Car Rental Companies Get Into the Business of Sharing

Sept. 30, 2008 — -- Car sharing, mostly popular among downtown residents who don't own cars, is going corporate.

At least two rental car companies are eyeing corporate car sharing, which would allow employees to rent a car by the hour for errands and customer meetings.

Enterprise says its nine-month experiment in car sharing, branded as WeCar, will now be available to some corporate customers, government agencies and universities nationally. U-Haul's car-sharing unit, U Car Share, will also market to large customers.

Without revealing specifics, Hertz says it will launch a car-sharing business on a limited scale before the end of the year. The industry pioneer Zipcar, which dominates city markets, has also been aggressively courting businesses.

Car sharing is an online business that rents to people who don't want to deal with the hassles of car ownership. It generally works like this: You register online and pay an annual membership fee. Then you reserve a car on the company website and locate the designated parking spot on city streets or private lots. The membership card, equipped with a smart chip, unlocks the door, and the ignition key is in the glove compartment. After you are done using the car, it must be returned to a designated spot.

Gas and insurance are usually included in the price, ranging from $10 to $15 an hour. Tax rates vary, with some states charging car-rental tax while others exempt car sharing. As of July 19, U.S. car-sharing programs had about 279,000 members, according to the University of California-Berkeley's Innovative Mobility Research.

In the corporate setting, car sharing can happen in various ways. A large company may request a fleet of cars on its parking lot so that employees have quick access. Small companies that can't promise a minimum revenue can instead sign up for corporate accounts, with employees seeking out cars in nearby streets along with the general public.

Car-sharing companies say their services can encourage employees to use public transportation for commuting. It also frees companies from leasing and maintaining cars and keeping track of miles and reimbursements.