Peer-to-peer carsharing

The concept

Peer-to-peer carsharing is a form of person-to-person lending or collaborative consumption, as part of the sharing economy. The business model is closely aligned with traditional car clubs such as Streetcar or Zipcar (est. in 2000), but replaces a typical fleet with a ‘virtual’ fleet made up of vehicles from participating owners. With peer-to-peer carsharing, participating car owners are able to charge a fee to rent out their vehicles when they are not using them (cars are driven only 8% percent of the time on average).

Participating renters can access nearby and affordable vehicles and pay only for the time they need to use them. In 2011, an American research company Frost & Sullivan calculated that an average Getaround renter saved over $1,800 per year by using a car-sharing service over owning a car for the same number of miles driven. In 2014, the United States House Committee on Small Business stated that “buyers pay less than they would without the service, and sellers earn more--if only because they often would not be able to bring their service to market without the peer-to-peer platform.”

Businesses within this sector screen participants (both owners and renters) and offer a technical platform, usually in the form of a website and mobile app, that brings these parties together, manages rental bookings and collects payment.

As with person-to-person lending, the Internet and the adoption of location-based services as well as the spread of mobile technology have contributed to the growth of peer-to-peer carsharing. Also, millennials are less attracted to car ownership as previous generations.

Enabling legislation

Many personal auto insurers in the U.S. exclude coverage for commercial use of insured vehicles either through a livery and public transportation exclusion or a specific "personal vehicle sharing program" exclusion. In 2011, California passed Assembly Bill 1871, which prohibits insurance companies from classifying vehicles as "commercial" based on participation in private car sharing, as long as the income does not exceed the expenses associated. Several other states in the U.S. have passed similar legislation, including Oregon, Washington, Maryland, and Colorado.

Prohibitions

In the U.S., New York is the only state that does not allow peer-to-peer car rental because the owner cannot exclude him or herself from liability to a renter.

Ecological impact

Peer-to-peer car sharing has the potential to reduce the number of vehicles on the road and lower pollution levels.

References

1. (2019). "The Sharing Economy and the Relevance for Transport". Academic Press.
2. Berger, Suzanne. (2013). "Making in America: From Innovation to Market". MIT Press.
3. (December 8, 2010). "Online Rental Markets Are Thriving". [[Yale School of Management]].
4. Pozin, Ilya. (July 19, 2012). "10 Greatest Industry-Disrupting Startups of 2012". [[Forbes]].
5. Gansky, Lisa. (2010). "The Mesh: Why the Future of Business Is Sharing". Penguin.
6. Karmann, Markus. (2011). "The Rise of Collaborative Consumption on the Example of Couchsurfing". GRIN Verlag.
7. (June 7, 2011). "GetAround Connects Car Owners And Renters With P2P Marketplace". [[Business Insider]].
8. (January 15, 2014). "The Power of Connection: Peer-to-peer Businesses". [[United States House Committee on Small Business]].
9. Duffer, Robert. (August 29, 2018). "With carsharing, your car can make – instead of cost – you money". [[Chicago Tribune]].
10. Ostrofsky, Marc. (2013). "Word of Mouse: 101+ Trends in How We Buy, Sell, Live, Learn, Work, and Play". Simon and Schuster.
11. Bell, Linda. (May 11, 2019). "Don't want to buy a car? Rent your neighbor's". [[Fox Business]].
12. [http://www.irmi.com/online/prmi/ch006/1l06j000/al6j1400.aspx International Risk Management Institute - Personal Vehicle Sharing Program Exclusion Endorsement]
13. Whittaker, Richard. (March 15, 2013). "SideCar to City: Have App, Will Travel ... to Court". [[The Austin Chronicle]].
14. Gorenflo, Neal. (30 September 2010). "California's P2P Car-sharing Bill Signed Into Law".
15. "Oregon House Paves Road for Peer-to-Peer Car Sharing".
16. Elliott, Christopher. (October 13, 2018). "The War Between Car Sharing And Rental Companies Just Escalated. Here's Why You Should Care". [[Forbes]].
17. (May 30, 2019). "Peer-to-peer Motor Vehicle Sharing Program". [[Colorado General Assembly]].
18. "Sharing is caring with proper auto insurance: why car sharing can't catch a brake". Reuters.
19. (2002). "Solar Today". [[American Solar Energy Society]].