe

e$1

0.00

per

veh

icle

, per

mo

nth

$40.

00$6

0.00

$80.

00$8

0.00

$260

.00

$80.

00$1

10.0

0$1

30.0

0$1

50.0

0$4

70.0

0$7

30.0

0

S

mar

tCar

d E

qu

ipm

en

t$2

,000

$2,0

00.0

0$2

,000

.00

$2,0

00.0

0

M

arke

tin

g$3

00.0

0p

er m

on

th$9

00.0

0$9

00.0

0$9

00.0

0$9

00.0

0$3

,600

.00

$900

.00

$900

.00

$900

.00

$900

.00

$3,6

00.0

0$7

,200

.00

O

ffic

e (

Re

nt,

Uti

liti

es)

$2,7

00.0

0p

er m

on

th$8

,250

.00

$8,1

00.0

0$8

,100

.00

$8,2

50.0

0$3

2,70

0.00

$8,2

50.0

0$8

,100

.00

$8,1

00.0

0$8

,250

.00

$32,

700.

00$6

5,40

0.00

P

rofe

ssio

nal

Se

rvic

es

$200

.00

per

ho

ur

$1,2

00.0

0$6

00.0

0$6

00.0

0$1

,600

.00

$4,0

00.0

0$1

,200

.00

$600

.00

$600

.00

$1,6

00.0

0$4

,000

.00

$8,0

00.0

0

W

age

s$1

8,61

2.50

$18,

712.

50$1

8,81

2.50

$18,

812.

50$7

4,95

0.00

$22,

250.

00$2

2,40

0.00

$22,

500.

00$2

2,60

0.00

$89,

750.

00$1

64,7

00.0

0

Exe

cuti

ve D

ire

cto

r$5

2,00

0.00

per

yea

r$1

3,00

0.00

$13,

000.

00$1

3,00

0.00

$13,

000.

00$5

2,00

0.00

$13,

000.

00$1

3,00

0.00

$13,

000.

00$1

3,00

0.00

$52,

000.

00$1

04,0

00.0

0

Me

mb

ers

hip

Co

ord

inat

or

$21,

250.

00p

er y

ear

(pa

rt-t

ime

Y1)

$5,3

12.5

0$5

,312

.50

$5,3

12.5

0$5

,312

.50

$21,

250.

00$8

,750

.00

$8,7

50.0

0$8

,750

.00

$8,7

50.0

0$3

5,00

0.00

$56,

250.

00

In

tern

s$2

00.0

0p

er y

ear

(co

mp

l. m

emb

ersh

ip)

$100

.00

$100

.00

$100

.00

$100

.00

$400

.00

$100

.00

$100

.00

$100

.00

$100

.00

$400

.00

$800

.00

Car

Cap

tain

s$2

00.0

0p

er y

ear

(co

mp

l. m

emb

ersh

ip)

$200

.00

$300

.00

$400

.00

$400

.00

$1,3

00.0

0$4

00.0

0$5

50.0

0$6

50.0

0$7

50.0

0$2

,350

.00

$3,6

50.0

0

B

en

efi

ts35

% o

f p

ayro

ll$6

,409

.38

$6,4

09.3

8$6

,409

.38

$6,4

09.3

8$2

5,63

7.50

$7,6

12.5

0$7

,612

.50

$7,6

12.5

0$7

,612

.50

$30,

450.

00$5

6,08

7.50

M

erc

han

t Se

rvic

e F

ee

s3.

00%

of r

ecei

pts

$420

.19

$682

.45

$998

.76

$1,3

23.3

6$3

,424

.76

$1,5

27.6

9$1

,829

.41

$2,2

42.1

1$2

,417

.55

$8,0

16.7

5$1

1,44

1.51

D

MV

Re

cord

s /C

red

it C

he

ck$3

0.00

per

new

use

r (o

ne-

tim

e)$1

,350

.00

$1,5

00.0

0$1

,350

.00

$900

.00

$5,1

00.0

0$1

,350

.00

$1,3

50.0

0$9

00.0

0$1

0,20

0.00

$13,

800.

00$1

8,90

0.00

D

eb

t Se

rvic

e$1

,449

.96

$1

9.3

3/m

on

th/$

10

00

bo

rro

wed

$1,4

49.9

6$1

,449

.96

$1,4

49.9

6$1

,449

.96

$5,7

99.8

4$1

,449

.96

$1,4

49.9

6$1

,449

.96

$1,4

49.9

6$5

,799

.84

$11,

599.

68

Tota

l Pay

me

nts

$118

,825

.75

$79,

206.

75$8

1,47

1.95

$47,

604.

00$3

27,1

08.4

4$5

2,77

5.75

$108

,245

.86

$92,

606.

78$1

05,1

13.5

2$3

58,7

41.9

0$6

85,8

50.3

4

Ne

t P

rofi

t Lo

ss$6

9,21

8.25

($46

,524

.75)

($33

,504

.95)

$15,

660.

00$4

,848

.56

$44,

728.

25($

20,8

82.8

6)$1

0,78

5.22

$6,2

34.4

8$4

0,86

5.10

$45,

713.

66

capital carshare

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