This article is about the short-term rental of cars. For car owners driving passengers, see carpool. For the 2015 British sitcom, see Peter Kay's Car Share.
Opel Corsa owned and operated in Singapore.
Carsharing or car sharing (AU, NZ, CA, TH, & US) or car clubs (UK) refers to several models of car rental or car use, where people rent cars for short periods of time, often by the hour. It differs from traditional car rental in the process of collecting and returning the vehicle, often self-service in nature through an app and without entering an office or agency. It also often differs in the length of hire and the cost structure. In some models a commercial company owns the fleet and offers it for member use, while in others the owners are private individuals organised as a cooperative or ad hoc grouping, or that they list their vehicles as part of a car sharing facilitator, who is a separate entity, distinct from the car owner. Car sharing is part of a larger trend of shared mobility.
Car sharing began with early European cooperative models aimed at community resource sharing rather than commercial profit. The first documented instance was the Selbstfahrergemeinschaft (aka Sefage) cooperative in Zurich, Switzerland, established in 1948.[1] It was largely motivated by economic reasons, enabling individuals who could not afford to purchase cars to share access to one vehicle.[2] The operating model, centered around a small user group, was an early form of the Station-Based/Round-Trip service, where a vehicle was reserved and returned to its original location.[3] The 1970s saw more ambitious, though ultimately short-lived, experiments, including the coin-operated Procotip system in Montpelier, France (1971-1973) and the notable electric-vehicle-based Witkar in Amsterdam (1974-1988).[1] These early programs struggled due to small scale and planning issues, demonstrating that convenience and high vehicle utilization were key to the model's eventual success.[3] Many other shared car experiments were attempted but were unable to grow large enough to sustain, among them: Green Cars (UK, 1977-1984), Bilpoolen (Lund, Sweden, 1976-1979), and Bilkooperativ (Gothenburg, 1985-1990).[4]
1980s–1990s: Cooperative growth and North American introduction
Car sharing saw a resurgence around the 1980s and 1990s with organised, membership-based car sharing programs, particularly in the US and Europe. These were mostly smaller non-profit, cooperative organizations, like StattAuto in Germany, which established viable operational models.[5] similar to initiatives in the Netherlands and in Sweden. [1] In the U.S., early programs like Mobility Enterprise (1983-1986) and the Short-Term Auto Rental (STAR) program in San Francisco (1983-1985) were similarly short-lived.[4] North America had a restart of in their carsharing movement in the 1990s, when Communauto was founded in Quebec City, Canada in 1994, followed shortly thereafter by the first official U.S. operator, CarSharing Portland, in Oregon in 1998, which started with one vehicle and a few neighbors.[6]
Early 2000s: Growth, commercialisation and technological disruption
The growth of car sharing began in the early 2000s, driven by technological advances in communication and reservation systems, as well as rising urbanisation and environmental concerns. The 2000s also marked the commercialisation of car sharing with the launch of major, venture-backed companies.[7]
Carsharing growth in the United States.Zipcar vehicle in London.
Founded in Cambridge, Massachusetts, in January 2000, Zipcar quickly established the commercial Station-Based model in the United States. The subsequent decade brought profound technological disruption via smartphones and GPS. This led to the introduction of the highly flexible Free-Floating (One-Way) model around 2008/2009 (pioneered by services like Car2go), allowing users to pick up and drop off vehicles anywhere within a defined service zone. At the same time, the Peer-to-Peer (P2P) model emerged, pioneered by platforms like Turo and Getaround, which expanded the accessible fleet by allowing private car owners to rent out their personal vehicles . Several car rental companies launched their own car sharing services beginning in 2008, including Avis on Location by Avis, Hertz on Demand (formerly known as Connect by Hertz[8]), operating in the U.S. and Europe; Uhaul Car Share owned by U-Haul, and WeCar by Enterprise Rent-A-Car.[9] In 2010 Zipcar accounted for 80% of the U.S. car sharing market[9][10] and half of all car-sharers worldwide.[11]
In the mid-2010s, car-sharing was becoming an international transportation trend, especially in metropolitan areas.[12] Car sharing also spread to other nations, including Brazil, Mexico, Turkey (Algita, Mobilizm, and YoYo), China, and India. Zarcar, founded in Rio de Janeiro in 2009, was the first car-sharing system in South America.[13] According to Moscow's authority, the number of carsharing journeys in the city averaged 30,000 a day between January and September 2018.[14]
