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To: Sam Citron who wrote (11)9/2/2008 12:58:20 PM
From: Glenn Petersen  Respond to of 27
 
Zipcar has a decent presence on Chicago's North Side. However, I suspect that its future profitability, if any, will be characterized by thin margins. They will probably end up as an acquisition candidate for one of the car rental companies.

Chicago has a relatively good mass transit system, though it is being strained by heavier usage and a lack of funding for upgrades. When I go into the city, particularly for business, I take Metra and use the CTA as much as possible. I have never had a problem getting a seat going in, and always make sure that I arrive at the station early when going home. I have seen very few "standing room only" cars.

If Obama is elected, I am sure that Daley will be tapping him for transit funding.

Record ridership strains CTA, Metra, Pace—and it's likely to get worse

Lack of capital improvement catches up to transit agencies


By Jon Hilkevitch and Richard Wronski
Tribune reporters

September 2, 2008

Hop aboard the bus or train, if there's an inch of space for the doors to close, and prepare for a rough ride.

The surging popularity of mass transit in the Chicago area is on a collision course with the system's shortcomings: too few seats and inadequate capital funding.

Fueled by high gas prices, ridership is at or near record levels for Metra and the Chicago Transit Authority. Expect it to become even more crowded with Labor Day in the rear-view mirror and families returning to work and school from summer vacations.

"There's a huge bounce in ridership after Labor Day vacations," said CTA President Ron Huberman, who noted CTA ridership historically peaks in September.

It promises to be challenging for the CTA and Metra to accommodate the extra riders. As it is, try to squeeze onto the overcrowded CTA "L" platform at Clark/Lake—let alone actually get onto the next train—at about 5 p.m. on a weekday.

"It's another wild night on the cattle drive. Moove along," commuter Katie O'Shea, 33, said during evening rush last week as she held her backpack in both arms and pushed toward a Brown Line train approaching the station.

The CTA is hurriedly hiring hundreds of bus drivers and train operators after higher-than-normal attrition and a hiring freeze last year prompted by a series of "doomsday" threats that would have slashed service, raised fares and furloughed hundreds of workers.

Delivery of new CTA rail cars—to replace trains that began service in 1969 and should have been retired more than a decade ago—remains at least two years away. In addition, the CTA has received only half of the 400 new buses it ordered to replace 1991 models that had been due for retirement in 2003.

The predicament leaves the transit agency no option except to attempt to recycle its existing equipment more quickly on routes and put supervisors on train platforms and at bus stops to improvise service changes to deal with waiting passengers.

"I guess you could call it the poor man's version of expanding the fleet," Huberman said.

There's no hiding the desperation.

The CTA is removing all the seats from some of its rail cars and reducing seats on some buses as part of an experiment beginning this fall to pack in more riders.

To boost its seating, Metra ended bar-car beverage service Friday and plans to remove some on-board toilets. The commuter railroad is also rehabbing five 1950s-era bilevel coaches that it had sold to a Virginia commuter line and bought back earlier this year.

Even the Pace suburban bus system, the unfortunate symbol for years of how the car is king in the suburbs, is packing them in these days on routes that feed Metra and CTA rail stations and business parks. Pace reduced special express service to Cubs and Bears games to free up buses for regular evening service, officials said.

The CTA, which provides an average of 1.7 million rides a day and is already operating at full capacity during rush periods, is bracing for up to 200,000 additional riders each weekday, transit officials said.

At least many CTA customers ride for relatively short distances. Most Metra riders aren't as lucky, traveling up to 50 miles each way, in some cases while standing in the aisles and vestibules or sitting on the steps of packed trains.

When the trains are too crowded, the conductors don't always collect cash fares, so revenue is lost, Deborah Moore pointed out after her morning Union Pacific North Line train arrived last week in downtown Chicago more than an hour late.

"Metra, the way to really fly," said Moore, mocking the commuter railroad's slogan. "Oh, yeah, how could I forget? Flying doesn't seem like a good idea these days, either."

Sustained ridership increases month after month leave little doubt that transit across the U.S. is experiencing a renaissance as commuters drive less. The 53.2 billion-mile reduction in total miles driven nationwide since last November has surpassed the mileage decline during the oil crisis of the 1970s, according to the U.S. Department of Transportation.

But in the Chicago region, another crisis that has been developing for years—no new money for capital improvements for mass transit—threatens to erupt as transit ridership grows.

CTA bus ridership has increased 6 percent through July, compared with the first seven months of 2007, while rail ridership rose 2 percent, the CTA said. Weekend ridership on the CTA system also increased 6 percent. And ridership in 2007 was the highest since 1992.

"We're ecstatic about the phenomenal growth in ridership but concerned about our capacity to manage and keep the new customers," said Huberman, who calls state passage of new capital funding to help pay for new buses and trains the CTA's No. 1 priority.

"Some people are willing to push onto a crowded train or bus during rush hour and find that acceptable," Huberman said. "Other people simply will not opt for that transportation."

The CTA plans to introduce operational changes after Labor Day to try to maximize efficiency. Its efforts include:

• Deploying managers who have the authority to call extra buses into service at pinch points during rush periods. The goal is to redistribute buses where they are most needed and ease bus-bunching.

• Increasing the number of train runs through the end of the year as slow-zone construction is completed, particularly on the O'Hare branch of the Blue Line and in the Red Line subway.

• Doing more short-turning of trains on the Brown Line corridor and along the Blue Line to address pinch points where waiting passengers cannot board already full trains. Short-turning involves running some trains on a portion of the route in the morning to pick up passengers at high-volume stations and deliver them to the Loop.

