Many New Yorkers are familiar with car-sharing services — like Zipcar, Hertz Connect, Enterprise CarShare, and Carpingo — that charge by the hour or day, with a reserved space where customers must start and finish a round-trip rental. Daimler-owned Car2Go operates differently: it charges by the minute or hour, and is focused on one-way rentals, allowing users to return a car to any on-street space within the company’s service area. The company, already operating in ten North American markets, is eyeing New York.
A Car2Go vehicle in the UK advertises free parking for customers -- but the company actually pays a significant amount to cities in order to use curb space. Photo: Elliott Brown on Flickr
“In the last few months, Car2Go has met with several New York City community groups, as well as NYC DOT,” Car2Go East Coast business development manager Josh Moskowitz said in an e-mail. Those meetings included a presentation to the transportation committee of Brooklyn Community Board 7, which covers Windsor Terrace and Sunset Park, indicating that the company is looking beyond Manhattan.
While the potential entry of point-to-point car-sharing to New York has implications for transportation behavior (Will it induce more car trips? Will it encourage households to go car-free?), it also raises another important question: How much is a parking spot worth?
When it launched a 200-car fleet in Washington, DC, last year, Car2Go paid the local government $578,000 annually, or $2,890 per car. The payment granted its users unlimited access to all residential permit zones and metered spaces at no direct cost, though the cars are still subject to rush-hour and street-sweeping restrictions. (The District government’s car-share manager at the time was Josh Moskowitz, before Car2Go hired him.)
When the company decided to expand its fleet by 100 vehicles, it paid the DC government an additional $215,300 per year, or $2,153 per car. In Portland, Car2Go pays the city $1,009 per vehicle per year for curbside access.
It’s not just general access to the curb that’s being sold for thousands of dollars each year. Car-share services are also paying cities for specific parking spots. In 2010, the DC government auctioned off 86 curbside parking spaces to car-share companies, fetching an average of $3,485 for each space, according to TBD.com.
Instead of an auction, San Francisco has opted to give car-share services access to hundreds of spaces in exchange for set fees. High-demand areas would command higher prices; as a result, the city expects to earn anywhere from $600 to $2,700 for each space annually. In Los Angeles, the city has entered into an agreement with Hertz in which the company pays at least $1,500 per space each year [PDF].