Monday 4 March 2013

Superteam A - Car2Go: Shifting Car-Sharing into High Gear




Introduction:
Car-sharing allows users to use vehicles on a pay-as-you–go basis, at a fraction of the cost of owning a car.  Several companies use car-sharing models and each have different methods of setting up their grid systems [1].  Thus, this blog we focus on Car2Go because it is the North American car-sharing market leader [2]. 

Car2Go& Its Benefits
Cars2Go is a car-sharing program piloted by Daimler in Texas.  The program has now  expanded to Calgary and fifteen other cities worldwide[3].  Daimler uses Smart FourTwos in specific operating areas to create a car-sharing community and a car “ownership” experience.  This adds value to customers who cannot afford their own vehicle.  It also acts as a substitute for car rentals and company cars.  Furthermore, car-sharing technology produces a social benefit by reducing the negative environmental impact of transportation in dense urban areas.   

Cost
Users pay a one-time $35 membership fee to use the vehicles [4].  Driving the vehicles costs 35 cents per minute.  This price includes fuel, parking, maintenance and insurance.  Thus, Cars2Go operates in dense urban centers, which are characterized by dense populations and high traffic areas, adding value to the company’s product offerings[5]. 

How it Works:
Vehicles can operate anywhere, but sessions must be started and terminated in the geofence (an area with a Wifi-grid compatible with the Car2Go App and aftermarket apps such as Getjar[6]).  To reduce the variable costs of bringing cars outside of the downtown core, Dalimer, using Wi-Fi node-on-node technology, created this geofence[7] to act as a barrier past which Wifi technology does not connect (See Figure 1). Although neither the Apps nor the website are calibrated to show vehicles past the geofence, an internal GPS in the car transmits information to Car2Go headquarters.  This ensures Daimler can recover vehicles that are left outside of the grid, or help those who are in need of roadside assistance [8].  The node-on -node technology allows information to be sent quickly throughout the geofence until it can be collected and organized at a central hub.  Furthermore, this Wifi method is efficient in that it prevents the network from collapsing if a node goes down.  “Terminal” nodes close off the operating areas and create a hub within which transactions and vehicular data can be sent and received by the database.  This ensures vehicles are located in close proximity to each other and are readily available to users.  In Calgary, this operating area has a geofence of 93 square kilometers[9].


Figure 1: Vancouver’s “Geofence”. 













[10]




The Car-Sharing Process:
Once you locate a car through the App, one must engage in a three-step process to start the car-sharing experience. Firstly, users put their membership card on the windshield to unlock the vehicle. Secondly, they must input their pin on the touch screen located on the dashboard (See figure 2).  Lastly, users must answer specific questions about the vehicle condition before they may drive [11].  After the three-step process, a payment gateway will open up through the WiFi system to allow for a payment process to begin, which will automatically debit the transaction from the user’s credit card after exiting the vehicle[12].  At the end of the user's trip, they sign out and rate the car.  In addition, the car number, transaction information, user information and ratings are transferred to a data mart.  Other information (ratings, user comments) are sent to the App, which starts this process over again. The information also lets the office know when a vehicle needs attention (ergo the small operating area to ensure efficiency)[11].


Figure 2: Car2Go Touch Screen Technology
[7]

Users of this technology can locate cars through third-party applications for Android and Iphone Apps.  Advanced telematics allow cars to be tracked (the car's location will be available to other users when the current drivers finish with it). These applications use MEO satellites and GPS technology to locate the placement of vehicles[13].  The vehicles locations are then kept in databases and their information inputted into the Apps, allowing members to locate and use the cars.  When the user finds a vehicle on the GPS, he or she may commence only after the three-step process[14].  Through WiFi, the client number is checked in the database to ensure that the client's pin matches the membership card[15].  

[16]



For the Program to Work:
Daimler must purchase a fleet of Smart FourTwos (usually 300 for major cities), which act as their inputs. Daimler also sets up parking garages, which include maintenance bays.  Daimler holds excess cars in their garages until they are needed at peak hours. When a poor rating is received, Daimler brings the FourTwo to the bays[11].  In addition, Daimler sets up charging stations (Figure 3) around the operating core to ensure users can charge the vehicles should they run out of electricity mid-session.  Furthermore, Car2Go creates a geofence[7]/ operating area in which they can connect their vehicles to allow for wireless transmission of data. The cars must be connected to a central database, and one must calibrate these cars to allow for mobile transmission of information that can be inputted into their App[11]. To do this, Daimler first sets up a wireless grid system using a node-on-node network in each city in which it operates. Each of the vehicles is connected wirelessly to a main hub that is attached to the company’s database. The company must code software in order to offer Apps for both Android and Apple phones[11]. Finally, Cars2Go must create a TPS that creates a payment gateway for members to connect their accounts to vehicle transactions, and to allocate transactions to members. The TPS should thus work in conjunction with the wireless grids and communicate with the client database.


Figure 3: Charging Station
[7]

Conclusion:
 


With its ubiquitous nature in North America, Car2Go is becoming a revolution.  Its strong execution of IT through its Geofence and Apps ensure that Car2Go will continue to accelerate into the market leader position in the car-sharing industry. 


