With national for-profit carshare companies showing interest in the Austin market, the question is why do we need a local non-profit providing carsharing services instead of these or other for-profits?

Why a non-profit model is the better choice for Austin

Community Orientation

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 promote compact and mixed-use development, reduce traffic congestion, lower emissions related to transportation, and boost the local economy. Instead of trying to get people to drive our cars as much as possible as the for-profits do, Austin Carshare can help people drive less and use carsharing to improve our quality of life.

Lower cost per user to build a larger and more diverse user base

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. With return on investment as a priority it is unlikely that a for-profit corporation will share our approach. Being affordable means we can serve more of the consumer population and be more cost effective for business and governmental clients.

Educational, Environmental, and Social Focus

Austin CarShare's mission is educational. We see ourselves as a change agent to improve our quality of life. As a non-profit we seek to educate the community about the true cost of depending solely on driving a car to get around. We seek to protect our air quality by reducing emissions and promoting sustainable economic development. We further seek to provide increased transportation options to those who need them most without the burdensome costs of car ownership.

Public and Private Partnerships

The non-profit model allows applications for government and foundation grants, but it also allows tax-deductible contributions from corporate and individual donors that support Austin’s unique national reputation as an innovative city. Austin CarShare can work together with government, education, and corporate partners to test new energy and transportation technologies, measure environmental impacts of experimental land development concepts, and reach out to provide more transportation options in low-income communities. This is of special value in situations where non-profit granting agencies encourage matching financial or in-kind contributions in their request for proposals.

Keeping Money in the Local Economy

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

Austin presents a unique challenge for Carsharing Organizations.

The optimal conditions for carsharing do not exist in Austin. In most cities where carsharing has been profitable there is high population density, extensive public transportation, high traffic congestion, difficult and expensive parking options, and land use patterns that support living, working, and shopping in the same neighborhood. As a non-profit organization Austin CarShare is willing to do the work to build grassroots support and membership for development and transportation options that will contribute to the environmental and economic benefits of having widespread carsharing, transit accessible and walkable neighborhoods in Austin. We can work together with Capital Metro and government entities to help keep Austin affordable and protect the quality of life we cherish.