Silly question #30: should I 'share' my car?

Monday, 7 May 2018

Register with Roam and renters will be able to unlock and drive you car with their mobile phone.

In an age where we're talking more about 'mobility' and much less about being a 'motorist', the concept of car sharing is on the rise - globally but now also in New Zealand.

By 'car sharing', we mean allowing others to use your vehicle at pre-agreed times and (usually, but not always) being compensated for it. When money's changing hands that's pretty much 'renting' of course, but the concept is a lot broader than that and 'car sharing' is the term that has stuck.

It's like Airbnb, but without the beds; unless you're sharing a campervan (that can happen).

There are already a number of app-based car sharing services available in NZ: some, like Yourdrive and Roam, facilitate peer-to-peer car rentals. Others, like Yoogo (EV only), Mevo (plug-in hybrid) and CityHop, manage a fleet of dedicated vehicles.

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It's a sure sign that it's an important and growing industry when car brands are getting in on the act.

Toyota NZ's Financial Services division has entered into a partnership with software company Mindkin to trial car-sharing software that allows fleet users to locate, unlock and start a car with their mobiles.

Yourdrive founder Oscar Ellison: car sharing can't flourish without good public transport options.

Audi NZ is involved with Mevo through its fleet of A3 e-tron plug-in vehicles.

Some new models, like this year's forthcoming third-generation Mercedes-Benz A-class, now have car-sharing-compatible software integrated into their operating systems right from the factory.

It's not all about expensive, hi-tech cars. Some independent providers, such as Roam (powered by Mindkin software), will install a 'car kit' on its members vehicles that allows renters to unlock and start them without the key once they have made the booking on their app (most post-2004 cars contain the electronic architecture to allow this).

The key thing about peer-to-peer renting is that if you own a vehicle, don't need the use of it 24 hours per day and don't have an issue with other people driving it, you can register the vehicle with a car-sharing service and make some money.

Yourdrive, launched three years ago, is currently the largest car-sharing service in NZ, with 10,000 registered users. It booked 12,000 rental days in vehicles in the last year.

Chief executive Oscar Ellison says the company has grown 420 per cent in the last financial year, mostly because of demand in high urban density areas: 'This pattern is similar to overseas markets where there is a strong correlation between a city's population and the development of the car sharing market.'

Car sharing schemes are on the rise worldwide. Yourdrive facilitated 12,000 rental days in the past year.

'We are finding that consumers understand the benefits of this transport model, but need alternative options in place to make the leap and forgo car ownership.

'Recent postgraduate research out of Victoria University found the biggest driver of peer-to-peer rentals in NZ is the existence of good public transport infrastructure.

'For Kiwis to divorce themselves completely from car ownership we need to help them understand that public transport is really a multi-modal concept. In practice this means you might take the train or bus to work, then take an Uber to an evening event - but for a weekend away you would turn to car sharing,' says Ellison.

Ellison says vehicle owners are earning up to $1500 for longer bookings, with the biggest earner so far taking in $7400.

Typical prices include $49 per day for a 2008 Honda Fit, $59 per day for a 2006 Nissan X-Trail SUV, $130 for a 2014 Toyota Highlander seven-seater and $159 for a 2016 Volkswagen Polo.

How do you become a renter?

Anybody can rent out their car, as long as it has a Certificate of Fitness (CoF). Think of it as a tougher Warrant of Fitness. You can get that at a testing station, although some car-sharing services can arrange that for you as part of your membership. Insurance is the other big thing, but again - many services will take that on for you as well (don't worry, the cost of all of this will be reflected in the commission you pay to the provider).

Breakdown cover is a good idea as well, because if somebody is renting your vehicle and it breaks down, you'll need to recover it.

Beyond that, you'll be able to simply sign up to a sharing service and make your car available to rent. You'll generally be able to specify when and where it's available, of course.

What you'll actually earn depends on the rate you can set (which depends on your vehicle) and the provider you're signed up with. As a guide, Yourdrive will take 40 per cent of your published rate, which covers website advertising, no-excess insurance for the full period of each 'share' - and of course its profit.