Flexcar
Encyclopedia
Flexcar was a for-profit car sharing
company, the oldest and second-largest in the United States
behind Boston
-based Zipcar
, with which it merged in late 2007. This article discusses Flexcar's operations prior to the merger; most Flexcar operations were converted to Zipcar operations.
office was founded as a separate company (Car Sharing Portland) by David Brook; Flexcar itself was founded in January 2000 in Seattle, Washington
as a public-private partnership with King County Metro. Flexcar was also present in Los Angeles
; Gainesville
; San Diego
; Rochester
; Atlanta
; Pittsburgh
; Tempe, Arizona
(it served Phoenix
in partnership with Arizona State University
); San Jose
; San Francisco
; Philadelphia; Baltimore
; Washington, D.C.
and Columbus, Ohio
, and, to varying degrees, in their suburbs. In addition, Flexcar was partnered with the non-profit I-GO
carsharing service in Chicago.
Flexcar members chose a rate plan and paid an annual fee. The fees covered gasoline
, insurance, maintenance
, and cleaning. The vehicles were mostly late-model sedans, with other types, such as light truck
s, hybrids, convertibles, and minivan
s, also available. Each vehicle had a home location, a reserved space either in a parking lot
or on a street
, typically in a highly-populated urban neighborhood (as well as, in some markets, on college or university campuses). Members reserved a car by web
or telephone
and used a key card to access the vehicle. The reservation was required to specify the pick up and return time, so others could schedule the vehicle. Vehicles were returned to their home location.
The company targeted people who made only occasional use of a vehicle as well as people who wanted occasional access to a vehicle of a different type than they use day-to-day. Flexcar claimed that the service was economically beneficial to anyone whose car would normally be away from their home about 15 hours a week, and did not need a car for their daily commute to work.
In several of its cities, the company had formed a public-private partnership
with a local public transit entity. For example, in Seattle they were partnered with King County
Metro Transit, which operates the area's
bus
es. The company's advertising materials there said, "Ride Metro when you don't need a car. Use Flexcar when you do."
In 2003, Flexcar became the second company in the United States to become completely carbon neutral (the first company was Shaklee Corporation in 2001). By developing a partnership with American Forests
, Flexcar ensured that enough trees are planted every year to offset the exhaust from its fleet of shared vehicles.
In August 2005, Revolution LLC, the holding company owned by Steve Case
, founder of America Online, purchased a 60% holding interest in Flexcar. The company announced that this investment would lead to a rapid expansion of their operations.
In January 2007, Flexcar notified the member base of dramatic changes in the billing structure of their hourly rental. Doing away with their flat fee for set hour and unlimited mileage rates, they announced the formation of a "Variable Pricing" plan, which calculates cost on peak and non-peak hours with mileage limited to 150 miles per day. Members were notified on the organization's website and by letter that, "Variable pricing provides two benefits. Members with flexible schedules can now save money by reserving the car during its 'off-peak' time, in this case, on the weekend. Because some members will shift their trips to 'off-peak' times, the car’s availability should also improve during its 'peak' times as well."
On October 30, 2007, Flexcar executives announced a merger with car-sharing rival Zipcar
. The merger consolidated the operations of the two corporations. Executives from both companies, in the announcement of the merger, stated that the Flexcar headquarters in Seattle would be closed, possibly resulting in the loss of jobs as operations transferred to Zipcar's headquarters in Boston.http://seattletimes.nwsource.com/html/businesstechnology/2003984391_flexcar31.html.
and First Hill
.
The company had also started an initiative to convince Downtown Seattle employers to join their program as business members rather than maintaining their own car fleets. Other market segments included placing vehicles at transit stations to provide "last mile" connectivity between transit and suburban office locations and providing subsidized vehicle access as part of low-income "jobs access" programs.
The last statistics provided by Flexcar's website showed that the service in Portland has grown to include over 130 vehicles, including the Pearl District, Old Town Chinatown
; close-in eastside neighborhoods such as the Lloyd District, Hawthorne
, and Brooklyn
; and downtown Vancouver, Washington
.
Carsharing
Car sharing or Carsharing is a model of car rental where people rent cars for short periods of time, often by the hour. They are attractive to customers who make only occasional use of a vehicle, as well as others who would like occasional access to a vehicle of a different type than they use...
company, the oldest and second-largest in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
behind Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
-based Zipcar
Zipcar
Zipcar is an American membership-based car sharing company providing automobile reservations to its members, billable by the hour or day. Zipcar was founded in 2000 by Cambridge, Massachusetts residents Antje Danielson and Robin Chase, and is now led by Scott Griffith, Chairman and Chief Executive...
