By Samantha BeermanPLAY Writer
Car-sharing saves money and the environment – and might even help pick up girls. “Once I was out with these two girls and they were very impressed,” says Mark Yoon, a car-sharing member who occasionally uses the service on dates. It especially attracts the environmentally conscious and vegetarian types, he adds.
But more than just improving his social life, car-sharing allows Yoon, 23, to run errands and drive friends without the hassle and costs of owning his own set of wheels. “I think it’s just a perfect fit for my transportation needs and what I think is good for the world and city,” Yoon says.
More than 90,000 people participate in car-sharing programs around the country including programs at more than a dozen college campuses. Yoon is a member of iGo, one of 17 car-sharing organizations with 1,737 cars in the United States, according to a study by Susan Shaheen, a University of California, Berkeley research scientist. And now college students have the opportunity to get involved. Shaheen’s study predicts that the college campus portion of U.S. car-sharing will increase from 4.6 percent of the market in August 2005 to 23 percent in the next five years. This jump shows the appeal of car-sharing for college-age students, due in part to the environment in which they were raised. “People in your generation have an entirely different view on accessing things versus owning things,” says John Williams, a spokesman for FlexCar, another car-sharing organization. “You guys are the ones who on rare occasion buy a full CD; instead, you only buy a few songs you want from iTunes. A very natural extension of that coming out of college is to look at car ownership entirely differently – why own a car when you can just use it on an hourly basis?”
This growth led iGo to expand services to Northwestern University’s campus on April 21. Joining iGo normally requires a one-time membership fee of $50 and a $25 annual fee. On the standard plan, users then pay $6 an hour and 50 cents per mile to use the cars. To promote the service at Northwestern, the organization reduced the registration fee to only $25. Within three weeks, 43 people signed up. “I can literally tell you we’ve never had more sign-ups than for this offer,” says Richard Kosmacher, iGo Sales and Marketing Manager. iGo had approached Northwestern about putting a car on the Chicago campus and the discussion led to a spot on the Evanston campus as well. “It was kind of a no-brainer once we understood what the service was and did our homework,” says Eugene Sunshine, senior vice-president of business and finance at Northwestern. Northwestern supported the program by sending out an email to all students and staff at the school, informing them about the car and the special offer. “The email went out and immediately our phones were ringing off the hook,” says Sharon Feigon, CEO of iGo.
Most people hear about these car-sharing programs through community events or member referrals. Yoon, a project manager and information systems manager at the Northwestern University Medical School, saw an iGo booth at a block party-type event and became interested. Although he is the only one of his friends to participate so far, he has been enthusiastic in his recommendation of car-sharing. But sometimes it is simpler than Yoon’s experience, with curiosity often bringing in customers. With the iGo logo on both doors, “our cars are our best form of advertising,” Feigon says. And the word is spreading. “The greater the knowledge is, the greater they will be used,” says Cheryl Wollin, the alderman of the first ward in Evanston.
Car-sharing works differently than just car rental. iGo members, for instance, can make a reservation in half-hour increments on the Internet or from their cell phone. If no one else is using the car, the member only has to take their “smart card” membership card, press it to a sticker on the windshield and the car opens. From there they just take the keys and go wherever they need, simply returning the car when done. “There is no office or building. The car is the office,” says Kosmacher. “There is no paperwork and no lines.” iGo member Edmund Furlan, 21, has found, though, that with the increasing popularity, it may get harder to use the car spontaneously. “Reservations do get filled up,” he says. “You have to know a day or two ahead of time what your plans are.” But even so, Furlan says that sometimes he calls in at the last minute and gets lucky. Also, when renting a car, you have to fill it with gas or pay to have it filled. With car-sharing everything is bundled together – the gas, the insurance, the maintenance and the time you use the car.
But the biggest difference between the two remains in the effect on behavior. “I see a decrease in automobile ownership or a postponement in purchase, a decrease in miles traveled and an increase in private cycling and walking. With car rental you don’t see that type of effect,” Shaheen says. iGo member Elise Zelechowski, 27, a University of Chicago urban planning student, currently owns a car, but she says it is on its last leg and she won’t be replacing it. Instead, she plans to use the car-share program (and carpool with friends), which will be enough to satisfy her transportation needs.
