November 4, 2024

Cost benefit analysis of Car2Go

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At first glance, one might think clowns have taken over Columbus.

Tiny cars have invaded the streets. Their laughably puny exterior may seem ridiculous, but their contribution to the environment is undeniable given the growing company’s impressive figures.

At first, I thought it must have been a temporary gimmick, but the car2go’s expansion to Bexley has proven they are here to stay.

But, what is the benefit of using a car2go versus owning your own car? They say sharing is caring, but if sharing costs more, than what is the point, other than the joy of zipping around in a tiny smart car? First, let’s explore where car2go came from and how it works.

Car2go is a company that began in Ulm, Germany in 2008. As of January 2014, car2go operates over 12,000 vehicles, which serve eight countries and 30 cities worldwide with over 900,000 customers.

To get a car2go, you need to pass their background check, so if you’ve had a DUI recently, the Central Ohio Transit Authority (COTA) might be your best option. Once you are approved, they mail you a membership card that works as a key to gain entrance into the car. Car2go offers an app that helps you locate cars in your area. In my experience, there is seldom one closer than half a mile away, so be prepared to walk. Additionally, the app lets you reserve a car, in case you have a hot date you can’t miss and are afraid of some jerk snatching your ride.

After you located a car that is not reserved, simply swipe your card over the windshield, and voila, the doors will unlock. Once inside, you input your passcode into an electronic display screen, a preventative measure to keep thieves from cruising on your dollar, which then unlocks the key from the console. Also, the tablet will ask you to rate the aesthetic interior and exterior of the car2go, so you are not liable for the idiot who left a giant ranch dressing stain on the car’s interior.

When the car2go is low on gas, it sends a message to a representative who finds the car, fills it up, and drops it off in a designated location. No more standing at the pump like a chump. Another benefit is that car2go pays money to the city so you can park it at any meter for free. Pretty nifty, huh?

So let’s break down the car-sharing phenomenon by cost.

As soon as you start the engine, car2go charges 41 cents per minute to your account. This fee includes gas, insurance, parking, and maintenance of the car. This price doesn’t seem like much, but can add up if in heavy traffic. Let’s say your commute to work is 15 minutes each way. Rounding up, that adds to $12 round trip. This is considerably less than a taxi, but, as you can see, can become costly if you are not careful.

So, let’s compare this cost to actually owning and driving your own car. The variable in cost of owning can be tricky, especially when comparing it to the cost of having a car2go, but we will break it down in simple terms and compare the cost to the number of hours you can use a car2go per month.

The typical cost of owning your own car per month is as follows:
• Car payment – $200
• Gas – $100
• Insurance – $60
• Maintenance & repairs – $50
• Meter parking – $10

So, adding up all of these costs, a standard car owner spends roughly $420 per month. This amount of cash equals about 18 hours of car2go time per month. If you don’t make car payments, the time would decrease to roughly 10 hours a month. So when making a cost benefit analysis for yourself, you need to add up the time you spend in the car every month and see if it is less than the above figures.

For example, if you only spend 13 hours in your car per month, and you make car payments, you could be saving about $117 per month. Not a bad chunk of cash that could be spent on better things, like textbooks or a keg of quality craft beer. However, if you spend this amount of time in a car per month and you don’t make payments, you could be losing money.

Now that car2go has stretched its reach to Bexley, Capital students are taking advantage of its convenience. If anything, it can be an easy way to get to the airport or to drive to a bar so you can drunkenly stumble home without having to worry about where you parked your ride. So, if you see a car2go zipping by, wave, and be grateful of the bizarre, tiny car future in which we are living.

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