CarShare Market Guide - Raleigh, North Carolina

MARKET GUIDE RALEIGH, NORTH CAROLINA

CARSHAREACADEMY.COM

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COPYRIGHT & DISCLAIMER © Carshare Academy, 2023 All rights reserved. No portion of this report may be reproduced, stored in a retrieval system, or transmitted in any form or by any means – electronic, mechanical, photocopy, recording, scanning, or any other – without the prior written permission of the publisher.

Disclaimers: This report is not published, nor sanctioned by any specific carshare company. It is the sole work and intellectual property of Carshare Academy. The data interpretations, conclusions, and recommendations herein are those of Carshare Academy alone.

No data or information confidential and proprietary to any specific carshare company, was used in the creation of this market analysis.

All data used is freely available in the public digital domain.

This analysis is not intended to be a perfect predictor of host success as many factors determine a host’s success or failure. The data used to create this analysis changes slightly from day to day, even hour to hour with bookings, fleet additions, retired vehicles, etc.

This analysis is intended to provide sound recommendations for fleet composition, based on twelve different comprehensive data sets, and provide hosts with the vehicle performance information they need to bring the best vehicles to market in their city based on available data at the time.

William Huffhine Carshare Academy

01

ABOUT THIS GUIDE Since June of 2021 The CarShare Academy has studied nearly 200 markets to provide hosts with the business intelligence they need to build a fleet consisting of the right vehicles to match the demand pattern for their city.

A team of data specialists extracts multiple sets of data from the Turo database, assembles them, and sends the workbook to Lead Coach William Huffhine for review, analysis, and interpretation to complete the Market Guide. This process can take anywhere from 4 to 8 hours depending upon city.

No scrapers or crawlers are used to extract this data as such technology can provide erroneous results.

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CONTENTS

04 MARKET DYNAMICS 10 TURO INVENTORY VEHICLE MIX 11 DAILY RATE MIX 13 TOP BRANDS 14 TOP MODELS 16 YOUR FLEET RECOMMENDATIONS 19 PROJECTED SEASONAL TREND 20 CONCLUSIONS AND RECOMMENDATIONS

MARKET DYNAMICS DEMOGRAPHICS Raleigh, the capital of North Carolina, is the second-largest city in the state and the 42nd-most populous city in the United States. According to the United States Census Bureau, the population of Raleigh was 467,066 as of 2019 .

The racial makeup of the city is 57.4% White, 32.5% Black or African American, 7.1% Asian, and 2.7% from other races. The Hispanic or Latino population of any race was 9.1%.

The median age in Raleigh is 34.2 years, with 25.8% of the population under the age of 18 and 11.6% of the population over the age of 65. The city has a relatively high percentage of young adults and a relatively low percentage of older adults compared to the national average.

In terms of education, 86.7% of the population over the age of 25 have at least a high school degree, and 42.4% have at least a bachelor's degree. The city has a highly educated population compared to the national average.

The median income in Raleigh is $68,479, and the per capita income is $34,932. The city has a relatively high median income and per capita income compared to the national average.

In terms of employment, the largest industries in Raleigh are educational services, healthcare and social assistance, and professional, scientific, and technical services. The city has a relatively low unemployment rate of 2.9% compared to the national average.

Overall, Raleigh is a diverse city with a relatively young, highly educated, and high-income population. The city has a strong economy with low unemployment rate.

04

MARKET DYNAMICS MOBILITY CHALLENGES Raleigh, North Carolina, like many cities in the United States, faces transportation challenges that impact the daily lives of residents and visitors. Some of the main transportation challenges facing Raleigh include traffic congestion, limited public transportation options, lack of bike and pedestrian infrastructure, and a lack of affordable transportation options for low-income residents.

Traffic congestion is a major issue in Raleigh, particularly during rush hour.

According to a study by INRIX, a global transportation analytics company, Raleigh ranks as the fifth most congested city in North Carolina and the 129th most congested city in the United States. This not only causes delays for drivers but also contributes to air pollution and a decrease in overall quality of life.

