Travis County Commissioners Court
January 19, 2010,
Item 27
So, 27 is to receive presentation by representatives from car2go regarding business model for transportation and mobility challenges in the central business district and take appropriate action.
and we'll call 30 next.
yes, sir.
>> my name is paul delong and I'm head of sales and marketing for car2go in Texas and north america.
today, what I would like to do to the court is kind of introduce car2go and talk about what our business model is right now and what we think could be a perfect fit for the county and its employees and later down the line for the residents of Austin.
currently, right now, car2go is a daimler-owned company which we are headquartered here in Austin Texas.
>> what kind of company?
>> a daimler company.
we are head quartered on west and 5th and currently right now what we are is what we would term as part of a solution for transportation needs for Austin.
what I mean we are car sharing 2.0.
you've probably seen in the downtown area a lot of blue and white vehicles, smart vehicles parked on the side of the road and you probably see a lot of them in the city in downtown area itself.
what car2go is is we are an alternative to owning a vehicle in which you would become a member of our service and what we would do is provide you with a vehicle, one of our 200 vehicles at our station throughout the downtown complex, and what you would be able to do is access that vehicle and go and make short trips.
what we've seen in our data is short trips are defined by 18 to 20-minute one-way trips and what we do is we allow people to use our vehicles and make one-way rentals, meaning that they can take a vehicle, take car2go on the street, access that vehicle, and go to their destination but they don't have to return it back to the destination which they picked it from.
part of what we do here with car2go in Austin is that we charge by usage, so we charge by the minute.
basically, with other car-sharing and rental companies that are out there, they charge by the half hour, by the hour, by the day.
what do we is, it only makes sense if someone needs to use the vehicle for five or 10 minutes that we only charge that.
what that charge includes is your fuel, your insurance, your parking.
and obviously the maintenance of the vehicle and mileage.
so the person is not responsible for paying for parking on any -- on the streets in Austin, and at that point they're not responsible for refueling the vehicle.
so we pay for that, for that member.
currently, right now, we are in a pilot phase currently right now with the city of Austin, and we really feel that this could be an opportunity for the county with its employees, as far as with the introduction of the shuttle service that what we think is a perfect compliment we can help the people that use the shuttle service that they can and member of our service if they need to run a quicker rand or there is business need -- quicker land or there is business needs they can use rise our car for the day.
we have business and private accounts which, for example, in the city there is 34 departments and the county there are certain departments which people can access the vehicles on the department or city account or county account or they can determine if it's for private usage.
so what we do is with capital metro, with the rail systems that are soon to launch and with the bus systems is that what we encourage our people to utilize the public transportation needs or other shuttle service or surveyiance services, come downtown and if they need to thrawn quick errand they can access our vehicle so we're trying to engage people in using alternative forms of transportation and we're part of that solution that can get people their destination during the course of the day.
and that's what car2go is currently right now.
>> do you have -- you say you had -- you charge by the what?
>> department.
>> no, no, as far as the use of the vehicle, you charge by the what?
>> we charge by usage, by the minute.
>> by the minute.
>> by the minute, correct.
>> how much is that per minute?
>> 35 cent as minute.
and we have -- cents a minute.
and we have an hourly break at 12-99 and a day rate of 65.99.
i need to make a note the day rate is set at 65.99 and we set that a little bit high because in order for our business model to work we need people to take short trips, not long trips.
we don't want people going to dallas and san antonio with three-quarter vehicles.
we need to keep them in a confined area in Austin in the downtown area which people can access the vehicle, use the vehicle for five or 10 minutes, go to their destination, leave the vehicle there, another member comes out of the courthouse or wherever, they can gain access to the vehicle and go on with their business or personal need they need do that day.
>> but you're saying the distance that normally that you probably are looking at is about 10 minutes?
>> yeah.
what we've been seeing is, from an average of 18 minutes, as far as a total rental goes, so people going to their one-way destination about 18 minutes to get to that destination.
>> about 18 minutes?
>> um-hum.
