Shared Mobility: Current Practices and Guiding Principles

Chapter 1. Introduction

Background

Advancements in social networking, location-based services, the Internet, and mobile technologies have contributed to a sharing economy (also referred to as peer-to-peer sharing, the mesh economy, and collaborative consumption). The sharing economy is a developing phenomenon based on renting and borrowing goods and services, rather than owning them. This sharing can occur among peers (e.g., community drivers, peer-to-peer carsharing, or bikesharing) or through businesses (e.g., a carsharing operator). The sharing economy can improve efficiency, provide cost savings, monetize underused resources, and offer social and environmental benefits.

Fueled by the Internet, the sharing economy traces its origins to the late 1990s’ dot-com boom. Early websites, such as eBay, Craigslist, and PayPal, enabled a marketplace where individual entrepreneurs had access to a global clientele. Peer-to-peer (P2P) sharing via file-sharing networks, such as Napster, was one of the most prominent sharing models of the early 2000s. Technological advancements facilitated changes in consumption and financial transactions. These advancements also more broadly facilitated sociological transformations regarding how people view resources.

Technological advancements coupled with the Great Recession of 2007 to 2009 became a driving factor for many individuals and households rethinking resource use. During the late 2000s, numerous sharing models emerged, such as P2P marketplaces (e.g., Airbnb), crowdfunding (e.g., Kickstarter), and shared mobility (e.g., Getaround). Market valuations for companies in the sharing economy have ranged from a few hundred million to billions of dollars:

• In April 2011, Zipcar, a carsharing company providing short-term (e.g., hourly) vehicle rentals, raised $174 million in its initial public offering (IPO), giving it a valuation of $1.2 billion (Ovide, 2011). The Avis Budget Group acquired Zipcar for $500 million in January 2013 (Tsotsis, 2013). 
• By December 2014, Uber, the ridesourcing platform that provides door-to-door for-hire vehicle services, was valued at $41.2 billion (Picchi, 2015 ). Between mid-2012 through 2014, the company grew to more than 160,000 drivers (Hall & Krueger, 2015). Just one year later, Uber was valued at $70 billion.
• As of March 2015, Airbnb, a website to list, find, and rent lodging, was valued at $20 billion (Saitto, 2015). An average of 425,000 people rent a room from Airbnb every night worldwide (Stein, 2015).

Shared mobility, the shared use of a motor vehicle, bicycle, or other low-speed transportation mode, is one facet of the sharing economy. Shared mobility enables users to obtain short-term access to transportation as needed, rather than requiring ownership. Shared mobility includes carsharing, personal vehicle sharing (i.e., P2P carsharing and fractional ownership), bikesharing, scooter sharing, ridesharing, and on-demand ride services. Alternative transit services, such as shuttle services, paratransit, and microtransit, supplement fixed-route bus and rail services. Shared mobility also includes ridesourcing (sometimes referred to as transportation network companies or TNCs), such as Lyft and Uber; ridesplitting (e.g., UberPOOL and Lyft Line) in which passengers split a fare and ride; and e-Hail (app-enabled taxis). Finally, courier network services (CNS) or flexible good delivery are included in this taxonomy. CNS provide for-hire delivery services for monetary compensation via an online application or platform to connect couriers using their personal vehicles, bicycles, or scooters with freight (e.g., food, packages).

In North America, the first carsharing and bikesharing programs launched in 1994. Shared mobility services have grown rapidly since then. Some benchmarking data include:

• As of July 2015, there were 20 active carsharing programs in Canada, 22 in the United States, one in Mexico, and one in Brazil-totaling approximately 1,530,190 carsharing members sharing 25,574 vehicles in the Americas. These numbers include roundtrip carsharing and one-way carsharing operators; they do not include P2P carsharing (Shaheen & Cohen, unpublished data).
• As of October 2015, there were 30,750 bikes at 3,200 stations across 87 IT-based public bikesharing programs in the United States serving three user groups-members (users with an annual or monthly membership); casual users (short-term bikesharing users with 1- to 30-day passes); and occasional members (users with a key-fob to pay for a short-term pass) (Meddin, unpublished data).
• As of July 2011, there were an estimated 638 ridematching services in North America, based on an extensive Internet search. This tally includes both online (most have an Internet-based component) and offline carpooling and vanpooling programs. Those located in sparsely populated rural areas, which appeared to have very low use, were excluded. Institutions that have their own ridematching website but employ a common platform were each counted separately. Of the total, 401 were located in the United States and 261 were in Canada (24 programs span both countries) (Chan & Shaheen, 2011).