Raleigh also has a limited public transportation system, which can make it difficult for residents to access job opportunities, health care, and other essential services.

The city's public transportation system, GoRaleigh, is relatively small compared to other cities of similar size, and its bus routes do not reach all areas of the city.

Additionally, Raleigh has a lack of infrastructure for biking and walking, which makes it difficult for residents to use these modes of transportation as an alternative to driving. The city does have some bike lanes and sidewalks, but they are not extensive and are often in poor condition.

Finally, low-income residents in Raleigh face additional transportation challenges, such as limited access to affordable transportation options. Many of these residents do not have access to a car, and the limited public transportation options can make it difficult for them to get to work or other essential services.

To address these transportation challenges, the City of Raleigh has implemented a number of initiatives, such as the Wake Transit Plan, a long-range plan to improve public transportation in the region, and the Raleigh Bike Plan, a plan to improve bike infrastructure in the city. However, more needs to be done to address the transportation challenges facing the city.

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MARKET DYNAMICS TOURISM PATTERN Raleigh, North Carolina is a popular tourist destination, known for its rich history, vibrant culture, and diverse range of activities and attractions. The city receives a significant number of visitors annually, and the tourism industry plays a significant role in the local economy.

One of the main draws for tourists visiting Raleigh is its rich history and cultural heritage. The city is home to several historical sites, including the North Carolina State Capitol, the Governor's Mansion, and the Raleigh City Museum. Visitors can also take a tour of the city's historic Oakwood neighborhood, which is home to many Victorian-era houses and is listed on the National Register of Historic Places.

Raleigh is also known for its vibrant arts and culture scene, which attracts many visitors. The city is home to several museums, including the North Carolina Museum of Art and the North Carolina Museum of History. Visitors can also catch a performance at the Duke Energy Center for the Performing Arts or the Raleigh Memorial Auditorium.

The city also offers a range of outdoor activities and attractions, such as hiking and biking trails, parks, and gardens. Visitors can explore the William B. Umstead State Park or the JC Raulston Arboretum, or take a stroll through the Raleigh Rose Garden.

Raleigh is also home to a vibrant food and beverage scene, with many restaurants and bars offering local and international cuisine. Visitors can also experience the local craft beer scene, and visit the many breweries and taprooms around the city.

The tourism industry in Raleigh has seen a steady growth in recent years, and the city continues to attract a diverse range of visitors, including families, business travelers, and tourists interested in the city's history, culture, and outdoor activities.

In conclusion, Raleigh offers a wide range of activities and attractions that appeal to a diverse range of visitors, and the tourism industry plays a significant role in the local economy. The city's rich history, vibrant culture, and diverse range of activities and attractions continue to attract visitors from around the country and the world.

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MARKET DYNAMICS KEY ANNUAL EVENTS

Raleigh, North Carolina, is known for hosting a variety of annual events that attract visitors from all over the state and beyond. These events not only provide entertainment and cultural enrichment for local residents but also contribute to the city's economy by drawing in tourism. Some of the key annual events in Raleigh include: 1. North Carolina State Fair: This annual event, held in October, is the largest agricultural fair in the state and one of the largest in the country. It features live music, livestock competitions, arts and crafts, and a variety of food vendors. The fair also features a wide range of carnival rides and games for visitors to enjoy.

2. International Festival of Raleigh: This annual event, held in September, celebrates the city's cultural diversity by showcasing the music, dance, food, and traditions of different countries and cultures. Visitors can enjoy live performances, traditional dance, and a variety of food vendors and artisans.

3. Raleigh Christmas Parade: This annual event, held in December, features colorful floats, marching bands, and performers. The parade is a beloved tradition in the city and draws thousands of visitors each year.

4. Raleigh Beer and Wine Festival: This annual event, held in May, offers visitors the opportunity to sample a wide variety of beers, wines, and ciders from local and regional breweries and wineries. The festival also features live music, food vendors, and artisans.