>> okay so some of this is in walking distance, right?
>> yes.
in ineconomy meant weather it kind of happen -- inclement weather it happens too, 18 minutes that is driving time, so you know, yes.
i'm assuming that people could walk to that end destination, as well.
>> 10 minutes, depending on traffic.
you industrial to contend with traffic.
you're not going to get in it and go from point a to point b unless traffic conditions help to also be factored in for the time is concerned.
>> that's a great point is that what we're learning is that people are finding new ways how to move, so instead of taking i-35 or mopac, people are using alternative ways to get to their destinations that tipcally they won't use.
because obviously you're getting charged by the minute, you're absolutely right.
if you're in traffic 15 or 20 minutes you're being charged by traffic if you're only going two miles but people are using new methods and ways to get to their destinations that weren't used before with their own vehicles.
>> the vehicles still have to add here to traffic conditions and traffic regulations.
>> that's correct.
that's correct.
but they're findingal tern of it ways to get to their -- finding alternative ways to get to their destinations.
>> it thick service would be bought by the entity that allow the employees to utilize these particular vehicles.
>> correct.
so fleets, for example.
so departments are, because obviously we pay for the maintenance, the fuel, the insurance, so what we're seeing is companies, private businesses that come to us and say, listen, we have these huge expenditures every your in regards to fuel in regards to insurance.
what we think is this is a great possibility and solution we can capitalize using you guys, air maintaining vehicles, changing tires, changing oil, fueling up my vehicles, keeping them clean, relocating the vehicles that you know what, it makes a lot of sense for us to use you guys instead of us spending huge amounts of money maintaining our vehicles every year so they have that option.
but what we're also seeing is again the private use.
so again, it's getting into -- it is such a doesn't concept for people because everyone is used to owning a vehicle and what we think is that, and what we're seeing is that people are becoming more and more confident in knowing that, you know what, even though I don't have to own this vehicle, you know, I feel in control knowing that a vehicle is always there so, you know what, if I need go run an errand I will hit the button that says private use and in turn that department that typically would be paying for that would not be charges that private usage.
going to lunch or whatever the rules are for that entity, that we can basically have the member choose between private or departmental use.
>> I've got other questions.
>> sure, a lot of questions.
>> a lot of information here.
>> absolutely.
>> this essentially functions as a, kind of like taxi service except you're driving the taxi?
>> yes.
absolutely.
i mean, being considered that, yes.
>> okay.
my understanding is the city of Austin is utilizing car2go fairly heavily for city of Austin staff moving back and forth from the barton springs offices to the city hall.
>> correct.
>> and other departments in the downtown business district.
>> correct, Commissioner.
>> I have bus riders in my office who are also -- who signed won private accounts so when they take the bus in they have the utilization of a car downtown.
>> correct.
>> and my understanding is the big dividend difficult dent here is not so much to have Travis County have corporate accounts and utilize car2go's fleet vehicles, although that is a possibility, is we have a considerable amount of traffic between our central business ricket and our airport -- business district and our airport and with this you have 10 people using 10 vehicles in one spot instead of 10 people using 10 vehicles in 10 spots.
>> that's correct.
>> and current three is available for private individuals to sign up too.
>> current three is part of the pilot group.
for example the city of Austin employees, they have an opportunity to drive it on their private time, as well.
so with the county as well, we would offer that same concept to you guys to be part of this pilot program during this phase, as well.
they would have the option to use private use, too.
>> you would make it available, just to recap that, so people inside the building listening to this, if a county employee -- and this is what we did in our office, if a county employee wanted to be involved in the pilot, do they sign up with you all to get a car.
as I understand it and as I test drove it, you just take a card and stick it up against the wind shield and it reads the card and then charges you 35 cents a minute, you hit end and it bills you.
>> that's correct.
>> and -- okay.
>> that's correct.
>> those are my questions.
>> I received a phone call from a taxi driver whose position was taking a taxi is probably better.
and I guess in terms of cost, is this cheaper than a taxi or about the same?
