<img The leading luxury brands BMW and Mercedes have invested heavily in car sharing networks. In this new business model people do not own a car outright anymore but pay for the right to use a car for short journeys and pay either for each kilometre driven and/or time spend in the car. It is predicted that by 2020 Mercedes and BMW will generate more than 1 billion Euros each in revenues from their car sharing businesses in Germany (Gibbs 2013). In this car sharing model, the cars are owned by a separate firm and are ‘shared‘ among a number of people throughout the day. It is similar to traditional car rental, however the time span for each rental is usually shorter and may range from several hours to a few minutes. According to Zhao (2010) car sharing has also environmental benefits each shared vehicle is replacing 15 personally owned vehicles. Important for the success of car sharing is effective fleet management which includes the servicing of the cars and the ability to locate suitable vehicles via smart phones. Access to parking facilities at reasonable rates will also be important for the success of the model (Borgman). In Sydney, 15000 people have joined car sharing schemes and the City of Sydney has made 400 car parking spaces available for car sharing vehicles (cityofsydney.nsw.gov.au). According to a study conducted by SGS Economics (2012) car sharing has contributed 18.5 million savings for residents through the deferral of car purchases.
Michael Borgman, Carsharing ein neues Geschaeftsmodel fuer Autobauer accessed 12 September at http://www.frost.com/sublib/display-market-insight.do?id=190795176
Nick Gibbs, Daimler, BMW bullish on car-sharing ( August 13, 2013) Automotive News Europe accessed 12 September 2013 at http://europe.autonews.com/article/20130813/ANE/308139999/daimler-bmw-bullish-on-car-sharing#axzz2eremVxR0
David Zhao, Carsharing: A Sustainable and Innovative Personal Transport Solution with Great Potential and Huge Opportunities ( accessedat 12 September 2013 at http://www.frost.com/sublib/display-market-insight.do?id=190795176