CarSharing:

1. EXTENDING YOUR REACH, IMPROVING YOUR MARGINS CarSharing: Presented by: ABRAMS CARSHARING ADVISORS

2. Introduction Why CarSharing? Why Now? "Be Ahead Of The Curve!" “For over 26 years, ACG has remained in the forefront of the evolution of the auto rental and transportation industries. We have worked with our clients to look beyond the horizon, to stay ahead of the curve, to challenge existing business models, and adjust to changes in consumer behavior and market dynamics. CarSharing's time has come as it taps into long-term cultural, environmental, economic, and life style shifts, and is poised to become a multi-billion dollar global industry. ACA has been formed to assist existing and new businesses, corporate fleet operators, and others who have short-term transportation needs, to exploit the enormous value proposition offered by CarSharing.” Neil Abrams President and Founder of Abrams Consulting Group ABRAMS CARSHARING ADVISORS

3. Background What is CarSharing? CarSharing is a membership based organization open to the public. Fully automated platform where members and businesses have access to vehicles 24/7 through the use of the internet, wireless and GPS technology. The CarShare technology enables individuals to drive a car on an as-need basis, paying only for the time and mileage they reserve. Vehicles are located at unstaffed self-service locations. The CarShare Operator (“CSO) provides the gas, insurance, parking and maintenance. ABRAMS CARSHARING ADVISORS

4. Background History of CarSharing Although CarSharing dates back to the 1940s in Europe, more successful CarSharing programs launched in Germany and Switzerland in the mid-1980s. Modern day CarSharing began in North America in the mid-1990s. As of 2010, CarSharing as an industry has more than 450,700 members served by over 10,194 vehicle throughout North America There are over 1 million CarShare users worldwide ABRAMS CARSHARING ADVISORS

5. Background CarShare Growth ABRAMS CARSHARING ADVISORS

6. Background How Does CarSharing work? Join or register on-line. Once application is approved the member is given a smart card. Member can now reserve any vehicle in the fleet. The CarShare member use their smart card or cell phone to access the vehicle ABRAMS CARSHARING ADVISORS

7. Background How Does CarShare Technology Work? Reserve on-line or phone. The data is wirelessly transmitted to the hardware installed in the vehicle. The vehicle now knows the date and time of your reservation. The CarShare technology logs vital driver and vehicle usage. That information is transmitted back to the CSO server. The CarShare technology automatically process the member’s usage and bills their credit card. ABRAMS CARSHARING ADVISORS

8. Background Policies & Procedures Basic Member Rules: CSOs are responsible for: Only CarShare members are authorized to operate the vehicles CSO pays for gas. A gas card is assigned to each vehicle. Members are required to fill-up the tank when it reaches below a ¼ of a tank. Vehicles must be returned to the same locations and parking spaces CSO provide insurance coverage up to the minimum state-mandate, which vary by state and CSO. Members are expected to return the vehicles on time or are subject to penalties CSO provides assigned parking No Smoking in any CarShare Vehicles CSO are responsible for all vehicle maintenance and service. This includes but not limited to scheduled cleanings and PMs. Members are encouraged to pick-up after themselves. Trash in – Trash out ABRAMS CARSHARING ADVISORS

9. Benefits Social & Environmental Benefits “The day will come when the notion of car ownership becomes antiquated.” William Clay Ford Jr., Chair, Ford Motor Company Ltd. • Environmental Benefits • Complements mass-transit use • Reduces congestion • Reduces parking demands • Reduces fossil fuel consumption • Reduces greenhouse gas emissions and air pollution • LEED accredited program CarSharing addresses Social and Economic issues ABRAMS CARSHARING ADVISORS

10. Benefits Social & Environmental Benefits CarShare Vehicle: • Approx. 45 -60 members share 1 CarShare vehicle and 1 parking space CarShare Vehicle: • Approx. 45 -60 members share 1 CarShare vehicle and 1 parking space CarShare Vehicle: • Approx. 45 -60 members share 1 CarShare vehicle and 1 parking space X X X We all share the same vehicle . . . X X X X X • Studies have shown 1 CarShare vehicle: • Removes 9-13 private vehicles off the road • Eliminates the need for 11 to 26 parking spaces • 26% of CarShare members sold their personal vehicles • 53% avoided purchasing a vehicle Sources: *Elliot Martin, PhDPost-Doctoral Research Engineer, Transportation Sustainability Research Center University of California, Berkeley *Susan A. Shaheen, PhDResearch Associate, Mineta Institute Honda Distinguished Scholar in Transportation, University of California, Davis, & Acting Co-Director, Transportation Sustainability Research Center (TSRC) University of California, Berkeley NYC Planning Board Amendment of 2010 ABRAMS CARSHARING ADVISORS

