Thursday, September 2, 2010

Bizmology

Bizmology


Will car sharing really catch on?

Posted: 02 Sep 2010 12:38 PM PDT

There was a tiny car parked outside my house today, and it was not mine. Mine is the pick-up truck, with the Red Heeler in the passenger seat. (What can I say? It's a guy thing  in Central Texas).

While Hoover's and First Research editors were pouring through the latest data about the August downturn in US auto sales and what all that means for Ford, Chrysler, General Motors and other manufacturers, I was trying to figure out what that little car was doing outside my front gate.

A chat with its friendly owner (returning from the local coffee shop, fresh latte in hand) soon made it all clear. It's one of Austin's Car2Go cars.  Sponsored by Daimler, Car2Go is a car share program which began operating in the Texas capital in November 2009.  It offers cheap ($13 an hour, or $66 a day), online, and on demand rental of tiny two-seater Smart cars. Aimed at the younger set (Austin has a large student population) it allows city government workers and other non-car owning (or car driving) residents an alternative opportunity in getting around town. Free parking spots are provided.

Car share programs started in Europe in the 1960s and 1970s, prompted by snarled city traffic and high gas prices. They have grown in popularity as a niche adjunct to robust public transportation systems, allowing commuters to make short trips from home, office, bus stop, or rail terminus, without needing to own a car. 

To the surprise of some pickup drivers with dogs in their front seats (ahem) car sharing has had some moderate success in North America, led by Zipcar, which filed to go public in mid-2010. According to CarSharing.net, in early 2010 there were 27 car sharing programs in the US with more than 388,000 members sharing about 7,600 vehicles; and about 20 car sharing programs in Canada. The attractions are obvious – convenience, lower costs, less gasoline consumption, easier parking. 

I can see the appeal, especially in cities that combine a densely populated urban area with well-used public transportation systems and an environmentally conscious populace, such as San Francisco and New York City. But Austin, with its single story sprawl, spacious urban layout, and highly limited public transportation system? Evidently so (especially since the City of Austin made City-related use of the Car2Go cars free to its employees in the initial six-month trial period). The City expanded its pilot program in May 2010 and company subsequently opened up its Car2Go membership to non-City employees across Austin.

I might just have to check it out.

Do they allow a Red Heeler to travel in the passenger seat?

~

Photo courtesy of the author

Paste Magazine folds (for now)

Posted: 02 Sep 2010 08:56 AM PDT

Man, publishers just can’t catch a break. Pop culture mag (and personal fave) Paste is calling it a day for the time being, suspending its print publication while investigating alternatives.

Paste is just the latest victim of economic fallout felt by the magazine publishing industry. Consumer magazine readership grew by less than 1 percent between spring 2009 and spring 2010, according to research firm GfK MRI. Confoundingly, ad pages and rate-card revenue actually grew for the first time in nine quarters during the second quarter of the year, says Publishers Information Bureau.

Paste‘s situation became especially dire in 2009, when it solicited subscribers to donate whatever they could to keep the magazine in print. The contributions kept it afloat for a few months, but it wasn’t enough to tackle economic realities. The publisher’s website, in the meantime, will continue pumping out the same great film, music, and pop-culture news and reviews that the magazine has become famed for.

Here’s hoping the Web is a safer home for Paste (and other great publishers) until print can make a comeback.

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