5. First Night Raleigh: This annual event, held on December 31st, is a family-friendly New Year's Eve celebration featuring live music, dance, and theater performances, as well as a fireworks display.

6. Raleigh Wide Open: This annual event, held in April, features live music, food vendors, and a variety of family-friendly activities. The event also includes the Tour de Fat, a bike parade, and a beer festival.

7. Hopscotch Music Festival: This annual event, held in September, is one of the premier independent music festivals in the Southeast, featuring a diverse lineup of acts from around the world.

These events attract thousands of visitors each year and are a significant boost to the city's economy. They also provide residents and visitors with a unique opportunity to experience the culture, entertainment, and history of Raleigh, North Carolina.

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TURO INVENTORY OVERVIEW Raleigh is a well-established market for Turo with almost 900 vehicles serving the greater Raleigh-Durham metro area with a combined population of about 1,413,982.

There is one Turo vehicle for every 521 city residents, but one for every 1,578 metro residents, compared to a typical vehicle ratio of about 1:1,800 in cities that are not major tourist destinations. Demand here is driven by locals, business visitors, and tourism.

Inventory appearing in search results is well-concentrated in Raleigh proper, but this inventory also serves outlying areas as well as the city of Durham.

Delivery is an important contributor to maximum utilization as is operating with AllStar metrics.

KEY POINTS Demand in this market is strongest for economy daily drivers but there is measurable demand for lower-end luxury and performance vehicles.

Daily rates in the car category are moderately lower than comparable markets. In this category 78% of vehicles are priced below $100 per day with the $51 - $75 range holding the most inventory.

Daily rates are consistent with other comparable markets in the SUV category. In this category 60% of vehicles are priced below $100, with the $100 - $150 range holding more inventory than other price ranges Cars outnumber SUVs by about 48%, compared to most markets where cars usually outnumber SUVs by a ratio of about 2:1.

Minivans make up the third leading vehicle type by inventory.

VEHICLE MIX Approximate number of vehicles in each vehicle category. Though this number remains fairly consistent, it changes slightly daily.

896

469

Total

Cars

317

47

SUVs

Minivans

20

43

Vans

Trucks

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CAR RATE MIX Approximate number of vehicles in each daily rate cohort.. Though this number remains fairly consistent, it changes slightly daily.

82

187

Under $50/Day

$51 - $75/Day

99

65

$76 - $100/Day

$101 - $150/Day

14

22

$151 - $200/Day

Over $201/Day

11

SUV RATE MIX

Approximate number of vehicles in each daily rate cohort, in the top five brands. Though this number remains fairly consistent, it changes slightly daily.

12

97

Under $50/Day

$51 - $75/Day

82

104

$76 - $100/Day

$101 - $150/Day

16

6

$151 - $200/Day

Over $200/Day

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TOP BRANDS These are the top vehicle brands in this market by inventory count.

Other brands may outperform these brands but are fewer in inventory.

CARS

SUVS

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TOP MODELS These are the top vehicle models in this market by inventory count.

Other models may outperform these models but are fewer in inventory.

CARS Model

Avg. Trips

Avg. Rate

Low Earnings

Mid Earnings

High Earnings

Tesla Model 3

35

$114

$1,406

$2,110

$2,813

Toyota Camry

28

$62

$744

$1,117

$1,489

Kia Forte

13

$57

$690

$1,034

$1,379

Chevy Corvette

11

$251

$3,016

$4,524

$6,033

Ford Fusion

9

$58

$701

$1,052

$1,403

KEY POINTS Average trips is the average number of lifetime trips per unit in the model inventory.

Average rate is the average daily rate per unit across the model inventory. Some units book higher, some lower, but this is the average.

Low earnings is based on 12 days booked per month, mid earnings is based on 18 days booked per month, and high earnings is based on 24 days booked per month.

