Subscribe to Print Edition | Fri., September 05, 2008 Elul 5, 5768 | | Israel Time: 02:52 (EST+7)
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A car for NIS 19 an hour
By Yoav Kaveh
Tags: Israel

It's a problem in Tel Aviv. Finally, you found a parking space that isn't halfway across the city from your home, so you don't want to give it up under any circumstances. If you must go somewhere you'd rather leave the car snug in its parking space and take your bicycle or even a cab.

Car use in Tel Aviv is akin to that in Western Europe and boasts one of the highest rates in Israel: more than 600 cars per 1,000 residents. The thing is, most of the cars aren't in use most of the day. They're sitting there taking up a precious parking space.

The calculation is simple: The average car in Israel is driven 17,000 kilometers annually (the average in Tel Aviv is less), and the average speed is 35 km/hr. So the average car drives 378 hours a year, or one hour and three minutes a day. The rest of the time they just sit there, taking up space.
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The obvious solution is to get rid of private cars. That isn't a terribly popular idea. What's the solution if you need to get to dinner at grandma's in Pardes Hannah, or buy a new closet at Ikea?

This is where a new company called Car2Go comes into the picture. Next week it will be launching a new program to the parking-deprived Holy Land: CarShare. Which means, sharing of cars, in case you hadn't guessed - a car rental service by the hour.

Unlike regular rental agencies, CarShare cars are scattered throughout the city and can be picked up and returned by self-service at any time.

The idea of CarShare sprang up in Europe in the 1970s. At first the programs were nonprofit social initiatives, and most did not survive. Commercial companies entered the picture in the 1990s and the CarShare initiative gained momentum.

The system now operates in 18 countries around the world, serving 400,000 users. The leading companies in the field are ZipCar and U.S.-based FlexCar, which merged in October 2007 into a company with 3,500 vehicles and more than 100,000 users. Many such companies are operating in Europe.

One of the leaders, the Swiss company Mobility, has 2,000 cars and 70,000 users. The mayor of Paris has initiated the operation of a fleet of 2,000 electric vehicles to be rented on a CarShare basis starting in 2009, on the heels of the successful VELIB project, which rents bicycles throughout the city.

Professor Robert Cervero of the University of California at Berkley says 30% of all households that use CarShare services regularly have sold their cars. It's an ideal plan for anybody who doesn't need a car for a daily commute to work, and for those who travel less than 10,000 km a year.

Because the cost of CarShare is calculated by the hour, there is a strong incentive for users to drive as little as possible by car, and thus, indirectly, reduce air pollution and road traffic. This is in stark contrast to the use of a private car, or worse still, a leased company car, where most or even all costs of use are set, providing no incentive to economize on car travel.

Members only

Behind the Car2Go initiative in Israel is the car rental agency Sun Car, with a fleet of about 1,000 vehicles, which is owned by Eli Gadish and three young entrepreneurs. His son, Yonatan Gadish, 29, is described as the CEO and director of business development of Car2Go, while Noam Margalit, a serial entrepreneur and partner to a number of Tel Aviv's hotspots, is Car2Go's director of operations and sales. Ben Ninio has been chosen to be the director of marketing and customer service.

How will Car2Go operate in Tel Aviv? The idea is to start with 10 cars owned by Sun Car - a Chevrolet, a Hyundai Getz and other models. The cars will be offered for rent in several ways; for example, the City option, costing NIS 19 per hour plus NIS 1.90 per kilometer, and the Freedom option, costing NIS 39 per hour plus NIS 1.90 per kilometer after the first 100 kilometers. Or the customer may choose to rent a car for the whole day for NIS 139 plus NIS 1.9 per kilometer, or rent a car for the day for NIS 269 including the first 100 kilometers.

This isn't a system for people to use to drive to work. It's more suitable for special journeys - a mid-morning meeting, a wedding in the evening.

Not just anybody can waltz in off the street and drive off. Car2Go is available to members only, who register in advance. The idea is to filter out people who could abuse the system or damage the cars. Another purpose is to drum up buzz among young people, a major target population for the venture. Not too young, though - the service isn't available for anybody under 23 or with less than three years of experience behind the wheel.

Ordering the car will be carried out through the Car2Go Web site, www.car2go.co.il, or by phone. The user can see the deployment of the cars throughout Tel Aviv online and reserve a car for a defined range of time. When it's time, the user goes to the car and appends his magnetic membership card to its front windshield. A sensor installed in the vehicle identifies the card and unlocks the door.

Meanwhile, the Car2Go computer system sends a text message with an ignition code to the user's cellphone. A key is hidden inside the car - all that remains is to locate it, turn on the car and drive off.

At the end of the journey, the user has to return the car to the parking lot where he picked it up. That way, Car2Go hopes to maintain a fixed dispersal of the fleet.

"I don't believe this will bother users," says Gadish. "In any case most of them return home at the end of the working day."

Failing to return the car on time will trigger a fine, but returning it ahead of time will give the user credit. But what about vandalism among the clientele?

Margalit: "We're building a client base that's a customer club. The cars are supposed to be constantly clean and smell good. If a client comes across a car in any other condition, he calls and we handle it. Also, we'll have a patrol constantly monitoring the cars."

The payment for use includes gasoline and insurance. All the cars come equipped with automatic fueling technology (dalkan). In the event of an accident, the driver has to pay part of the cost, if any.

So far the Car2Go entrepreneurs have invested $150,000 of their own money in the project, they say. "Our goal is to reach a fleet of 60 cars and 1,000 active users by the end of 2008," says Gadish.

"Within five years we want to reach 1,000 cars and 27,000 users. In the longer run we want to reach other cities in Israel, such as Haifa and Jerusalem, and later to expand abroad - to Greece, Turkey and Eastern Europe too, where the model doesn't exist."

The challenge and perhaps the obstacle in Tel Aviv is parking. To maintain a fleet, you have to have places to put the cars in the city center. But parking in central Tel Aviv is rare and expensive.

"We've talked with the municipality and with the Ahuzot Hahof company, which runs a lot of parking lots, and received their official sanction. We believe the city will be persuaded to support the program because of the reduction in air pollution and congestion, and will let us use parking spaces for free," says Gadish.

"At the moment we have 40 parking spaces reserved in strategic spots in the city center." Elsewhere in the world city councils have cooperated with similar ventures and provided free parking.
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