1. IS PERTH READY FOR CAR
SHARING?
Louise Round
AITPM National Conference August 2014
2. CAR SHARING
Characteristics of car sharing
Provision of a fleet of vehicles
Parking spaces at key locations
Short term hiring of the vehicles
Booking and accesses to vehicles takes minimal effort
Collaborative consumption
Self drive taxi
Louise Round Consulting
3. KEY SUCCESS FACTORS
Demographics
Income levels
Age group
Household size
Population Density
10 minute walking distance of the car
Social and economic activity
Transport Alternatives
Public transport
Vehicle ownership rates
Parking
Partnerships
Local Government
Car manufacturers
Public transport providers
Louise Round Consulting
4. QUANTITATIVE FACTORS
Factor Low Growth Area High Growth Area
Single person households Minimum 30% Between 40% and 50%
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Walk to work
Employed persons
Minimum 5% Between 15% and 20%
Households with no vehicle Minimum between 10% and
15%
Between 35% and 40%
Households with no or one
vehicle
Minimum 60% Between 70% and 80%
Housing units per hectare Minimum 12 Minimum 12
5. AUSTRALIAN CONTEXT
State of the Industry
Australian market had a total
revenue of $43.1M
Growing at about 25% per annum
Continuing growth over the next
five years
Council examples
City of Gold Coast
City of Melbourne
City of Sydney
Manly Council
City of Waverley
Louise Round Consulting
7. COMPARISON OF FACTORS
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Factor Gold Coast
(selected area)
City of
Melbourne
City of
Sydney
City of
Manly
Waverley
Council
Single person households
32 35 40 24 31
Walk to work
Employed persons
9 16 25 5 5
Households with no vehicle
13 29 35 12 18
Households with no or one
vehicle
47 68 73 53 60
Population with a Bachelor
Degree or higher
17 44 40 40 40
8. HISTORY OF CAR SHARE IN PERTH
Louise Round Consulting
City of Fremantle
10. FUTURE OF CAR SHARE IN PERTH
Louise Round Consulting
Factor
(Percentage)
City of Perth City of Fremantle City of Subiaco
Single person households
42 31 37
Walk to work
Employed persons
23 6 10
Households with no vehicle
22 11 13
Households with no or one vehicle
65 50 56
Population holding a Bachelor
Degree or higher
36 29 46
11. HOW AND WHERE TO IMPLEMENT CAR
SHARE
Perth shows potential
Partnerships
Local government
State government
Department of Transport
Department of Housing
Car manufacturers
Residential developers
Universities
Louise Round Consulting
Apartments
with car
bays
Easy
parking
No
transport
gap
High levels
of car
ownership
No demand
for car
share
From previous work that I had done I knew that in Perth households with low, or no, car ownership were that way through choice.
A conscious choice to live in an area close to amenities, employment and public transport.
Car sharing showed twin factors of high income and low car ownership being good indicators that a car share scheme would be successful.
Members in North America tend to be in their 30s or 40s, which is in contrast to Australia where 70% of consumers are under 35, with declining numbers in the 35 – 54 age group.
Emphasis on Public Transport and partnerships
The low growth areas are where car share may be viable but there is likely to only be a low growth of any car share service that is provided.
For high growth areas car share would be expected to succeed.
The housing density does not need to be particularly high. As with many of the factors there is likely to be a little bit of cause and effect.
Housing density difficult to use as it changes very rapidly. 10 minute walk to a car.
Market includes p2p and ride share
Overall market had a total revenue of $43.1M in the 2012-13 financial year
Growing market, good rates of return, only down side is a relatively high capital cost of start up. So with my redundancy payout giving me a healthy bank balance it looked like a good time to take the plunge.
So the next question was where in Australia was car share already operating and did the factors that I had identified apply to these areas?
Gold Coast
Sydney
Melbourne
Brisbane
Availability of figures for a fair comparison
Proximity of Sydney and Waverley helps to support each other.
Some 700 residents of Manly already used a car share scheme outside the Manly area.
Red shows the population density
10 MINUTES
Gold Coast closest to integration with public transport. It is provided by a private company but promoted on the Gold Coast Public Transport site.
So having seen that these North American factors would appear to apply in Australia, I looked at car share in Perth
Since writing my paper the City adopted a Car Share Policy last month, written by the City’s Sustainability Officer.
The City was approached by three separate parties in a matter of weeks about bringing car share to Fremantle.
Department of Finance - responsible for parking revenue.
Developer approached the Sustainability Officer, through an existing connection in this area.
For those that don’t know Fremantle it has a large ‘alternative’ community who are very interested and knowledgeable about environmental matters.
One of the companies suggested that the City fund the car share with the purchase of electric vehicles.
Things have been changing in car share since its original environmental origins. There is increasing commercialisation of the companies, and the market is consolidating
This means that Councils across Australia are now under pressure not to give valuable parking spaces to start up companies at no cost.
It is just this sort of partnership that start ups need.
Having decided on the key success factors my assumption was that the City of Subiaco would have areas that met the criteria.
The City of Perth, which is geographically very small, was another obvious place to look.
It has no specific policy on car share.
The Economic Development Team, within the City of Perth’s Planning and Development Department is aware of what is happening interstate with car share schemes.
However the City would not currently fund, or provide financial support to, a car share scheme.
For off street parking the City of Perth believes that would be a purely commercial arrangement between a developer and a car share firm.