, with which it merged in late 2007. This article discusses Flexcar's operations prior to the merger; most Flexcar operations were converted to Zipcar operations.
Overview
Flexcar can date its origins to March 1998, when its Portland, OregonPortland, Oregon
Portland is a city located in the Pacific Northwest, near the confluence of the Willamette and Columbia rivers in the U.S. state of Oregon. As of the 2010 Census, it had a population of 583,776, making it the 29th most populous city in the United States...
office was founded as a separate company (Car Sharing Portland) by David Brook; Flexcar itself was founded in January 2000 in Seattle, Washington
Seattle, Washington
Seattle is the county seat of King County, Washington. With 608,660 residents as of the 2010 Census, Seattle is the largest city in the Northwestern United States. The Seattle metropolitan area of about 3.4 million inhabitants is the 15th largest metropolitan area in the country...
as a public-private partnership with King County Metro. Flexcar was also present in Los Angeles
Los Angeles, California
Los Angeles , with a population at the 2010 United States Census of 3,792,621, is the most populous city in California, USA and the second most populous in the United States, after New York City. It has an area of , and is located in Southern California...
; Gainesville
Gainesville, Florida
Gainesville is the largest city in, and the county seat of, Alachua County, Florida, United States as well as the principal city of the Gainesville, Florida Metropolitan Statistical Area . The preliminary 2010 Census population count for Gainesville is 124,354. Gainesville is home to the sixth...
; San Diego
San Diego, California
San Diego is the eighth-largest city in the United States and second-largest city in California. The city is located on the coast of the Pacific Ocean in Southern California, immediately adjacent to the Mexican border. The birthplace of California, San Diego is known for its mild year-round...
; Rochester
Rochester, New York
Rochester is a city in Monroe County, New York, south of Lake Ontario in the United States. Known as The World's Image Centre, it was also once known as The Flour City, and more recently as The Flower City...
; Atlanta
Atlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
; Pittsburgh
Pittsburgh, Pennsylvania
Pittsburgh is the second-largest city in the US Commonwealth of Pennsylvania and the county seat of Allegheny County. Regionally, it anchors the largest urban area of Appalachia and the Ohio River Valley, and nationally, it is the 22nd-largest urban area in the United States...
; Tempe, Arizona
Tempe, Arizona
Tempe is a city in Maricopa County, Arizona, USA, with the Census Bureau reporting a 2010 population of 161,719. The city is named after the Vale of Tempe in Greece. Tempe is located in the East Valley section of metropolitan Phoenix; it is bordered by Phoenix and Guadalupe on the west, Scottsdale...
(it served Phoenix
Phoenix, Arizona
Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data...
in partnership with Arizona State University
Arizona State University
Arizona State University is a public research university located in the Phoenix Metropolitan Area of the State of Arizona...
); San Jose
San Jose, California
San Jose is the third-largest city in California, the tenth-largest in the U.S., and the county seat of Santa Clara County which is located at the southern end of San Francisco Bay...
; San Francisco
San Francisco, California
San Francisco , officially the City and County of San Francisco, is the financial, cultural, and transportation center of the San Francisco Bay Area, a region of 7.15 million people which includes San Jose and Oakland...
; Philadelphia; Baltimore
Baltimore
Baltimore is the largest independent city in the United States and the largest city and cultural center of the US state of Maryland. The city is located in central Maryland along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. Baltimore is sometimes referred to as Baltimore...
; Washington, D.C.
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
and Columbus, Ohio
Columbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
, and, to varying degrees, in their suburbs. In addition, Flexcar was partnered with the non-profit I-GO
I-GO
I-GO is a Chicago-based not-for-profit car sharing organization.- Overview :I-GO is an independent 501 established in 2002 by the Center for Neighborhood Technology, a non-profit organization dedicated to creating and implementing new strategies that make urban communities more livable and...
carsharing service in Chicago.
Flexcar members chose a rate plan and paid an annual fee. The fees covered gasoline
Gasoline
Gasoline , or petrol , is a toxic, translucent, petroleum-derived liquid that is primarily used as a fuel in internal combustion engines. It consists mostly of organic compounds obtained by the fractional distillation of petroleum, enhanced with a variety of additives. Some gasolines also contain...
