Vehicle sharing systems allow customers to use various vehicles without owning them. There are different types of vehicle sharing systems on the market. Differences can be the vehicle shared, like car sharing, bike sharing, scooter sharing or electric vehicle sharing. Besides the type of the vehicle, one main difference between vehicle sharing systems is the vehicle holder. Most commonly, the operator owns the vehicles he shares with his customers. Another opportunity is peer-to-peer vehicle sharing, where the users share their vehicles. For each vehicle sharing system, it is necessary to ensure the accessibility of the vehicles and to manage the location and operation of the vehicles.
Reducing use of fossils, 4
Increasing safety, 12
Recycling waste, 65
Reducing operation costs, 345
Functions help you to understand what the products can do for you and which ones will help you achieve your goals.
Each solution has at least one mandatory function, which is needed to achieve the basic purpose of the solution, and several additional functions, which are features that can be added to provide additional benefits.
Average implementation time: < 2 years
Initial investment amount: around 2,000,000 Euro for a system with 150 cars
Most of the vehicle sharing systems which are already implemented depend on agreements between a car-sharing company and the local city administration, especially regarding parking policies. Existing use cases have proven to be highly successful in cities. According to Navigant Consulting, the industry worldwide currently has an estimated size of $1.1 billion and is expected to grow to $6.2 billion by 2024.
(Korey Clark, 2016)
The most common business model for vehicle sharing systems around Europe is to offer of free-floating rentals. Thereby, the cars can be parked park in specially designated parking spaces or standard parking areas with a permit from the local municipality. The customers are charged in a per-minute base and a subscription fee. The minute-based fee usually varies between 0,2 €/minute and 0,5 €/minute, depending on the vehicle sharing system and the vehicle used. The subscription fee typically amounts 0 € to 20 €. Some vehicle sharing companies also offer hourly-based or daily-based rates.
Besides the revenue of the charges, the cars can offer a marketing channel for the vehicles within the fleet. The primary costs of a vehicle sharing system are the initial costs for vehicles and the chargers if necessary. The operational costs are mostly the costs of fuelling, maintaining and cleaning the vehicles as well as expenses related to customer service and insurance.
(Dr. Scott Le Vine et al., 2014), (Francesco Ferro et al., 2015)
Business Model Canvas
The picture shows a typical Canvas for a vehicle sharing system. It gives an overview of the business model discussed above. Some of the aspects are not necessary within the basic version of the solution vehicle sharing system, but they come along with implementing some of the additional could-have functions.
(Francesco Ferro et al., 2015)
A public charging infrastructure for electric vehicles can be supportive as electric vehicles might be part of the shared vehicle fleet.
- Parking fees and equality of all cars limit the freedom to operate
- Age limits used by different car sharing providers: Usually between 18 and 21 years of age or depending on the time holding a driving license
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