Friday, April 4, 2014

Not so Zippy

Taking a break from the "Is it Safe" Series...

While doing my daily browse of today’s news, I came across an article about the link between car access and poverty reduction. The article implied that poorer families would benefit more with a car of their own instead of just relying on public transportation. Easy access to a car can increase chances of having a good job, provide reliability in emergency situations, and save time and energy which, in turn, can reduce health issues. The problem is that cities, like Washington DC, are angling more towards public transportation and bike sharing.  So what does that mean for the poor areas of the city?

I am not a keen observer of studies about poverty, but it does peak my interest from time to time. When I started to discuss the article with my mother, pointing out the problem of the new transportation movement towards bikes and public transportation, my mother reminded me about Zipcars and other car sharing options. Since I have a car of my own I haven’t had the need to look into the option. After looking at Zipcars’ website, I found out that it is pretty revolutionary… 

Zipcar is a car sharing company that operates in several major cities in the US and Canada, as well as UK and Spain. You can find most of the reserved cars at public transportation hubs like subway stations. The company is pretty tech-savvy so you can make your reservations through mobile apps (just as cool as using the Uber taxi app), but if you don’t have a smart phone you can call as well. Individuals, companies, and universities can sign up for membership. With membership, you get a lot of discounts on entertainment, business start-ups, and free parking (in certain cities). The company boasts that they help a person save an average of $500/month in car expenses because Zipcar takes care of gas, insurance, and minor car maintenance. (However, damages to the car may cost up to $750.) Rates and membership fees are about $8-10/hour (or $84 for the day) but with membership of $6/month the reservation rate is a little bit lower. 

For a person who is on or below the poverty line, Zipcar might not be a beneficial option in my opinion. Although the person does not have to take care of maintenance, insurance, or gas, (and sometimes parking), the person still has to have a cushion of $750 for possible fees. Zipcar charges a fee for things like late returns, low gas (below the 1/4 mark), smoking in the car, and key or Zipcard (your membership card) replacement. There are also damage fees like flat tires, dents, scratches, and third party damages if the car was in an accident on your watch. Another thing about damage fees, if you reserved the car in an unavoidable event, like a flood, hail storm, or hurricane, you still need to pay for any damages to the Zipcar. The fees are not outrageous, but for a person who might be living from paycheck to paycheck it could be. A person who borrows a Zipcar needs to be meticulous in their plans in order to be cost efficient. You can’t just get in a Zipcar and go; You have to reserve ahead of time, be prepared to fill the tank with gas, and return the car to a designated spot before time runs out on your reservation. A person who lives every day in a organized, thought-out schedule probably will be able to use the Zipcar without problem, but I’m concerned that a person who lives in an unstable environment, like those in poor areas, might struggle with the regulations. 


Cities are pushing for more transportation sharing options. Public transportation, bike and car sharing, and upscale taxi service are all good things for a city in my opinion. However, the article in the Washington Post makes a good point about car access and poverty reduction. As I have researched, it has become easier to use a shared car in cities like Washington DC but for those with low income it is a struggle.