Sponsored by Oregon Business

Peer-to-peer vehicle sharing arrives

| Print |  Email
Linda Baker
Wednesday, December 21, 2011

BY LINDA BAKER

Our 1996 Volvo Sedan isn’t pretty.  Fossilized imprints of peanut butter and other assorted sandwiches dot the floor, while the seat cushions are so worn down, passengers risk inhaling bits of foam on every trip.

Things have languished thus for a while. But after talking to John Atcheson, vice president of Getaround, the San Francisco-based “peer-to-peer” carsharing startup, I’m thinking it might be time to spruce up ye olde family auto.

In February, with the help of a $1.7 million federal grant, Getaround will debut personal car sharing in Portland. The service will allow everyday vehicle owners to rent out their cars—to friends, neighbors or complete strangers. To facilitate the new business model, Gov. John Kitzhaber signed a bill last summer changing insurance rules so that auto owners can charge people for using their cars without being held liable for accidents.

Most personal vehicles are parked about 90 percent of the time and an increasing number of city residents are abandoning car ownership. Leveraging information technology and social media, Getaround connects the people with underused cars with the renters needing a car.  The company is also one of a growing number of businesses targeting  “collaborative consumption” — sharing, trading or renting access to a product as opposed to individual ownership. 

“The idea that everyone has to own their own thing, whether it’s a lawn mower or custom processing equipment — all these things are just waiting for exploitation by business,” says Atcheson. Companies can either facilitate collaborative consumption or take “idle assets of any kind and put those assets into the market,” he says.

Getaround, which a few months ago raised $3.4 million from investors such as Redpoint Ventures and TechCrunch founder Michael Arrington, is in the facilitating business. The company supports personal car sharing by “making entrepreneurs out of every car owner,” says Atcheson. Since the company launched in several cities last spring, about 6,000 registered car owners have signed up for the service, mostly in the San Francisco Bay Area. 
Getaround_App_-_Car_Profile_2
A quick look at the Getaround website, where renters and vehicle owners meet, reveals a Prius going for $7.50 an hour, a Honda Accord for $7 and a BMW for $15. According to Atcheson, top earners are making $1,000 a month; the average is $300.

In Atcheson’s view, Getaround’s competition isn’t so much traditional car sharing companies such as Zipcar as “the prevailing mindset” that a car represents personal identity or freedom. The people who are most successful at personal car sharing have abandoned that attitude, and instead “view their cars potentially as a business operation,"he says.

That kind of logic fuels existing collaborative consumption models--craigslist and eBay in particular. Next generation companies such as Getaround go one step further, and suggest an intriguing reset regarding the relationship between consumption and business growth; by reducing the number of products in circulation, opportunities to generate income from those products actually increase. 

As for me, the idea that someone might extract use value from our Volvo is intriguing indeed. Getaround boasts a sophisticated fraud detection and rating system that alerts renters to the condition of the car, Atcheson cautions.  Rule No. 1: “You have to keep the car clean,” he says.

Linda Baker is managing editor of Oregon Business.

 

Comments   

 
Emilie
0 #1 Another Great P2P CompanyEmilie 2012-01-01 15:43:27
Great article! Collaborative consumption is such a win-win for all involved. Renters save money and owners make money, plus the environment wins as well. I work for a startup Fun2Rent.com, which connects owners and renters of powersports and recreational vehicles. The peer-to-peer rental industry is growing so quickly. Now, you can not only rent a car, but an ATV, jet ski, or snowmobile!
Quote | Report to administrator
 

More Articles

On the Road

April 2015
Friday, March 27, 2015
BY LINDA BAKER

My daughter turned 18 last week, and for her birthday I got her a Car2Go membership. Not to label myself a disruptor or anything, but it felt like a groundbreaking moment. The two of us, mother and child, were participating in a new teen rite of passage: Instead of handing over the car keys, I handed over a car-sharing card — with the caveat that she not use the gift as her own personal car service.


Read more...

Opening soon: 3 of the coolest new breweries in Oregon

The Latest
Thursday, March 19, 2015
brewthumbBY JACOB PALMER | DIGITAL NEWS EDITOR

There are 278 companies licensed to operate as brewery, according to the Oregon Liquor Control Commission. Here are three new beer-making hubs slated to open soon.


Read more...

Are wolves good for business?

Contributed Blogs
Friday, March 06, 2015
030615-wolf-thumbBY JEFF DELKIN | OP-ED CONTRIBUTOR

As a local business owner, I believe it’s important to build our economy on a platform of conservation values.  


Read more...

Cache and Curry

March 2015
Monday, February 23, 2015
BY JACOB PALMER | OB DIGITAL NEWS EDITOR

Power Lunch at Swagat in Hillsboro.


Read more...

Meeting Facilities Perspective

March 2015
Tuesday, February 24, 2015
BY KIM MOORE | OB RESEARCH EDITOR

A conversation with Donna Earley, director of sales and marketing for the Salem Convention Center.


Read more...

10 Twitter highlights from #OR100Best

The Latest
Friday, February 27, 2015
100bestBY OB STAFF

Oregon Business held its  22nd annual 100 Best Companies to Work For in Oregon celebration Thursday night in the Oregon Convention Center.


Read more...

Umbrella Revolution

March 2015
Monday, February 23, 2015

Yeah, we know: Oregonians are way too cool for umbrellas. But today’s stylish, high-tech models will soften the resistance of the most rain hardened.


Read more...
Oregon Business magazinetitle-sponsored-links-02
SPONSORED LINKS