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TOP MODELS These are the top vehicle models in this market by inventory count.

Other models may outperform these models but are fewer in inventory.

SUVS Model

Avg. Trips

Avg. Rate

Low Earnings

Mid Earnings

High Earnings

Jeep Grand Cherokee

9

$77

$924

$1,386

$1,848

Chevy Suburban

8

$147

$1,769

$2,653

$3,537

Toyota Highlander

7

$86

$1,037

$1,556

$2,074

Ford Escape

5

$64

$773

$1,159

$1,546

KEY POINTS Average trips is the average number of lifetime trips per unit in the model inventory.

Average rate is the average daily rate per unit across the model inventory. Some units book higher, some lower, but this is the average.

Low earnings is based on 12 days booked per month, mid earnings is based on 18 days booked per month, and high earnings is based on 24 days booked per month.

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YOUR FLEET These are the vehicles that, based on data from the Turo database, analysis of that data, and market intelligence, you should consider adding to your fleet.

CARS Model

Count Now

Avg. Rate

Low Earnings

Mid Earnings

High Earnings

Ford Fusion Hybrid

2

$60

$720

$1,080

$1,440

Hyundai Accent

4

$43

$516

$774

$1,032

Nissan Altima

9

$45

$540

$810

$1,080

Lexus ES

5

$116

$1,392

$2,088

$2,784

Tesla Model S

6

$137

$1,642

$2,463

$3,284

KEY POINTS Count Now is the number of units, of this model, in inventory at the time the analysis was completed.

Average rate is the average daily rate per unit across the model inventory. Some units book higher, some lower, but this is the average.

Low earnings is based on 12 days booked per month, mid earnings is based on 18 days booked per month, and high earnings is based on 24 days booked per month.

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YOUR FLEET These are the vehicles that, based on data from the Turo database, analysis of that data, and market intelligence, you should consider adding to your fleet.

SUVS Model

Count Now

Avg. Rate

Low Earnings

Mid Earnings

High Earnings

Jeep Renegade

2

$54

$648

$972

$1,296

Chevy Trax

1

$66

$792

$1,188

$1,584

Toyota RAV4

4

$57

$687

$1,031

$1,374

Ford Escape

5

$64

$773

$1,159

$1,546

Tesla Model X

6

$111

$1,332

$1,998

$2,664

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PROJECTED SEASONAL TREND As in most industries, earnings and profitability fluctuate throughout the year. In the travel and tourism industry we call these times of year high season, low season, and shoulder season, with shoulder season being those times between high and low season that can be somewhat unpredictable.

Most Turo markets experience all three of these seasons, but the time of year these seasons are experienced varies dependent upon geography and tourism patterns.

Based on what we know about your market, the graph below illustrates the projected trend in booking activity throughout the year.

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CONCLUSIONS & RECOMMENDATIONS Raleigh is a generally healthy market for aspiring and new hosts, and established hosts looking to scale, yet caution is advised.

The inventory has grown considerably in this market over the last couple of years and may be nearing, or at a saturation point, particularly during shoulder/low tourist seasons. Without a significant marketing campaign in this city, growth potential, with maximum utilization, may be limited.

Average daily rates in this market are concerning in the car category. There is a disproportionate number of older vehicles in inventory with extremely low daily rates, driving the average down. Pricing of newer models seems to be affected by this.

Daily rates are better in the SUV category with several models performing well.

This is a market with a strong tourism draw during peak summer season, with key annual events throughout the year that will help with utilization. As a national business hub, business visitor utilization should be stronger here than in many markets.

The successful host in this market is going to choose their vehicles wisely, to fit the overall demand pattern, and with the smallest financial burden possible.

It’s going to be extremely important that the host in this market fully understand their business financials on a monthly basis and tightly control operating expenses.

A host in this market will likely need to employ self-driven marketing strategies at times throughout the year to maintain utilization and profitability.

Operating with All-Star metrics and offering delivery will enhance success in this market.