Question

Briefly describe the characteristics (three key elements) of an area where carsharing can be successfully implemented.

Answer 1

The 3 key elements of an area where car sharing can be successfully implemented can be as follows:

1. Lack of public transportation system and subway lines

Public transport system( rail, taxis.metro) provide a high entry barrier to car sharing ecosystem. Imagine a city like New York which has strong subway and public transport infrastructure. Because of lost cost of public transport, travellers will have low incentive to move to car sharing.

2. Abundance of Parking space

There need to be space for car sharing pods where all the inventory( cars) can be parked. Its not like all the cars will be in operations 24/7. Usually during late night, there will be low demand for car sharing services. Hence, there needs to be appropriate parking space to keep idled cars.

3. Overall safety

Imagine an area where there is large frequency of crimes such as stealing, increased crimes towards women. This area is bound to have low success of car sharing because travelers will be reluctant. A strong policing network & high safety is required for successful adaption of car sharing ecosystem.