, insurance, maintenance
Maintenance, Repair and Operations
Maintenance, repair, and operations or maintenance, repair, and overhaul involves fixing any sort of mechanical or electrical device should it become out of order or broken...
, and cleaning. The vehicles were mostly late-model sedans, with other types, such as light truck
Light truck
Light truck or light duty truck is a U.S. classification for trucks or truck-based vehicles with a payload capacity of less than 4,000 pounds...
s, hybrids, convertibles, and minivan
Minivan
Minivan is a type of van designed for personal use. Minivans are typically either two-box or one box designs for maximum interior volume – and are taller than a sedan, hatchback, or a station wagon....
s, also available. Each vehicle had a home location, a reserved space either in a parking lot
Parking lot
A parking lot , also known as car lot, is a cleared area that is intended for parking vehicles. Usually, the term refers to a dedicated area that has been provided with a durable or semi-durable surface....
or on a street
Street
A street is a paved public thoroughfare in a built environment. It is a public parcel of land adjoining buildings in an urban context, on which people may freely assemble, interact, and move about. A street can be as simple as a level patch of dirt, but is more often paved with a hard, durable...
, typically in a highly-populated urban neighborhood (as well as, in some markets, on college or university campuses). Members reserved a car by web
World Wide Web
The World Wide Web is a system of interlinked hypertext documents accessed via the Internet...
or telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
and used a key card to access the vehicle. The reservation was required to specify the pick up and return time, so others could schedule the vehicle. Vehicles were returned to their home location.
The company targeted people who made only occasional use of a vehicle as well as people who wanted occasional access to a vehicle of a different type than they use day-to-day. Flexcar claimed that the service was economically beneficial to anyone whose car would normally be away from their home about 15 hours a week, and did not need a car for their daily commute to work.
In several of its cities, the company had formed a public-private partnership
Public-private partnership
Public–private partnership describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies...
with a local public transit entity. For example, in Seattle they were partnered with King County
King County, Washington
King County is a county located in the U.S. state of Washington. The population in the 2010 census was 1,931,249. King is the most populous county in Washington, and the 14th most populous in the United States....
Metro Transit, which operates the area's
Seattle metropolitan area
The Seattle metropolitan area in the US state of Washington includes the city of Seattle, King County, Snohomish County, and Pierce County within the Puget Sound region. The U.S...
bus
Bus
A bus is a road vehicle designed to carry passengers. Buses can have a capacity as high as 300 passengers. The most common type of bus is the single-decker bus, with larger loads carried by double-decker buses and articulated buses, and smaller loads carried by midibuses and minibuses; coaches are...
es. The company's advertising materials there said, "Ride Metro when you don't need a car. Use Flexcar when you do."
History
American Forests
American Forests is a 501 non-profit conservation organization dedicated to protecting and restoring healthy forest ecosystems. Their stated mission is to "grow a healthier world with trees". The organization was established in 1875 as the American Forestry Association by physician and...
, Flexcar ensured that enough trees are planted every year to offset the exhaust from its fleet of shared vehicles.
In August 2005, Revolution LLC, the holding company owned by Steve Case
Steve Case
Stephen McConnell "Steve" Case is an American businessman best known as the co-founder and former chief executive officer and chairman of America Online . Since his retirement as chairman of AOL Time Warner in 2003, he has gone on to build a variety of new businesses through his investment...
, founder of America Online, purchased a 60% holding interest in Flexcar. The company announced that this investment would lead to a rapid expansion of their operations.
In January 2007, Flexcar notified the member base of dramatic changes in the billing structure of their hourly rental. Doing away with their flat fee for set hour and unlimited mileage rates, they announced the formation of a "Variable Pricing" plan, which calculates cost on peak and non-peak hours with mileage limited to 150 miles per day. Members were notified on the organization's website and by letter that, "Variable pricing provides two benefits. Members with flexible schedules can now save money by reserving the car during its 'off-peak' time, in this case, on the weekend. Because some members will shift their trips to 'off-peak' times, the car’s availability should also improve during its 'peak' times as well."
On October 30, 2007, Flexcar executives announced a merger with car-sharing rival Zipcar
Zipcar
Zipcar is an American membership-based car sharing company providing automobile reservations to its members, billable by the hour or day. Zipcar was founded in 2000 by Cambridge, Massachusetts residents Antje Danielson and Robin Chase, and is now led by Scott Griffith, Chairman and Chief Executive...
