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September 01, 2013 01:00 AM

Five companies pioneering car-sharing

The basic business model for car sharing is already established: Most companies use some type of online or mobile reservation system, let customers rent by the hour or day, and cover insurance and gas for members.

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    Car2Go is a Daimler initiative that uses its Smart ForTwo model for low-cost car sharing. It is currently active throughout the United States, Canada, United Kingdom, Germany, Italy, France, Austria and the Netherlands. Car2Go differs from other automaker-backed initiatives in that vehicles operate in a 'home area' that encompasses downtowns and surrounding neighborhoods instead of being confined to a single spot or parking lot.Members can pick up ForTwos anywhere in the home area and drive for as long and far as they want, although they must park the vehicle within the home area. Parking spots around the city are also reserved for Car2Go vehicles and some municipalities such as Austin, Tex., have arrangements with Car2Go that allow vehicles to be parked at any metered parking for free.Car2Go charges a fixed rate by the minute - a rarity among car sharing companies that usually require a minimum of an hour and vary rates depending on demand (i.e. higher rates on weekends or lower past midnight) and car type. This, combined with the ability to pick-up and park vehicles anywhere in the home area, makes Car2Go a service geared towards one-way, quick trips.
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    Mu by Peugeot, backed by the French automaker, does not specialize in car sharing per se. Instead it offers 'mobility solutions' that include cars, vans, scooters, bikes (both mountain and road) as well as accessories such as GPS, DVD players, and bike carriers.Mu by Peugeot is currently only operating in the U.K. Customers must buy credits to rent vehicles. Rental periods start at a half-day and can be expanded up to multiple weeks at fixed rates.
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    Many car sharing enterprises have offered deals to corporations and universities in exchange for guaranteed usage. U Car Share, an initiative by Uhaul, focuses almost exclusively on these two types of customers. Software developed by U Car Share allows drivers to be monitored. For example, parents can sign up their college kids and set usage times, monetary limits, and keep track of their driving habits to make sure they are using the vehicles to go to the library and not the club. Credit: Wikimedia Commons
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    City CarShare is a San Francisco-based non-profit that provides car sharing for the Bay Area through a variety of monthly and annual packages. Car-sharing companies backed by automakers have the advantage of vehicles and capital, but City CarShare shows why local upstarts shouldn't be counted out. The non-profit uses its local status to offer many perks with its membership, including discounts at local businesses, automatic toll payment, access to neighborhood carpooling, and free or reduced membership at the network of partner car share companies in cities across the globe. Credit: City CarShare
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    Ford of Germany's new initiative establishes car sharing in its dealer network on a national scale. Ford2Go transforms car sharing into a marketing tool by attracting people who wouldn't normally visit Ford stores. Credit: Ford Motor Co.
    But it's still a young business and there is a lot of innovating going on. Here are five car share initiatives to keep an eye on. - Shiraz Ahmed
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        • Haig Partners: Buy-Sell Q&A: Where the Automotive M&A Market is heading
        • Haig: Buy-Sell Q&A: What is the value of an M&A advisor?
        • Siemens: The impact of vehicle electrification and connectivity on electrical system design
        • Text2Drive: Digital retailing meets the service department
        • Urban Science: Promoting dealer-consumer alignment across continued industry evolution
        • Western Digital: To Meet Consumer Demand, Automakers Must Double Down on Agile Development
        • Wipro: How to address safety and security for software-defined vehicles
        • Wipro: The Promise of Software-Defined Vehicles and the Cloud Car Ecosystem
        • Notarize: What to expect for the future of auto sales
        • Seagate: Unlocking value from connected-car data
        • Amazon Web Services: AI-powered supply chain decision-making
        • Epic Games: Five ways in-car designs will change in the next five years
        • Haig Partners: How are dealerships being valued today?
        • Haig Partners: Dealership consolidation trends
        • Haig Partners: Dealership valuation trends
        • Haig Partners: Dealership succession planning
        • Ally: Navigating the future of automotive retailing
        • Google: How a century-old brand is transforming the auto industry
        • Car Wars: Is a Rise in Service Leading to Poor Customer Satisfaction?
        • Solera | DealerSocket: Four real-time integrations that can save your dealership time
        • Solera | DealerSocket: Time for a new pre-owned pricing tactic
        • Kerrigan Advisors: Blue Sky Update Q4 2021
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