The main factors driving the growth of carsharing were the rising levels of congestion faced by city dwellers, shifting generational mindsets about car ownership, the increasing costs of personal vehicle ownership and a convergence of business models.[15][16]
2020s and future projections: Global scale and electric integration
Today car sharing operates on a large global scale, driven by rising traffic congestion, digital technologies, and a shift away from individual car ownership. All commercial models of car sharing - Station-Based, Free-Floating, P2P - coexist and are rapidly integrating technology like AI for fleet management. The global market size for car sharing, valued at approximately US$7.3 billion in 2024, is projected to reach over $11 billion by 2032, with the Asia-Pacific region (particularly China) holding the largest market share (40% in 2024). Furthermore, a major industry trend is the increasing adoption of Electric Vehicles (EVs), supported by governments and consumer demand for sustainable transportation.[17]
One report predicts global car sharing membership to grow to 138.3 million by the end of 2029 and a total car sharing fleet of about 755,000 cars. The corporate carsharing market is forecasted to reach about 270,000 vehicles in 2029.[18]
Types of car sharing
Car sharing programs can either be commercial business-to-consumer (B2C) or peer-to-peer (P2P). Within commercial car sharing schemes (also known as car clubs), the most prominent models are Station-Based (round-trip) and Free-Floating (one way, A-to-B).
Business-to-consumer
Traffic signs for car sharing and charging parking for e-cars in Germany.
Station-based car sharing
With station-based (or round-trip) car sharing, the cars are permanently stationed at designated stations, typically reserved parking spaces. Members pick up the vehicle at the station, and must return it there. The car must usually be reserved for a specific amount of time in advance, and must be returned before that time ends. Payment is usually both by the hour, and by the distance driven. In exchange, a vehicle can be reserved days or weeks in advance, and it is often possible to reserve a specific type of vehicle, such as one with more seats or greater cargo capacity.
One-way/free-floating car sharing
Enjoy car sharing vehicles parked at an Enjoy Point station in Italy.
One-way car sharing enables users to begin and end their trip at different locations through free floating zones or station-based models with designated parking locations.[19] As of 2017, free-floating car sharing is available in 55 cities and 20 countries worldwide, with 40,000 vehicles and serving 5.6 million users, with Europe and North America representing the majority of the market. In Europe, free floating services took up more than 65 percent in car sharing membership.[20]
The service is expected to reach 14.3 million users with more than 100,000 vehicles by the end of 2022.[21]
In corporate car sharing, the company shares the vehicles and allows multiple employees (rather than just one) to make use of a company car, at times when they actually need it. The vehicles are made available from a corporate car sharing pool, and shared for a fixed or flexible period of time.[22] One shared car could replace up to 8 non-shared cars. However, car-sharing does involves an additional processing and associated costs.[23] Still, it reduces fleet-related costs over the long term and allow employees to save not only on costs but also on time.[24][clarification needed]
Peer-to-peer car sharing
POD cars in Hebden Bridge, UK. POD is a community-owned car club run by local volunteers.
Peer-to-peer car sharing, sometimes referred to as P2P or Personal Vehicle Sharing,[19] operates similarly to round-trip car sharing in trip and payment type. However, the vehicles themselves are typically privately owned or leased with the sharing system operated by a third-party.
Fractional ownership
Fractional ownership allows users to co-own a vehicle and share its costs and use.[25] Neighborhood fractional ownership car sharing is often promoted as an alternative to owning a car where public transit, walking, and cycling can be used most of the time and a car is only necessary for out-of-town trips, moving large items, or special occasions. It can also be an alternative to owning multiple cars for households with more than one driver.[26]
Technology
The operation of a modern carsharing service is entirely dependent on technology that connects the vehicles to a central software platform and the user. While early systems used manual logbooks and key boxes, current services are almost entirely automated through fleet digitalization.[27] The core components of the technology are:
The In-Vehicle Device: Every shared vehicle is equipped with a hardware device, often a telematic control unit, that contains a GNSS receiver for automatic vehicle location (AVL) and a cellular modem for communication. This tracking system continuously reports the car's location to a central server, which is how users can find available cars near them on a map.
