Can Fractional Car Ownership Work?

Connie Loizos : techcrunch – excerpt

A couple of weeks ago, Ford Motor Company somewhat quietly announced that next month, it’s beginning a leasing pilot program in Austin that will enable three to six people to lease a Ford Vehicle together.

It’s not alone in thinking about fractional car ownership. Audi is similarly trying out a fractional car ownership program called Audi Unite that allows up to five people to own a car together. (It launched, and remains exclusively available, in Stockholm, Sweden.)

A nascent startup in London called Orto is also entering the business of fractional car ownership.

The big question, of course, is whether the concept – which has been enormously successful when it comes to hotel time shares and private jets – can work when it comes to cars…

In fact, that foregone conclusion explains why GM, along with Ford, Audi and BMW, have recently begun testing out their own car-sharing services. They haven’t gone terribly well to date, though. While GM’s service is about to launch, BMW’s pilot program, called DriveNow, was suspended in its pilot city of San Francisco last November. The company cited the city’s parking policies as too big a hindrance…(more)

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