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Cities can profit from car sharing 2 July 2014

Posted by cooperatoby in Amsterdam.
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When a fleet of shared cars is introduced in a city, this can arouse resentment among existing car owners because they can’t park in the reserved parking bays. Cities typically bill the operator for these spaces. An evaluation of the car2go free-floating car sharing scheme concludes that Amsterdam actually makes a small profit from it.

a mass of car2go carsThe car2go scheme, using 300 electric smart cars, was launched in 2011, and the impact assessment published in November 2013 shows that the income from the parking charges alone, less the estimated loss from selling resident’s parking permits and from visitors using parking meters, is €39,100. This without taking environmental and convenience benefits into account.

The calculation is as follows. Car2go now has 17,500 members who make 10,000 trips a week. The city charges €675 for parking each of 300 cars, which brings in an income of €202,500. As against this, it sells 320 fewer residents’ parking permits at €205 (= €65,600) and earns €105,000 less from parking meters paid for by visitors. The combined loss is €170,000, leaving a profit of €39,100.

In comparison there has been some controversy in Seattle, where car2go pays $1,330 (€973) per car per year, which one blogger reckons is too cheap, given the market price of parking. The city’s report is here.

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