Environmental Analysis Car2go

Topics: Carsharing, Electric vehicle, Automobile Pages: 5 (1128 words) Published: March 22, 2015


Environmental Analysis for Car2Go

I. Introduction
This project has been conducted to do an environmental analysis to the company called Car2go and its membership/sign-up product in Vancouver. The analysis has been done using all the external forces that involves collecting facts about the company through primary and secondary research. The external forces has been divided into 6 categories namely Demographic, Socio-Cultural, Competitive, Technological, Economic, and Regulatory. It is then explain how each of the environmental factors could positively or negatively influence the sign-up for membership of Car2go in Vancouver. II. Company Description

Daimler AG pioneered the service of providing easy access of two-seat cars rented on hourly or daily basis with pre-paid street parking and fuel in Ulm, Germany in October, 2008. Since then, the company developed Car2Go car sharing services in Europe and North America. With 7,000 vehicles serving 18 cities, Car2Go has served 350,000 customers since its inception. It launched in Vancouver in June 2011 with 250 cars. Car2go has a current fleet of 450 cars with both gasoline and electric type serving in Vancouver downtown, Vancouver West and North Vancouver. Car2Go renters book the compact car online with phone APPs, access the car and park it at designated places for free. Car2Go advertises as “a new form of mobility for more dynamic way to get around”, promising flexible, convenient and affordable transport solution offering inclusion of gas, parking and insurance cost. III. Environmental Scan

A. External Forces
1. Demographic
-The focus of the market segments in this topic is two. First is the tourist market and second are the people who are ages 30 years old and older who don’t need a car on a regular basis. Vancouver is one of the hot spots for tourist especially when it comes with nature attraction. However, tourism in Vancouver has been declining since the recession. This will have a negative impact in the market of car2go. On the other hand, Canada has an aging population which gives them more people to market. This will help increase their membership sign up for their business.

2. Socio-Cultural
- Cycling is the fastest growing method of travel in Vancouver with the fastest growing segments are women and baby boomers hitting retirement. This trend shows that people are more environmental friendly by riding a bike than a car as a means of transportation. But that doesn’t mean that they don’t need a car anymore. They still need it for longer trips or doing errands like grocery shopping. This means people will more likely to sign up more for businesses like car2go because they would rather rent a car than to buy one.

3. Competitive
-As Car2Go offers 2-seater SMART car only, its competitor, ZipCar offers 30 different kinds of cars with gas, insurance and mileage included and cars conveniently parked in many locations for access. ZipCar operates in similar ways like Car2Go: membership, online reservation, drive and park. In Greater Vancouver, ZipCar is accessible in North shore, downtown, Vancouver East, Vancouver West and Burnaby. While both ZipCar and Car2Go rentals cover a 200 km mileage, Car2Go charges a one-time membership registration fee of $35.00 offers options of charging at $0.38 per minute, hour, a $13.99 hourly rate or a maximum daily rate of $72.99. Perks of Car2Go include 20 free minutes for renters who take the time to fill up the gas tanks in pre-paid gas stations. On the other hand, Zipcar charges more for joining fee, at a rate of $75.00 and a $30.00 annual fee of each driver. Zipcar charges hourly rates on week days, 7-7 business hours and full day of $64.00. While Zipcar offers many types of cars, from small compact to vans, it also targets university students to reduce the hassle for on-campus parking. Hence, while Car2Go appeals mostly business owners and downtown office employees, Zipcar targets a...

Bibliography: Ingram, A. (2013). Hybrid car sales soar 40%, study says. The Christian science monitor.
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Scoffield, H. (2012). Canada census:population aging quickly but toddlers on rise.
Hoffpost living. Retrieved on May 5, 2013. http://www.huffingtonpost.ca/2012/05/29/canada-aging-population
http://vancouver.ca/green-vancouver/greenest-city-2020-action-plan.aspx
http://www.bcstats.gov.bc.ca/StatisticsBySubject/BusinessIndustry/Tourism.aspx
http://www.biketoworkmetrovan.ca/node/665
https://www.car2go.com/en/vancouver/
http://www.workbc.ca/Statistics/BC-Economy/Pages/BC-Economy.aspx
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