Meanwhile, Metra ridership increased 5 percent in the first half of this year, compared with the same period in 2007.

Metra expects 2008 to be its third consecutive record-setting year, said Lynette Ciavarella, the railroad's director of planning and analysis.

Eight of Metra's all-time top 10 ridership months have occurred since June 2007, she said. In particular, weekend ticket sales are outstripping all categories, up 20 percent in the first half of 2008, she said.

But without millions of dollars in new funding from a state public works program, Metra cannot buy the additional cars it needs to meet ridership growth, said spokeswoman Judy Pardonnet. The commuter railroad has not acquired any new trains since 2005.

Pace's total ridership increased 3.6 percent through July. July's ridership was up 10.6 percent compared with the same month last year, the highest July hike in the suburban bus system's history, said spokesman Patrick Wilmot.

Pace is also coping with equipment shortages due to the capital funding shortfalls. With increases in ridership slowing service, on-time performance has suffered.

"We've used a majority of our capital funding to cover operating deficits over the past several years," Wilmot said. "The issue for us is whether a capital bill is passed soon enough and is adequate for us to replace our fleet."

jhilkevitch@tribune.com

rwronski@tribune.com

Copyright © 2008, Chicago Tribune

chicagotribune.com



To: Sam Citron who wrote (11)12/16/2008 9:05:02 PM
From: Glenn Petersen  Respond to of 27
 
Hertz emulates the Zipcar business model:

Hertz Will Try to Connect With the Carless

December 16, 2008, 8:45 am

By Ken Belson

If imitation is the sincerest form of flattery, then Zipcar, the popular car-sharing company for carless urbanites,­ should certainly be flattered.

Today, the Hertz Corporation, which calls itself “the world’s largest general use car rental brand,” is starting a service called Connect by Hertz that is strikingly similar to Zipcar’s. Available initially in New York and Hertz’s hometown of Park Ridge, N.J., as well as London and Paris, it will serve customers who pay an annual fee to rent cars by the hour — without some of the hidden and not-so-hidden fees lumped into typical rental contracts.

The arrangement is familiar to members of Zipcar, which started eight years ago.

Like Zipcar, Connect by Hertz members can make reservations online and use swipe cards to open their cars, which will be parked at 10 lots in Midtown Manhattan. In a nod to Zipcar’s success in signing up young drivers, the Toyota Prius and the Mini Cooper will be among the first 35 cars that Connect by Hertz will offer in New York.

Hertz has 40,000 cars in the New York area, so its new car-sharing service is clearly in its early stages. By comparison, Zipcar has about 5,500 cars in 13 big cities, including 1,400 cars in 300 locations in the New York metropolitan area.

In an interview, Mike Senackerib, senior vice president for marketing at Hertz, did not acknowledge Zipcar by name, despite the obvious parallels. What he said, instead, was that “there’s a market for car-sharing and it’s larger than has been developed to date.”

He disagreed with suggestions that Hertz’s hourly rental business could erode its existing business, which forces customers to pay for a full day even when they use their cars for just part of the day.

“This is a different opportunity because we don’t reach the customers who only want a car for a few hours as well as we could,” Mr. Senackerib said.

Starting in New York was no accident, he added, because of the city’s concentration of people who do not own cars but need them occasionally. Next year, Hertz will expand the number of cars and locations, and open in 20 additional American cities and 20 more abroad, he said.

Connect by Hertz will have unique features, including a button that drivers can hit to call a customer service operator, not unlike the Onstar service. Cars will also have Bluetooth, E-ZPass, iPod docking stations and a GPS system called Hertz NeverLost.

Connect by Hertz customers will also be able to call to reserve cars (for a $3.50 fee). Its Web site is splashed with green, not Hertz’s trademark yellow.

Rental car companies have been hurt by the downturn in travel and the woes affecting the auto industry, so it is natural that they would take aim at Zipcar, which has attracted 260,000 members since it began in 2000.

Earlier this year, Enterprise Rent-a-Car, for example, created a car-sharing business called WeCar for companies, government agencies and colleges that wanted cars for their workers and students. WeCar, which has about 100 cars around the country, has vehicles on the Google campus in California. All of WeCar’s vehicles are hybrids.

Robin Chase, the former chief executive at Zipcar, said it’s a no-brainer for Hertz and Enterprise to get into the car-sharing market, which was first developed in Europe. She also sees nothing wrong with Hertz relying heavily on Zipcar’s formula.

“Zipcar has vetted the space,” said Ms. Chase, who now runs GoLoco, a ride-sharing service. “If I were them, I would go straight to Zipcar and copy everything.”

She said the key is whether Hertz can use technology to keep costs down, and whether the company can mimic Zipcar’s success marketing to the under-35 urban set who rely heavily on public transportation.

“The question is how clever their managers are,” she said. “I’m sure they are going after the same people Zipcar is using, but they will market with their own spin.”

This raises the question why Hertz included its name in its car-sharing service. Hertz, after all, is a corporate titan, a potential turn-off to college students and young professionals.

For its part, Zipcar is not worried about losing its edge in a market it helped popularize.

“We’re certainly sitting up and noticing what other competitors are doing,” said Zipcar’s chief executive, Scott Griffith. But “this is Hertz car sharing 1.0 and we’re at Zipcar 8.0.”

Copyright 2008 The New York Times Company

wheels.blogs.nytimes.com