Car sharing services allow urban residents in capital cities and regional centres to access vehicles without the heavy financial and environmental burdens of private ownership, according to transport experts and recent data. Australians currently spend roughly 15% of their household income on transport, with insurance, registration, servicing, and roadside assistance adding up to about $8,000 per year, based on figures from the Australian Automobile Association.
Urban Mobility and the Economics of Car Sharing
Owning a private car remains a major household expense, but alternative models are changing how city dwellers approach transport. Services such as Flexicar, GoGet, and Kinto let consumers book vehicles via smartphone apps, utilizing designated council bays across major metropolitan areas. For instance, the City of Sydney provides more than 800 bays for car share vehicles, while the City of Melbourne maintains 600.
Most providers charge by the hour, occasionally including a membership fee, while covering ownership costs, fuel, and charging. Dr Elliot Fishman, director at the Institute for Sensible Transport, notes that data reveals the average trip in a shared car spans 18 hours or longer. This indicates that users frequently hire vehicles for a full day or multiple days.
Pro Tip: According to Dr Elliot Fishman, utility vehicles like vans are heavily utilized in car-sharing networks, running about twice as busy as standard passenger cars.
Filling the Gap in Multimodal Transport
Car sharing is not meant to replace daily public transit, walking, or cycling. Instead, it bridges the gap for people who mainly rely on walking, cycling and public transport, but occasionally need a vehicle for longer trips or heavy loads.
Hussein Dia, a professor of transport technology and sustainability at Swinburne University, points out that the service redefines vehicle access. “Perhaps the simplest way of thinking about it is that car sharing changes the question from Do I need to own a car? to Do I need access to a car?” Dia explains. The primary market consists of 24- to 34-year-old singles or couples living in the city, though the model increasingly appeals to families who only own one car.
Environmental Impacts and Urban Space Reduction
Transport stands as Australia’s second-largest emissions source, driven largely by cars and light vehicles that account for about half of a typical household’s carbon footprint. Car sharing offers a direct remedy by reducing total vehicle numbers on the road.
The City of Melbourne estimates that every single car-share vehicle removes up to nine privately owned cars from circulation. This cuts car use by up to 50% per member. Assoc Prof Jennifer Kent emphasizes that these benefits require commitment. “There’s no point using a car-share car and then keeping your own car on the side,” she says, noting that households save money while society gains environmental benefits.
Furthermore, private cars occupy substantial physical space—averaging 9.2 square metres per person compared to just 0.5 to 1.5 square metres for walking, cycling, or public transport. Reducing the number of parked and driven cars frees up valuable urban space for community use.
Fleet Diversity and the Electric Vehicle Transition
Car share operators maintain diverse fleets ranging from small hatchbacks to SUVs, vans, and utes, utilizing petrol, diesel, hybrid, and electric engines. Specific providers offer tailored fleet options:
- Kinto: Operates a hybrid-only fleet for members.
- Flexicar: Features eight EVs accessible across its network alongside a fleet that is half hybrid.
- Evee: Operates an entirely electric fleet.
Despite these offerings, Dr Elliot Fishman explains that operating margins remain too thin for most car share companies to finance entirely electric fleets independently. He suggests that state governments could accelerate the transition by providing financial rebates or free charging options at designated car share bays.
Did You Know? According to Assoc Prof Jennifer Kent, the psychological impact of day-to-day costs in car sharing encourages people to drive less. Unlike a traditional vehicle purchase, which involves a large sunk cost that tempts owners to drive everywhere, car sharing prices trips individually.
Frequently Asked Questions
How much does car sharing cost compared to car ownership?
While car ownership costs Australians about $8,000 annually in fixed expenses like insurance, registration, and servicing—before even accounting for fuel—car sharing services typically charge by the hour, with fuel or charging costs included in the hourly rate.
Do I need to pay for fuel when using a car share vehicle?
Who uses car sharing the most?
The core demographic includes 24- to 34-year-old singles and couples living in the city, though households use the service to eliminate the need for a costly second car.
How many private cars does one shared car replace?
According to estimates from the City of Melbourne, a single car-share vehicle replaces up to nine privately owned cars.
What do you think?
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