In recent years, shared mobility has developed rapidly due to advances in technology and evolving social and economic perspectives toward transportation, car ownership, and urban lifestyles. Economic, environmental, and social forces have pushed shared mobility from the fringe to the mainstream, and its role in urban mobility has become a popular topic of discussion.

Recognizing this growing transportation phenomenon, the Federal Highway Administration (FHWA) is pleased to present Shared Mobility: Current Practices and Guiding Principles. Development of this primer was made possible by 23 specialists and practitioners that conducted an expert review of this primer and participated in a one-day workshop in June 2015. The workshop brought together "thought leaders"; from across North America to discuss shared mobility and how to help public agencies develop supportive policies and programs. It is important to note, however, that this is a rapidly evolving field, which requires ongoing tracking and evaluation. This guide presents current understanding at the time of this writing.

How To Use This Document

This Shared Mobility Primer will be of value to individuals, public agencies, and communities who want to know more about shared mobility and to communities interested in incorporating shared mobility into their transportation networks. This primer is a practical guide with resources, information, and tools for local governments and public agencies seeking to implement emerging services or to manage existing shared mobility services.
The following are some suggestions for the primer’s use:

• Access shared mobility resources. Review findings from numerous sources highlighting challenges, opportunities, lessons learned, and best practices deploying shared mobility across North America. What are key guiding principles for implementing shared mobility? Appendix A includes tables with key data that can aid in policy development, and Appendix B contains a glossary of terms. Use this primer for strategic transportation planning. How might shared mobility impact congestion, air quality, emissions, and parking? How could shared mobility enhance accessibility and mobility? 
• Reference this primer to aid public policy development. What are the risks and opportunities presented by shared mobility and how can opportunities be leveraged and risks be managed?

Shared Mobility Primer Overview

As noted above, this primer presents an overview of current practices, lessons learned, and guiding principles for public agencies to advance shared mobility in transportation planning and programs. The primer is organized into the following chapters:

• Chapter 1: Introduction. This chapter provides an introduction to and overview of the primer.
• Chapter 2: Overview of Shared Mobility Services. This chapter synthesizes existing literature on the definitions and types of shared mobility services available, at present.
• Chapter 3: Shared Mobility Impacts: Current Understanding. This chapter reviews North American shared mobility impact studies including: carsharing, bikesharing, ridesharing, and ridesourcing.
• Chapter 4: The Role of Public Agencies in Shared Mobility. This chapter presents common areas in which local and regional governments and public agencies have an impact on shared mobility. Topics include health, safety, and consumer protection; taxation; insurance; parking and rights-of-way; signage and advertising; multimodal integration; planning processes; data sharing, data privacy, and standards; and accessibility.
• Chapter 5: Lessons Learned and Challenges in the Future. This chapter reviews common challenges, success stories, best practices, and recommendations for shared mobility. Topics include public and private sector definitions; the government's role in the sharing economy; shared mobility as a component of transportation policy and planning; multimodal integration; developing metrics and models for measuring environmental and economic impacts; accessibility and equity issues; consumer protection; insurance; and data sharing and privacy.
• Chapter 6: Guiding Principles for Public Agencies. This chapter concludes the primer and discusses guiding principles for public agencies seeking to incorporate shared mobility into their transportation networks. 

Key Terms Used In The Primer

The following key terms are used throughout the primer. A complete glossary is provided at the end of the document.

