University of California Institute of Transportation Studies

Transportation access is a significant issue in low-income, rural, and otherwise underserved communities in the US, with few affordable and reliable alternatives to car ownership. Carsharing is one promising alternative to improve access among marginalized communities. Grant programs in California have funded pilot electric carshare services. But little is known about the long-term financial sustainability of these services and how their costs and revenues compare those of transit. In this study, a financial model was used to estimate the net operating income (fare revenue minus costs) for Míocar, an electric carsharing service in marginalized suburban and rural communities. The estimated net operating income per month was −$1561, under current operating conditions, and ranged from −$1255 to −$1623 depending on simulated changes to fleet size, pricing, and usage rates. These negative net operating incomes correspond to a shortfall (or need for subsidies) of 68% to 92% of operational costs. Míocar could achieve a higher ratio of fare revenues to operational costs (13%) than existing transit (3 to 8%). To minimize required subsidies, electric carshare operators and prospective carshare communities should carefully consider hub locations (which can affect usage rates), the number of vehicles per hub, and the expected demand over time.