Car sharing is a growth industry, as pioneer City CarShare
would tell you, and it has beneficial environmental and economic impacts. Studies of car sharing services
like Zipcar and City
CarShare show that for every car that is shared, up to 15 private
vehicles are taken off the road.
Owning and operating a personal car is the second-highest family
expense behind owning a house, and the highest expense for people who rent.
The car sharing model, however, is predicated on operating in dense urban areas where there is good transit and a large pool of prospective customers who don't want to own a car. On the other hand, it doesn't make financial sense for car sharing
companies to operate in suburbs or rural areas. Not yet, at least.
City CarShare is trying to pioneer personal vehicle sharing, where car owners would make their vehicles available to a pre-screened pool of personal vehicle sharing participants during the periods of the day when their car is not in use, which for many vehicles is upwards of 90 percent of the time.
If you drove to work in San Francisco and left your car idle from 8 am to 6 pm, for instance, you could allow a pool of prospective vehicle share participants to use your car, for which you would make enough money to cover the cost of usage. If you consider the cost of owning and insuring your car to already be a sunken expense, this could be a way to "make" money for a commodity that is otherwise depreciating in value.
Of the many challenges to expanding car sharing to privately owned vehicles, the first obstacle is current insurance law. In most states, unless you are commercially licensed or you operate a livery service, receiving compensation from others for using your vehicle voids your personal car insurance coverage.
To this end, City CarShare has been working with California State Assemblymember Dave Jones (D-Sacramento) and Spride Share, a new company started by cleantech financier Sunil Paul of Spring Ventures, to draft Assembly Bill 1871, which would change insurance law to permit remuneration for personal vehicle sharing.
"The idea is to make it possible for people to participate in car-sharing programs," said Assemblymember Jones. "This is part of a package of approaches that look at ways we can engage insurance companies in a positive way to encourage better environmental behavior."