	Alternative Transit Services: Alternative transit services is a broad category that encompasses shuttles (shared vehicles that connect passengers to transit or employment centers), paratransit, and private sector transit solutions commonly referred to as microtransit.
	Bikesharing:In bikesharing systems, users access bicycles on an as-needed basis for one-way (point-to-point) mobility and/or roundtrips. Station-based bikesharing kiosks are typically unattended, concentrated in urban settings, and offer one-way station-based service (bicycles can be returned to any kiosk). Free-floating bikesharing offers users the ability to check out a bicycle and return it to any location within a predefined geographic region. Bikesharing provides a variety of pickup and drop-off locations. The majority of bikesharing operators cover the costs of bicycle maintenance, storage, and parking. Generally, trips of less than 30 minutes are included within the membership fees. Users join the bikesharing organization on an annual, monthly, daily, or per-trip basis.
	Carsharing: With carsharing, individuals have temporary access to a vehicle without the costs and responsibilities of ownership. Individuals typically access vehicles by joining an organization that maintains a fleet of cars and light trucks deployed in lots located within neighborhoods, public transit stations, employment centers, and colleges and universities. Typically, the carsharing operator provides insurance, gasoline, parking, and maintenance. Generally, participants pay a fee each time they use a vehicle.
	Courier Network Services (CNS): CNS are also referred to as flexible goods delivery. They provide for-hire delivery services for monetary compensation via an online application or platform (such as a website or smartphone app) to connect couriers using their personal vehicles, bicycles, or scooters with freight (e.g., packages, food). Although the business models in this realm are evolving, two general models appear to have emerged—P2P delivery services and paired on-demand passenger ride and courier services.
	Microtransit: This is a privately owned and operated shared transportation system that can have fixed routes and schedules, as well as flexible routes and on-demand scheduling. The vehicles generally include vans and buses.
	Ridesourcing: Ridesourcing companies (also known as transportation network companies (TNCs) and ride-hailing) provide prearranged and on-demand transportation services for compensation, which connect drivers of personal vehicles with passengers. Smartphone mobile applications facilitate booking, ratings (for both drivers and passengers), and electronic payment. Ridesourcing also includes "ridesplitting," in which customers can choose to split a ride and fare in a ridesourcing vehicle (where available).
	Scooter Sharing: With scooter sharing, users gain the benefits of a private scooter and/or neighborhood electric vehicle (NEV) without the costs and responsibilities of ownership. Individuals typically access scooters and NEVs by joining an organization that maintains a fleet of them at various locations. Typically, the operator provides power/charging or fuel, parking, and maintenance. Generally, participants pay a fee each time they use a scooter/NEV. Trips can be roundtrip, one-way, or both.

Shared Mobility: This term refers to the shared use of a motor vehicle, bicycle, or other low-speed mode.

REFERENCES

Chan, N., & Shaheen, S. (2011). Ridesharing in North America: Past, Present, and Future. Transport Reviews, 1-20.

Hall, J., & Krueger, A. (2015). An Analysis of the Labor Market for Uber’s Driver-Partners in the United States. 1-27.

Ovide, S. (2011, April 14). Zipcar IPO Soars 66% Out of the Gate. Retrieved from The Wall Street Journal: http://blogs.wsj.com/deals/2011/04/14/zipcar-ipo-soars-66-out-of-the-gate/

Picchi, A. (2015 , January 22). Uber raises $1.6 billion to speed expansion. Retrieved from CBS News: http://www.cbsnews.com/news/uber-raises-1-6-billion-to-speed-expansion/

Saitto, S. (2015, March 1). Airbnb Said to Be Raising Funding at $20 Billion Valuation. Retrieved from Bloomberg: http://www.bloomberg.com/news/articles/2015-03-01/airbnb-said-to-be-raising-funding-at-20-billion-valuation

Stein, J. (2015, February 9). Some French Guy Has My Car. Time, pp. 33-40.

Tsotsis, A. (2013, January 2). Car Rental Company Avis To Buy Zipcar For $500 Million. Retrieved from Tech Crunch: http://techcrunch.com/2013/01/02/avis-to-buy-zipcar-for-500-million/