11. Benefits CarShare Performance Metrics • Member to car ratio • 45 – 60 drivers to 1 CarShare vehicle & 1 parking space Sources: Shaheen, Cohen, and Chung. TRB 09-3688 NORTH AMERICAN CARSHARING: A TEN-YEAR RETROSPECTIVE ABRAMS CARSHARING ADVISORS

12. Benefits Economic Benefits “The day will come when the notion of car ownership becomes antiquated.” William Clay Ford Jr., Chair, Ford Motor Company Ltd. • Alternative to car ownership • All inclusive program: • Includes gas • Includes insurance • Includes maintenance • Includes parking • Pay only for what you use Sources: Data based on 2010 AAA study of average driving cost Zipcar www.zipcar.com ABRAMS CARSHARING ADVISORS

13. CarShare Demographics Target Markets • Potential CarShare users: Individuals between the age of 21 to 64 years old with a credit card, internet access and a cell phone • Early adopters: Individuals between the age of 25 and 45 years old. • Mass-transit user: Easy access to mass transit and a primary form for commute. ABRAMS CARSHARING ADVISORS

14. CarShare Demographics Target Markets • CarShare Data • Females = 56.1% • Males = 43.9% • Target market by age = 21 to 45 • Target market by income = $20K - $60K 83% of CarShare members are between the age of 21 - 45 Sources: City Data.com / Shaheen, Cohen, and Chung. TRB 09-3688 NORTH AMERICAN CARSHARING: A TEN-YEAR RETROSPECTIVE

15. Car Rental & CarSharing CarShare’s Value Proposition? • Minimal Start-up Cost • Fully Automated System • Paperless & Keyless • Automated Reservation & Billing • 24/7 Self-Service Operation (No Rental Counter or Location) • Real Time Fleet Management Information & Control • High Utilization • Based on 24 Hours • Hourly & Daily Rentals • 35% - 45% Utilization • Average RPU of $1,500 - $1,700 per vehicle ABRAMS CARSHARING ADVISORS

16. Car Rental & CarSharing The Cost Factor ✓ ✓ You have the fleet CarShare is not labor intensive! What do you need to Start a CSO? Need to purchase or lease the CarShare Technology Need to develop your CarShare website ✓ ✓ • The main cost component of a CarShare business are: • Fleet • Insurance • Personnel • CarShare Technology • Website Development Manageable and Controllable Start-up Cost ABRAMS CARSHARING ADVISORS

17. Car Rental & CarSharing CarShare Performance Metrics 8.14 $45.78 $56.35 41.8% $1,691 • 24/7 Self-Service Operation • Hourly or Daily Reservations – (prefer more hourly use) • Average Utilization of 35% - 45% • Based on 24 Hours • Average RPU per month of $1,500 - $1,700 per vehicle ABRAMS CARSHARING ADVISORS

18. CarShare Industry Market Segments *Transportation trends. Smart Para-Transit Study • Retail • Alternative to Car Ownership • Corporate • Business to Business • Corporate Fleets • Employee Benefit • Governments & Municipalities • Solution for Parking Issues & Demands • Environmental Policies • Fleet Management Solution • Transportation Agencies • Compliments Mass-Transit • Fleet Management Solution • Institutions • Educational • Real Estate Developers • Tenant Amenity • LEED Accredited Program ABRAMS CARSHARING ADVISORS

19. CarShare Industry 5 year Forecast New Modes of CarSharing to Increase Revenue Potential in North America and Europe to 7 billion dollars by 2016 88% of North America’s CarShare Members are in the United States across 26 CarShare Programs ABRAMS CARSHARING ADVISORS

20. CarShare Industry Car Rental / CarShare Operators • Hertz - Connect by Hertz • Global CarShare Operation • Enterprise - WeCar • Operates in North America • U-Haul – U-CarShare • U.S. Operations • Avis – Okigo • European Market (France) • Several Independent / Franchise Car Rental • Non-profits ABRAMS CARSHARING ADVISORS

21. Summary CarSharing • Existing infrastructure an overall back office • Recognizable brand • Existing customer base • Scalable and controllable start-up cost • Sustainable demand growth • Immature and unsaturated competitive field • High RPU • Maximum ROI Is this a business for you? ABRAMS CARSHARING ADVISORS

22. ABRAMS CARSHARING ADVISORS Contact Us For more information about ACA and Car/FleetShare programs, please contact us at: ABRAMS CARSHARING ADVISORS A DIVISION OF ABRAMS CONSULTING GROUP, INC. Corporate Office 3020 Westchester Ave Purchase, NY 10577 P: 914.696.5100 F: 914.696.5101 Web: www.abramscarsharing.com Julian Espiritu P: 914.696.5100 D: 914.729.0058 F: 914.696.5101 E-Mail:jespiritu@abramsconsulting.com ABRAMS CARSHARING ADVISORS