1. The ability to securely integrate carsharing into the long-term Austin transportation model.

A non-profit is the one entity that can ensure the stability and continuity required for a successful long-term program in a smaller metro area such as Austin.

Flexcar and Zipcar have recently received large influxes of venture capital to expand services in the largest US metropolitan areas. It is still unclear whether these for-profits can generate venture capital returns when they enter the smaller metro markets, especially those without large scale dense development and extensive public transit infrastructure.

Then there is the question of to whom these investors will sell their interests in these companies once their investment has matured. This is of special importance to the Austin community culture. We do not want a carshare service that will go out of business due to ill-conceived expansion plans, or see services bought out by a third party and changed into something that doesn’t fit our community.

The non-profit structure obviously allows applications for government and foundation grants, but it also allows tax-deductable contributions from corporate and individual donors that support Austin's unique national reputation as an innovative city. The non-profit structure would also position Austin Carshare as an entity that can joint venture with government, education, and corporate partners to test new energy and transportation technologies, joint marketing efforts, experimental land development concepts, and so forth. This is of special value in situations where non-profit granting agencies encourage matching financial or in-kind proposals.

The non-profit model supports a range of community success measurements in addition to financial sustainability. For example, carsharing can be integrated into a larger move to improve development, lower emissions, reduce traffic, and improve the local economy. Instead of trying to get people to drive our cars as much as possible as the for-profits do, AustinCarshare can help people drive less and use carsharing to improve our quality of life.

For profit start-ups must have a single mission: to create a fee model that will return the highest possible profits to their investors beyond the basic service costs. Because a non-profit need only be sustainable, we can set our prices to support actual organizational expenses, not the maximum the market will tolerate. This consumer affordability means we can serve more of the consumer population and be more cost effective for business and governmental clients.

All the revenues generated by Austin Carshare will stay in Austin. Instead of supporting the salaries, operating expenses, profits, and multi-state growth strategy of an out of state company, Austin Carshare will employ Austin workers and reinvest in the local economy with service for Austin.