Zipcar Inc., a leading car-sharing service, announced the results of a global car-sharing study that offers a first-time comprehensive analysis of the potential for car-sharing programs in urban areas and universities around the world. The Zipcar study, derived from an in-depth benchmarking model of 75 global cities, reveals a potential global car-sharing market of more than 37 million members and annual revenues that could top 10 billion dollars.
According to the study, cities with the highest potential for car-sharing, including Hong Kong, London, New York City, Paris and San Francisco, exhibit similar qualities such as high population density, extensive public transit systems and a relatively high burden of car ownership. Cities with less expensive parking, lower education attainment levels and higher vehicle ownership rates offer a less conducive business environment for car-sharing.
“This study confirms that car-sharing is a mainstream service, and underscores the global economic and environmental impact of the industry,” said Scott Griffith, Chairman and CEO of Zipcar. “As Zipcar expands our network of vehicles around the globe and invest in new technologies, car-sharing will continue to become even more convenient and cost effective than owning a car. Based on ten years of experience, knowledge and analysis, we are fully aware that the cities investing in the car-sharing model and the residents therein will reap economical and ecological rewards.”
Applying the total estimated members to Zipcar’s own historical data, the sizable economic and environmental benefits from car-sharing include:
- Cost reduction: With an average savings of over 7,000 dollars per year compared to owning a car, there is potential to return 260 billion dollars back into local economies around the globe.
- Congestion Reduction: With an average 40 percent reduction in vehicle miles traveled (VMT), there is potential for 92 billion fewer miles traveled (annually). With an average of 60 percent of members avoiding purchasing or selling a vehicle, there’s potential to remove 22 million cars from dense urban areas, government fleets, and university campuses.
- Emissions reduction: Fewer vehicles and reduced VMTs could prevent 40 million tons of CO2 emissions (annually).