The Solution: Mr. Peterson started Flex car in Seattle in 1999 with just five vehicles. His first step, which he has repeated in other cities, was to partner with local public-transportation boards, universities and businesses to help market his program. For instance, in some cities Flex car has made deals with transit officials that let the company offer its customers passes for public buses and trains. And some employers partially subsidize Flex car memberships as a perk for their employees. Mr. Peterson's marketing tried to position car sharing as liberating, offering slogans such as "Why buy wheels when you can borrow them?" Flex car’s ads also urge drivers to "Shift your thinking" about car ownership--don't look at a car as a status symbol but as a means of getting around. Don't even look at it as property, in fact; think of it more as a time-share vacation home. Car sharing "gives you a short-term relationship, kind of like getting a motel room instead of buying a house," says Michael Marsden, a professor at Eastern Kentucky University in Richmond, Ky., who teaches about American car culture. "We as Americans love our cars, but they certainly drain time and money, and this is an alternative to that." Mr. Peterson also pushed price. The average cost of owning or leasing a new car, including things such as gas, insurance, depreciation and the car payment itself, totals $625 a month, according to the American Automobile Association. The average member in a car-sharing program spends less than $100 a month on car expenses. Flex car members pay a one-time $25 membership fee. Someone needing a car only occasionally can pay as little as $10 an hour with 10 free miles, plus 35 cents each additional mile. Those needing the car more often can select from five monthly plans starting from $45, for up to five hours and 50 miles, to $725 for 100 hours and 1,000 miles. Members receive an electronic smart card that allows them to access any vehicle in the company's fleet after they've called and reserved a car. If the car that a member initially selects isn't available, he or she will have to select another car or switch to a different time slot. But the idea of a large car-sharing program in Seattle encountered some bumps in the road. Ref Lindmark, a Seattle transportation official who helped get the Flex car program off the ground there, says the idea wasn't well received by a number of potential partners. Some rental-car companies, which he approached about starting a car-sharing program, didn't respond to requests. Some small neighborhood car-share organizations expressed their concerns that the idea just wouldn't work: Car sharing was a local, niche idea, they felt, and they didn't want to be part of a national operation. "We knew we were taking a risk," says Mr. Lindmark, outreach coordinator for the King County metro area's Car-Sharing Program in Seattle and a partner with Flex car. "But we thought wherever you have urban density, a good transit system and marketing opportunities, there's a good chance it could work." and Mr. Peterson discovered his customers weren't exactly who he expected them to be. Unlike in Europe, he found, people in the U.S. weren't necessarily interested in replacing their cars altogether, but rather in using the car-share program as a supplement to public transportation or a substitute for a second car. Also, Mr. Peterson discovered that the biggest growth came not from individuals, but from small and midsize companies that didn't want to maintain their own fleets of vehicles. Mr. Peterson quickly tailored his ad campaigns to attract more businesses as clients, as well as people looking for second cars. The work paid off. Flex car remains tiny compared with traditional rental firms, but its network has grown to 10,000 members in six states, covering such markets as Chicago, Los Angeles and Portland, Ore. It plans to expand to 30 more markets by 2008. Perhaps an even better indication of success: Other car-sharing programs have popped up since Flex car got started, including San Francisco-based City Carshare, Boston-based Zip Car and Chicago's I-Go Car. Question by looking at the solution that people attach their image with their cars, so do you think this solution will help in changing this ingrained behavior? Give your opinion and provide reasoning.
The Solution: Mr. Peterson started Flex car in Seattle in 1999 with just five vehicles. His first step, which he has repeated in other cities, was to partner with local public-transportation boards, universities and businesses to help market his program. For instance, in some cities Flex car has made deals with transit officials that let the company offer its customers passes for public buses and trains. And some employers partially subsidize Flex car memberships as a perk for their employees. Mr. Peterson's marketing tried to position car sharing as liberating, offering slogans such as "Why buy wheels when you can borrow them?" Flex car’s ads also urge drivers to "Shift your thinking" about car ownership--don't look at a car as a status symbol but as a means of getting around. Don't even look at it as property, in fact; think of it more as a time-share vacation home. Car sharing "gives you a short-term relationship, kind of like getting a motel room instead of buying a house," says Michael Marsden, a professor at Eastern Kentucky University in Richmond, Ky., who teaches about American car culture. "We as Americans love our cars, but they certainly drain time and money, and this is an alternative to that." Mr. Peterson also pushed price. The average cost of owning or leasing a new car, including things such as gas, insurance,
But the idea of a large car-sharing program in Seattle encountered some bumps in the road. Ref Lindmark, a Seattle transportation official who helped get the Flex car program off the ground there, says the idea wasn't well received by a number of potential partners. Some rental-car companies, which he approached about starting a car-sharing program, didn't respond to requests. Some small neighborhood car-share organizations expressed their concerns that the idea just wouldn't work: Car sharing was a local, niche idea, they felt, and they didn't want to be part of a national operation. "We knew we were taking a risk," says Mr. Lindmark, outreach coordinator for the King County metro area's Car-Sharing Program in Seattle and a partner with Flex car. "But we thought wherever you have urban density, a good transit system and marketing opportunities, there's a good chance it could work." and Mr. Peterson discovered his customers weren't exactly who he expected them to be. Unlike in Europe, he found, people in the U.S. weren't necessarily interested in replacing their cars altogether, but rather in using the car-share program as a supplement to public transportation or a substitute for a second car. Also, Mr. Peterson discovered that the biggest growth came not from individuals, but from small and midsize companies that didn't want to maintain their own fleets of vehicles. Mr. Peterson quickly tailored his ad campaigns to attract more businesses as clients, as well as people looking for second cars. The work paid off. Flex car remains tiny compared with traditional rental firms, but its network has grown to 10,000 members in six states, covering such markets as Chicago, Los Angeles and Portland, Ore. It plans to expand to 30 more markets by 2008. Perhaps an even better indication of success: Other car-sharing programs have popped up since Flex car got started, including San Francisco-based City Carshare, Boston-based Zip Car and Chicago's I-Go Car.
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by looking at the solution that people attach their image with their cars, so do you think this solution will help in changing this ingrained behavior? Give your opinion and provide reasoning.
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