Why Carsharing?

What is Carsharing?

Carsharing is car mobility on demand, where members pay only for the time and/or distance they drive. It is a membership-based service that provides car access without ownership.

How it works: Individual and/or families apply to qualify to become a member (drivers’ license, credit card on file, etc). Once a member, they can make a reservation with any of the cars in the fleet. They pick it up at the start of the reservation, get access through their phone, and bring it back at the correct time and/or location and make sure it is ready for the next member.

Why Carsharing?

Supports public transit

Carsharing and public transit are the ideal combination for individuals and families to live car free or a second car option for their families.

Carsharing fills the gaps where public transit alone isn’t enough. It provides first- and last-mile solutions, helping more people access buses, trains, and metro systems easily.

Enhances Equity and Accessibility

By integrating intentionally certain carshare locations, cities can enhance car access for affordable housing and urban planning and can ensure equitable transportation access for all. Partner with carsharing to innovate ways to expand mobility options for low-income residents, seniors, students, and people with disabilities who cannot own or choose to not own a car.

Efficient land use

The demand for parking in cities is a major urban planning challenge. Carsharing reduces the need for large parking lots, allowing cities to repurpose space for parks, bike lanes, pedestrian areas, and housing developments—creating more livable, walkable neighborhoods. Mobility Hubs are becoming the best practise for shared mobility connecting all modes for easy access.

Carsharing's Place

We have a tool, called carsharing. Carsharing is one of the only proven tools, the traditional round-trip carsharing model, that can actually change behavior that leads to the reduction of people using cars, reduction in car ownership over time, and increase in the use of other modes of transportation.Carsharing is the only quantifiable, tested and studied program, and if I were a city, this would be one of the first things I would focus on to change behavior in our transportation system

– Tim Papandreau
Former Chief Innovation Officer | Emerging Transportation Systems at San Francisco Municipal Transportation Agency, WAYMO, Google

Carsharing Modes

Carsharing organizations have three main modes. A carshare organization can have one or a combination of the following modes.

'Two way' or 'Station-based'

‘Two way’ or ‘Station-based is the original mode where cars are parked in neighbourhoods and it becomes “their car”. It is reliable through a reservation.

'One way' or 'Free floating'

‘One way’ or ‘Free floating’ is a fleet of cars parked within a geo zone. The phone app shows where the cars are and when you need one, you can “reserve” for 30 minutes to get to the car and get access. You can keep it as long as you want and bring it back within the geo zone, lock it and it will be ready for the next member.

Peer-to-Peer (P2P)

Another mode is ‘Peer to Peer’ where individuals rent other people’s cars through an application. This is facilitated by a platform – sort of an ‘airbnb’ for cars. The organization provides the platform, but does not own and not responsible for the fleet. This maybe helpful where traditional carshare operators are not able to be viable such as in some rural areas.

Carsharing has evolved to meet the unique needs of cities and users around the world. Whether you’re a municipality exploring sustainable mobility options or a startup looking to enter the space, understanding the different carsharing business models is key.

Every carsharing organization (CSO) is different, but carsharing has a number of distinct business models that incorporate the these modes. ➡️

Benefits of Carsharing

For Members

Carsharing offers convenience and cost savings, eliminating the need for car ownership expenses like insurance, maintenance, and parking. Members enjoy access to vehicles when they need them, without the financial burden of ownership—perfect for occasional drivers, city dwellers, and those seeking a more sustainable lifestyle.

For Cities

Carsharing reduces congestion, lowers emissions, and optimizes the use of existing infrastructure. By decreasing private car ownership, cities can free up valuable space for green areas, bike lanes, and pedestrian-friendly streets. It also supports public transit networks by providing a flexible, on-demand mobility option that fills first-mile/last-mile gaps.

For Developers

Integrating carsharing into residential and commercial developments enhances property value, reduces the need for excessive parking infrastructure, and attracts sustainability-conscious tenants. It also helps meet municipal transportation and sustainability goals, making developments more future-proof and appealing to city planners.

Research & Resources

We’re committed to empowering cities, operators, and individuals with the knowledge and tools they need to succeed in the carsharing space. We offer a wide range of free resources, including industry reports, best practice guides, case studies, and toolkits, to help stakeholders navigate the evolving landscape of shared mobility. Whether you’re launching a new service, optimizing an existing one, or advocating for carsharing-friendly policies, our resources provide valuable insights to support your journey.

Members' Roundtable Service

Sometimes you just need a sounding board. Other times, you need strategic feedback. Our Collective Advisory sessions bring together experienced members, subject matter experts, and community voices to help you make confident decisions — without hiring a high-cost consultant.

Whether you’re launching a new mobility service, planning a policy shift, or troubleshooting user adoption, we’ll gather the right people in one virtual room to focus on your question or challenge.

Carsharing Association