But as with car rental, car-sharing faces the obstacle of how to insure its drivers. After Sept. 11, insurance rates skyrocketed. For now, most car-sharing programs require members to be at least 21 years old for insurance purposes. Although that still beats car rental, which has a minimum age of 25, it poses a problem, especially on college campuses. While car-sharing benefits some juniors, seniors, graduate students, faculty, staff and others who are older than 21, younger students are left out. “If I could use it I would,” says Sean Ages, 19, a Northwestern student. “I think in theory the iGo program is a good idea, but the way they executed it where only seniors can use it is a bit useless.” Shaheen sees a growing interest in those under 21, but for now that market is left untapped. “I think as interest in the market grows, car-sharing programs, from my experience, are very innovative and can come up with creative solutions to addressing barriers such as insurance,” she says.
And as car-sharing expands into new markets, college students embrace the idea, in part because of their concern for the environment. Each car-share vehicle in use reduces the number of cars on the road by 10, estimates Feigon. And with fewer cars on the road, the amount of pollutants released into the air is reduced. “I think it’s a worthwhile endeavor because you are going for efficiency,” says Anthony Maietta, a life scientist for the air and radiation division of the Environmental Protection Agency, Region 5. “If you’re reducing the amount of cars out there then there is less traffic and cars flow more freely and that’s when cars run more efficiently.”
It helps that most of the car-sharing organizations use low-emission vehicles and so release less gas. The iGo fleet includes Honda Civics, Civic Hybrids, Honda Elements and soon the Toyota Prius.
These cars keep the air cleaner – and costs low for members. “My bill is rarely over $150 a month, which doesn’t even cover what I’d be paying in insurance, gas and maintenance,” Yoon says. With gas prices climbing near $3 per gallon, people have even more reason to use car-sharing, which includes gas in the price of membership.
Furlan, a student at Loyola University, Chicago, used to own a car, but had to start taking public transportation once gas prices rose. “I couldn’t afford to pay for gas and go to college,” he says. “I can only work during the summer and all the money went to gas.” While companies have absorbed this spike in cost, they say it hasn’t had a negative impact. It’s made running the business more expensive, but on the other hand, gas prices have attracted more members, so it balances out, says Williams.
And with all the expenses that accompany driving, car-sharing allows
members to enjoy the benefits of a car without spending the money to buy their own. Yoon sees these benefits particularly when he goes out at night. iGo cars are free for members between 11p.m. and 7a.m., so when he and his friends hit the clubs, Yoon, acting as designated driver, can transport them around town without the cost of an expensive taxi ride. And with parking another hassle for drivers, particularly at universities, the advantages of car-sharing adds up. At Northwestern, where parking spaces are scarce, the program creates less demand for spots, according to Sunshine. Students can appreciate that, especially when a parking space on Northwestern’s campus in the lot. The iGo car costs $426, but a reserved spot like it for a regular car goes for $639 per year.
These benefits make car-sharing appealing, but the solution to the problems that still exist, like insurance, lies in the future of car-sharing. While organizations work on these improvements, they will also be expanding into other cities and services. Experts say the face of car-sharing will continue to evolve. “It won’t look like it does today necessarily,” says Shaheen. “It’s not going to just be this neighborhood car-sharing concept.”
She predicts car-sharing will become more diversified, including more activity in the business sector and on college campuses. As for Northwestern, Sunshine, Kosmacher and Feigon agree that if the pilot car is successful, they would like to expand to more cars on campus. “This is a really interesting opportunity for us,” Sunshine said at the iGo ribbon cutting ceremony at Northwestern on May 9. “There is potential to grow into something big from a small start.”
For now, car-sharing continues to free members from the shackles of their own car. “It’s a lot easier to be independent without the cost,” says Yoon, who used to borrow his family’s car. And driving a car-share car probably attracts more girls than mom’s mini-van.4
Medill junior Samantha Beerman is a PLAY writer. She can be reached at [email protected].
