eclectic_boy: (Default)
[personal profile] eclectic_boy
PhillyCarShare just sent out emails stating that they'll be eliminating their "Basic Freedom" Plan, which had no monthly fee but higher car-rental rates. Now everybody will pay a $15/month fee, and pay the lower rates (costing about $2/hr less). But since I only typically use PhillyCarShare for two hours or so a month, that's a big increase in my cost per hour.

I have until Wednesday before the switch goes into effect. I'm pretty sure I'll leave (the email even included a link for canceling membership, so they clearly know some people are going to be unhappy). I just can't figure out if this is purely an attempt to increase their revenue (and the number of hours per month their cars get used), or if they have some other reason to want to get rid of their occasional users...

Date: 2009-04-25 07:36 am (UTC)
From: [identity profile] qianian.livejournal.com
What was the rationale in the email?

It's always sad when these carshare companies change something and it doesn't make sense.

Date: 2009-04-25 02:10 pm (UTC)
From: [identity profile] reldnahkram.livejournal.com
How does insurance work? Is it possible that they have to carry insurance for every registered user, so they're trying to thin out for that reason? I doubt this is the case.

I suspect they simply need the revenue and the occasional users don't cover the costs of the vehicles, vehicle maintenance, and vehicle storage needed to ensure that there are enough cars for them.

Date: 2009-04-26 02:03 am (UTC)
From: [identity profile] orawnzva.livejournal.com
But occasional users also put less wear on the cars, use less gas, and make the cars unavailable for other users less of the time, so they are responsible for a proportionately smaller share of costs. Without seeing the raw data, I'm not sure why this would make sense.

Date: 2009-04-25 04:08 pm (UTC)
irilyth: (Only in Kenya)
From: [personal profile] irilyth
I wonder if it's just a revenue thing, that the guaranteed $15/mo is steadier for them than relying on hourly rates to cover their costs.

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