Carsharing in Hangzhou, China

China is experiencing rapid motorization at an unprecedented rate. Carsharing began in China in 2009. As of June 2014, there are five active carsharing operators running about 1,000 vehicles in total in Beijing, Shenzhen, Shanghai, Hangzhou, Wuhan, and Changsha. However, little information exists concerning carsharing’s market potential, operation model, or its social and environmental impacts in Chinese cities.

This report presents a focus group study on an existing two-way carsharing model in Hangzhou, China conducted in October 2012. We invited 48 young working professionals to the focus group, including 12 existing carsharing members and 36 non-members between the ages of 20 and 40. The focus group explored market interest, service requirements, barriers and opportunities, and potential impacts of the two-way carsharing model from the demand side of the market. This report describes the methodology as well as the initial findings.

Our key findings include:

Significant market interest among young working professionals in Hangzhou:

•                34 out of 36 non-member participants showed interest in trying the service; 48% of participants would use carsharing at least three times a month; non-car owners and people with lower median incomes were likely to use the service more frequently than others.

•                There was significant interest in using carsharing for leisure trips, and some interest in occasional business trips and weekend hometown visits; interest in shopping trips seemed to be limited.

 

Carsharing’s barriers and opportunities from the users’ perspectives:

•                Aspirations for vehicle ownership might be a barrier, as one-third of participants recognized the status value of personal cars.

•                Vehicle travel restrictions and limited parking spaces might create more opportunities for carsharing in Hangzhou, as they both increase the cost of owning a personal vehicle.

•                Interest in carsharing is positively associated with the level of service of public transportation.

 

Users’ suggestions for carsharing program design:

•                Situate carsharing stations within a 10-minute walk from places of residence or employment, and integrate the stations with community parking programs and/or other transportation infrastructure such as bus stops and bikesharing stations.

•                Offer a diverse fleet of vehicles. Carsharing fleets with economical and/or electric vehicles were acceptable to most participants due to their affordable price and low gasoline costs. There was also a noticeable interest in luxury cars.

•                Participants considered current pricing structures that combine an hourly rental rate and distance-based gasoline fee to be reasonable, though some participants are very price-sensitive, especially to the distance-based fee.

•                Most participants wanted carsharing to operate like one-way station-based bikesharing programs in the city.

Foreseeable positive impacts on household vehicle holding

•                23 out of 48 participants would consider delaying or forgoing their vehicle purchase plans if carsharing services were conveniently available in their neighborhoods.

•                Among the 16 people who regard cars as a symbol of social status, 8 would delay or forgo their car purchase plans due to the availability of carsharing program.

This case study is an early attempt to understand market interest, users’ service requirements, and the  social and environmental impacts of carsharing in a typical second-tier Chinese city. The results may serve as a basis for future research in this rapidly-evolving field, especially with regard to social and environmental impacts, operational model modification, and relevant governmental policies.

This publication comprises one part of the “Carsharing in Emerging Economies” research project. The other forthcoming publications include a global report and a focus group case study in Bangalore, India.