Parking crunch spurs city to sponsor car-sharing program

Hackensack, N.J. - After building parking decks and handing out 17,000 parking permits in a 1.4-square-mile area, the city of Hoboken, N.J., is trying a new solution to its parking crisis; a car-sharing program.

Partnering with Connect by Hertz, Hertz Global Holdings Inc.'s car-sharing initiative, Hoboken is the first city in the nation to create such a partnership.

Beginning last month, residents have been able to join the program by registering online and paying a $25 application fee. About a week later, they receive a swipe card that unlocks the "Corner Cars" when swiped over the windshield.

Annual fees of $25 are being waived for two years until Park Ridge, N.J.-based Hertz renews its contract with Hoboken.

By computer or phone, customers can reserve a car, request a time and choose from the available cars. After the card is swiped, the keys will be found inside the car, which must be returned to the original spot. A reservation can last for an hour or as long as a week.

Connect by Hertz was created in December 2008 to provide more mobility after the company recognized car sharing as an additional revenue stream, said Griff Long senior director of global car sharing. Modeled after Zipcar, a car-sharing company founded in 2004, Connect by Hertz operates in six countries and on 45 college campuses.

About 30 "Corner Cars" are in the program, which will eventually reach 42, including Mazda 3s, Toyota Camrys and BMW Mini Coopers.

Ian Sacs, director of the Department of Transportation and Parking, suggested the idea after recommending car sharing to other cities when he worked for a consulting firm. Both Zipcar and Hertz put in bids for the citywide partnership, but Hertz was the better fit, Sacs said.

"Hoboken has tried to approach the parking problem almost entirely on the supply side, which means it's always been building more garages and building more spaces," he said. "My approach is the demand-side solution, which is to try to look at the reasons why people need cars and come up with alternative options to them."

According to the Transit Cooperative Research Program, each car-sharing vehicle takes 14.9 privately owned cars off the road. Hoboken officials estimate that each Corner Car will encourage 17 households to give up their cars. Within a year, they say, 750 cars will be removed from city streets.

In Hoboken's 2004 Master Plan, the city reported an estimated 15,974 parking spaces, including 3,800 on-street spots. Communications Manager Juan Melli said residents often drive around in circles, searching for a space.

About 250 residents have signed up for the program. Car fees range from $5 to $14 an hour, depending on the model. The hourly fee includes gas, insurance, GPS navigation system and roadside assistance.

Each car has a fuel card for use at gas stations. Hoboken customers receive $75 in their account when they sign up.

"It's exceeding expectations right now," Long said.

"We've had over 100 reservations, and the utilization is hitting targets four months ahead of schedule."

The program is targeted to recreational drivers, and 90 percent of city households are located within a five-minute walk from a Corner Car. As of 2000, 38 percent of Hoboken households did not own a car, compared with 12.7 percent of all New Jersey households.

"For people who don't drive to work and use their car once or twice a week for grocery shopping, this could easily save them $3,000 to $5,000 per year," Melli said.

Hertz pays the city $100 a month for each parking spot. Marked with green lines and a "Corner Cars" sign, the cars are located only on street corners with two cars in each location.

The company is considering expanding the program based on interest from other cities. Paula Rivera, Hertz's public relations manager, said Connect by Hertz has just started to see signs of profitability with about 700 vehicles in its fleet.

"We are open to expanding to other cities, and as opportunities arise we will work with various municipalities to come up with a partnership," she said.

Hoboken will soon add more cars. But not everyone is pleased. Colon Ramona, for example, plans on buying a car soon and said the Corner Cars further burden the parking problem.

"The city is taking up space for residents because we already have a crisis, and this created a further burden on the residents," she said.

"I don't even see these (corner) cars moving. They've been sitting here for about a week."