. The merger consolidated the operations of the two corporations. Executives from both companies, in the announcement of the merger, stated that the Flexcar headquarters in Seattle would be closed, possibly resulting in the loss of jobs as operations transferred to Zipcar's headquarters in Boston.http://seattletimes.nwsource.com/html/businesstechnology/2003984391_flexcar31.html.
Seattle
Flexcar had 15,000 members in Seattle, about 2.5% of that city's population. It had proven popular among those who live in downtown Seattle or the nearby densely populated Capitol HillCapitol Hill, Seattle, Washington
Capitol Hill is the most densely populated residential district in Seattle, Washington, United States. It is the center of the city's gay and counterculture communities, and is one of the city's most prominent nightlife and entertainment districts....
and First Hill
First Hill, Seattle, Washington
First Hill is a neighborhood in Seattle, Washington, named for the hill on which it is located. The hill, in turn, is so named for being the first hill one encounters traveling east from downtown Seattle toward Lake Washington....
.
The company had also started an initiative to convince Downtown Seattle employers to join their program as business members rather than maintaining their own car fleets. Other market segments included placing vehicles at transit stations to provide "last mile" connectivity between transit and suburban office locations and providing subsidized vehicle access as part of low-income "jobs access" programs.
Portland
In April 2001, Flexcar became the first car-sharing company in the U.S. to expand to a second city by acquiring CarSharing Portland in Portland. At the time, Flexcar's customer base in Seattle included over 1300 members sharing 40 cars. Carsharing Portland, which began business in March 1998, had at the time of its acquisition over 500 members with 25 vehicles in and around downtown Portland.The last statistics provided by Flexcar's website showed that the service in Portland has grown to include over 130 vehicles, including the Pearl District, Old Town Chinatown
Old Town Chinatown, Portland, Oregon
Old Town Chinatown is a neighborhood in the Northwest section of Portland, Oregon. The Willamette River forms its eastern boundary, separating it from the Lloyd District and the Kerns and Buckman neighborhoods...
; close-in eastside neighborhoods such as the Lloyd District, Hawthorne
Hawthorne, Portland, Oregon
The Hawthorne District in Portland, Oregon is an area of Southeast Portland on SE Hawthorne Blvd., particularly between 30th and 42nd Avenues. The area has numerous retail stores, including clothing shops, restaurants, bars, brewpubs and microbreweries. Hawthorne district is known for its young,...
, and Brooklyn
Brooklyn, Portland, Oregon
Brooklyn is a mostly residential neighborhood in southeast Portland, Oregon. It sits along the east side of the Willamette River in the vicinity of Reed College...
; and downtown Vancouver, Washington
Vancouver, Washington
Vancouver is a city on the north bank of the Columbia River in the U.S. state of Washington. Incorporated in 1857, it is the fourth largest city in the state with a 2010 census population of 161,791 as of April 1, 2010...
.
See also
- CarsharingCarsharingCar sharing or Carsharing is a model of car rental where people rent cars for short periods of time, often by the hour. They are attractive to customers who make only occasional use of a vehicle, as well as others who would like occasional access to a vehicle of a different type than they use...
- ZipcarZipcarZipcar is an American membership-based car sharing company providing automobile reservations to its members, billable by the hour or day. Zipcar was founded in 2000 by Cambridge, Massachusetts residents Antje Danielson and Robin Chase, and is now led by Scott Griffith, Chairman and Chief Executive...
- Transportation in SeattleTransportation in SeattleAs with almost every other city in western North America, transportation in Seattle is dominated by automobiles, although Seattle is just old enough that the city's layout reflects the age when railways and streetcars dominated...
- Transportation in Portland, OregonTransportation in Portland, OregonLike transportation in the rest of the United States, the primary mode of local transportation in Portland, Oregon is the automobile. But Portland's reputation as a well-planned city is due to Metro's regional master plan in which transit-oriented development plays a major role...
- Transportation in Los AngelesTransportation of Los AngelesThe intercity transportation system in Los Angeles serves as a regional, national and international hub for passenger and freight traffic. The system includes the United States' largest port complex, an extensive freight and passenger rail infrastructure, numerous airports and an extensive highway...
- I-GOI-GOI-GO is a Chicago-based not-for-profit car sharing organization.- Overview :I-GO is an independent 501 established in 2002 by the Center for Neighborhood Technology, a non-profit organization dedicated to creating and implementing new strategies that make urban communities more livable and...