The Mobile App: The user interacts with the service almost exclusively through a smartphone app. The app serves as the journey planner, allowing a user to locate and reserve a car. Once a reservation is made, the user's phone is securely authorized to communicate with the vehicle for the duration of the rental.
Remote Control: The in-vehicle device is connected to the car's internal systems, such as the door locks and ignition. When a user initiates a command from their mobile app (e.g., "unlock"), the request is sent to the carsharing service's central server. The server then relays this secure command to the telematic control unit in the car, which executes the action of locking or unlocking the doors.[28]
The in-vehicle device also collects telemetry data, such as the distance traveled and the duration of the trip, which is automatically sent back to the central server for billing purposes, completing the self-service process.
Traffic in Delhi, India. Car sharing can help reduce traffic congestion and improve air quality.
Transport is one of the largest sources of greenhouse gas emissions. To meet climate targets, car use needs to decline significantly, meaning fewer vehicles on the road and less driving overall (UNFCCC, 2021).[29] Car sharing, often organised through car clubs, has emerged as an alternative to private car ownership and a way to reduce car dependency.
Most studies suggest that car sharing results in a range of benefits including traffic congestion, air quality improvements and reductions in carbon footprints.[30] The primary mechanisms are that fewer cars are needed to service demand (lowering production emissions) and that, once people give up owning a car, they use other forms of transport more with the carshare vehicle used occasionally. The existence and size of any gains depend on the design of the system (Station-based performs better than One way) and the travel behaviour of the participants before and after.[31] If people have already significantly reduced their car miles driven before giving up their car then the gains are smaller. Similarly, some people can access cars who previously would not have done so.
Car clubs specifically have been shown to lower car ownership and usage since their introduction in Europe and North America in the late 1980s.[31] Early studies found that many members sold their cars or delayed buying one after joining.[32][33][34][35] A major review of 25 studies estimated that 20% of members gave up a car and 40% avoided buying a new one, with each shared car replacing about five private vehicles.[36] Later research suggests even greater impact: 9–13 cars per shared vehicle in North America[37] and 14–32 in the UK.[38] Car clubs often replace second household cars and encourage members to drive less and use public transport more.[39][40][41] Unlike carpooling or peer-to-peer sharing, car clubs operate fleets that are centrally managed by commercial providers. Thanks to newer vehicles and reduced driving, car clubs can cut carbon emissions by up to 18%.[42][39] Members typically report driving 40–60% fewer miles, with over a quarter reducing annual mileage by more than half.[43][36]
Difference from traditional car rentals
Blue Car-sharing street markings in Bremen, Germany.
Car sharing differs from traditional car rentals in the following ways:
Car sharing is not limited by office hours.
Reservation, pickup, and return is all self-service.
Vehicles can be rented by the minute, by the hour, as well as by the day.
Users are members and have been pre-approved to drive (background driving checks have been performed and a payment mechanism has been established).
Vehicle locations are distributed throughout the service area, and often located for access by public transport.
Insurance: (this section is US specific) state minimum liability insurance (only $5000 in some states), comprehensive and collision insurance. They do not provide uninsured, under-insured or personal injury protection insurance.
Fuel costs are included in the rates.
Yandex.Drive, the largest car sharing operator in Russia, uses mobile fuel trucks to refuel its vehicle fleet.
Vehicles are not usually serviced (cleaning, fueling) after each use. Members are usually required to refuel the vehicles if fuel runs low, with the cost borne by the car sharing provider.
With car sharing, individuals have access to private cars without having costs and responsibilities associated with car ownership (except for fractional ownerships).[45] Some car share operations (CSOs) cooperate with local car rental firms, in particular in situations wherein classic rental may be the cheaper option.
The insurance policies on carsharing greatly varies among companies, but all car sharing firms provide insurance that at least meets the legal minimum requirements for the given region of operation.[citation needed] Rob Lieber of The New York Times has criticized car sharing firms such as Zipcar for the paltry coverage afforded car sharing drivers.[46]
↑Prieto, Marc; Baltas, George; Stan, Valentina (1 July 2017). "Car sharing adoption intention in urban areas: What are the key sociodemographic drivers?". Transportation Research Part A: Policy and Practice. 101: 218–227. Bibcode:2017TRPA..101..218P. doi:10.1016/j.tra.2017.05.012. ISSN0965-8564.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