For more information on car-sharing technology, check out our Podcast. http://misa03.podbean.com/2013/03/04/superteam-a-car2go/ 



References: Blog

[1] Kevin@Autoshare.com, . Car Sharing Canada, "Car Sharing." Last modified 2011.      Accessed March 3, 2013. http://www.carsharing.ca/.

[2] VLASIC, . NY Times, "Car-Sharing Services Grow, and Expand Options." Last modified 2013. Accessed March 4, 2013. http://www.nytimes.com/2013/01/26/business/car-sharing-services-grow-and-expand-options.html?_r=2&.

[3] Daimler, "Annual Report 2011."(2012):12-13, https://www.daimler.com/Projects/c2c/channel/
                  documents/2125319_Daimler_2011_Annual_Report.pdf.

[4] Daimler. Daimler, "Car2Go." Last modified 2013. Accessed February 26, 2013. http://www.daimler.com/technology-and-innovation/mobility-concepts/car2go.


[6] Jino, . Appsolutely Everything, "Getjar." Last modified 2013. Accessed March 4, 2013. http://www.getjar.com/cartajino.

[7] Blanco. Green Autoblog, "Daimler's Car2Go program is simple, amazing, but not perfect." Last modified 2011. Accessed February 26, 2013. http://green.autoblog.com/2011/03/24/daimler-car2go-program-carsharing-smart-fortwo/.
[8]  Friesen, (Phone Interview with Car2Go Call Center), interview by Mike Wilson, "Car2Go ," February 15, 2013.

[9] LeSage, . Green Autoblog, "Calgary fastest growing market for Car2go carsharing." Last modified 2012. Accessed February 26, 2013. http://green.autoblog.com/2012/10/04/calgary-fastest-growing-market-for-car2go-carsharing/.

[10] Collins, Jack. "Smart Electric and Car2Go Potential." EV News Report (blog), January 31, 2013.                     http://evnewsreport.com/tag/car2go/ (accessed February 26, 2013).

 [11] Daimler. Car2Go, "How Does Car2Go work." Last modified 2013. Accessed February 26, 2013. https://www.car2go.com/en/austin/how-does-car2go-work/

[12] Kronbauer, . Vancouver is Awesome Media Site, "Car2Go Expands to North Vancouver." Last modified 2013. Accessed March 3, 2013. http://vancouverisawesome.com/2013/02/19/car2go-expands-to-north-vancouver/.

[13] Rees, Stephen. "Car Sharing." Stephen Rees's Blog (blog), January 11, 2013. Accessed February 26, 2013. http://stephenrees.wordpress.com/category/car-sharing/

[14] Gunther, . Mother Nature Network, "Daimler launches all-electric Car2Go carshare service ." Last modified 2011. Accessed February 26, 2013. http://www.mnn.com/green-tech/transportation/blogs/daimler-launches-all-electric-car2go-carshare-service.

[15] Car2Love, . Car2Go, "Knowledge Base." Last modified 2013. Accessed March 4, 2013. http://www.car2love.com/kb.

[16] Car2Go., "Car2Go Video Tutorial," February 26 2011, compact disc, http://www.youtube.com/watch?v=vEmYbjFNekU.




References: Podcast
Burns, . Vancouver Magazine, "Vancouver's Best Car Sharing Company." Last modified 2012. Accessed March 2, 2013. http://www.vanmag.com/News_and_Features/Vancouvers_Best_Car_Sharing_Company.

Blanco. Green Autoblog, "Daimler's Car2Go program is simple, amazing, but not perfect." Last modified 2011. Accessed February 26, 2013. http://green.autoblog.com/2011/03/24/daimler-car2go-program-carsharing-smart-fortwo/.


Collins, Jack. "Smart Electric and Car2Go Potential." EV News Report (blog), January 31, 2013.                     http://evnewsreport.com/tag/car2go/ (accessed February 26, 2013).






Daimler, . Daimler, "Car2Go Technology and Innovation." Last modified 2013. Accessed March 2, 2013. http://www.daimler.com/technology-and-innovation/mobility-concepts/car2go.


Modo, "Calculating Modo." Last modified 2013. Accessed March 2, 2013. http://www.modo.coop/calculator/owning.


Modo, "Modo: The Car Company." Last modified 2013. Accessed March 2, 2013. http://www.modo.coop/what/carsharing.


VLASIC, . NY Times, "Car-Sharing Services Grow, and Expand Options." Last modified 2013. Accessed March 4, 2013. http://www.nytimes.com/2013/01/26/business/car-sharing-services-grow-and-expand-options.html?_r=2&.


Youtube, "Your Check Engine Light is On." Last modified 2010. Accessed March 2, 2013. http://www.youtube.com/watch?v=KMhp2ShPVQw.


The following 2 items were used to calculate the margin on an individual car.

Toyota, . Toyota, "Welcome to Toyota." Last modified 2013. Accessed March 2, 2013. http://www.toyota.com/corolla/


Auto trader, . Autotrader, "Victoria." Last modified 2013. Accessed March 2, 2013. http://www.autotrader.ca/a/Toyota/Corolla/VICTORIA/British Columbia/5_15709391_BS200541292544/?ursrc=pl&showcpo=ShowCPO

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