>> to be honest with you what we've heard is that we've complimented the taxi services to a certain degree in which we're short trip the way taxi driver would prefer the airport trips, a little bit longer distant trips.
so for us, a $20 cab right, for us, you know, we want to stay out of that, you know.
that is, for us, we're about short trips, 5 to 10 minutes, 15-minute trips to whole foods and come back.
typically we don't see lot of taxi cabs weight at whole foods, so what we wan to do is, you know, promote short trips.
15-minute trips or 5-minute trips or 10-minute trips.
so I think from a taxi standpoint they would prefer the longer trips than the five-minute trips for a revenue standpoint.
>> so when I see several cars parked alongside of the street at the university of Texas between ut and 35, those cars are owned by you and your company.
>> that's correct, sir.
>> not the city of Austin.
>> that's correct.
>> I've never seen one of those cars going down the street with a driver, but if I wanted to see what, what is the best location?
>> the best location is actually right by the library, we have cars stationed in this vicinity right now.
>> I mean actually move, down the street with a driver.
>> go by city hall, by barton springs, you will see a ton of cars near the river rotating and saint elmo, some city facilities.
one of the interesting things we're seeing, and we're starting to get more and more feedback because we're about two months into the pilot, librarians are using the heck out of these cars now going from branch to branch.
we're seeing the fire department use these vehicles more and more.
the police department were using more of these vehicles more and more.
so we're trying to gather all this information and we just think that with the county, with the different departments that you guys have we think this could be a good benefit for you guys, as well.
>> mr.
priest.
>> thank you, judge.
one of the things I wassing dido ask, how many cars are in this program because I saw like 30 of them at 505 barton springses and I couldn't find a parking spot because there was so many of these cars.
>> we have 200 vehicles currently right now spread out throughout the city.
what happens is, this is the natural gravitation in which a lot of employees, for example, city hall and barton springs, a lot of the Austin energy locations, what they say, you know, we base about 10 or 30 vehicles in designated parking areas for car2go and one thing I need to clarify too is for us, for our concept, we have to have a lot of vehicles so we can make sure that people have access to the vehicles but it is also a smart -- it is a two-seater vehicle.
what that does is allow us to create new parking spots, new space that couldn't be used by typical mid-sized vehicles, we're able to create new spots using these vehicles.
plus, it makes sure that everyone understands that, you know further comments leave a vehicle and close a rental, it is always a two-seater.
meaning if we had doesn't model vehicles, a four-seater or van, they know in the back of their minds when they access the car2go it is always two-seater.
i just wanted to make that known.
>> I had a lot of questions but only one other question, if I were to take -- if write a city employee and I was to take it car from city hall down barton springs or anywhere else, maybe it is an area where you're not going to find a large concentration of these vehicles, I do keep that car rented for the time that I need use it?
because if I take a car out to the botanical gardens and then somebody else says, oh, here is one of these cars and then takes it, you know, in other words as soon as I have my rental somebody else can jump in that car.
>> that's correct.
>> so the only way to ensure being able to use this car for other than short errands like you're saying is rent it for a long period of time and it seems like that really is just another one of these programs that competes against all the other transportation modes we have like cab drivers and cap metro and it is another taxi-shuttle service.
>> you know, I heard your comments before about the studies and everything that you're studied out and I'm sorry for addressing your previous question.
>> that's fine.
>> but for us it's a pilot, to be honest with you.
we have to test this out.
enough of the surveys for us, we have to put it into action to see if this thing works.
it's working right now.
and to be honest with you, the top question is I'm stranded and let my car about and another member came and picked up the vehicle.
when you become a member there is a phone number on the back and we would becausecally relocate a vehicle or locate a vehicle that is closest to you.
depending on whether or not you decide to end your rental so we do have some people, we do have contacts that you could contact that we could get a vehicle to you very close.
>> so if I take one of those cars to the restaurant for lunch.
>> yes, sir.
>> and I have lunch and I come out, it may be there or it may not.
>> that's correct.
but the concept --
>> if I want to keep it, is there something I can do to reserve that car during lunch so it will be there when I come out?
>> yes, you can reserve vehicles about 15 minutes before your dew departure, before you leave with the vehicle.
so it's 12:00, you go to lunch and about -- you end your rental.
now you are a little nervous because there is a lot of other people that are members in this area so they can possibly come out, take your vehicle and you're left at that restaurant.
there's two things is that for us, we will have multiple vehicles in that vicinity in which basically you would be able to visibly see our car2gos or nowhere others are so it may not nobody that destination you initially parked at.
you can call our phone number and say, hey, my vehicle is gone, I need to locate noc vehicle and there could be another one that is 20 yards to your right or ofth street or 7th street -- 6th street or 7th street, they would locate a vehicle for you.
another things is 12:00, you sit down for lunch and make a reservation for the same vehicle you left at 12:10, and immediately what would has been is that vehicle would be reserved for your usage when you come back.
>> okay.
>> one of the things is that, one of the interesting things we're seeing from our cars is that people are not reserving cars.
people are just walking up to them.
it is what we call spontaneous rentals.
we have so many vehicles out there right now, people aren't reserving vehicles, they walk up to the vehicle, see it is accessible and immediately get in and go so that's one of the other interesting things we're finding out during this pilot phase.
>> so we'll hear more about this later?
more specific?
that would be a more specific information?
>> yes.
>> okay.
>> I have one more specific question, and you brought up a good point, judge, a good analogy you just brought up,.
i can hear your concern.
in other words, you take one of these vehicles, you're going to go to lunch and you come out there and your vehicle is gone.
somebody else that's in the membership see it and just get your card, swipe it and through the mechanism that you have set up and drive off.
so the person that's sitting there having lunch is out of a vehicle.
and if he reserve it is, if a person reserves it for a certain length of time, I'll be at lunch for a few minutes and I want to reserve it for an how were, lunch ain't going to last more than an hour, blah, blah, blah, and can they set a block, block off some time where no one can touch that vehicle for their allotted block time.
in other words, anybody else come swipe through there with a card it won't do anything.
the only thing that will be allowed to access that vehicle would be the person that helps set aside the blocked hour for their time.
have that been looked into?
>> once it gets into the 12 12:5 range, he went to lunch at 12:00 and it is now 12:15, our gps systems are looking at the vehicle, accessing, at this point, he double have doesn't ha confirmation on what license plate, what specific vehicle he will reserve so the satellites are locating in the next 15 minutes.
if there is not a vehicle in the surrounding area in 15 minutes he will put it into reserve status.
>> but see, my question is this, though.
follow me.
the situation is that I take a vehicle and go to lunch.
i'll be at lunch for an hour and I want this vehicle for an hour, in other words, I want to have it restricted just for my use for an hour's time is there any mechanism or provision in there that I could have that vehicle for an hour without anybody else touching it?
>> no.
>> that's my point.
>> you can get out of the vehicle and not end your rental.
>> correct, you always have the opportunity to keep the vehicle.
>> a whole hour, allotted time for that vehicle.
>> sure, take the keys like you normally would own a vehicle, you take the keys, you would not end your rental if in, have lunch, come back out and the vehicle is there.
>> that is what I was alluding to.
>> we don't have a mechanism saying you can quarantine this vehicle for an hour.
>> but you have access to it.
>> absolutely, take the keys like you normally would, like you own a vehicle go in, half lunch, come back out and access the vehicle.
>> exactly.
judge, I don't know when you made your comments if that was it but that is the way I looked at that time.
>> want to get involved in the pilot, how do they contact you?
>> just give us a call in our offices.
just give us a call in our offices.
it's a county employee, absolutely by telephone.
>> what's the number?
>> area code 512-480-0813 or e-mail us at Austin@car2g.com.
>> thank you very much.
we'll talk about you further.
>> thank you very much.
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Last Modified:
Tuesday, January 19, 2010 4:03 PM
