Carshare Market Guide - New York, New York

MARKET GUIDE NEW YORK, NEW YORK

CARSHAREACADEMY.COM

CARSHARE

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.

02

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 According to the United States Census Bureau, the population of New York City was approximately 8,175,133 in 2019. The city is made up of five boroughs: the Bronx, Brooklyn, Manhattan, Queens, and Staten Island. Each borough has its own distinct character and demographics.

In terms of age, the population of New York City is relatively young. The median age is 35 years old. The largest age group is 25-34, making up 22.5% of the population. The second largest age group is 35-44, comprising 19.4% of the population.

The largest racial group in New York City is Hispanic or Latino, making up 29.7% of the population. The second largest group is White, comprising 28.5% of the population. Black or African American and Asian are the third and fourth largest groups, making up 22.5% and 14.5% of the population, respectively. The remaining 5.8% of the population is made up of other races.

New York City is also a global city, with a large immigrant population.

Approximately 36.7% of the population is foreign-born, with the largest groups coming from Latin America and Asia. The top countries of origin for immigrants in New York City are the Dominican Republic, China, and Mexico.

In terms of education, 44.5% of the population of New York City over the age of 25 has a bachelor's degree or higher. The city is home to many prestigious universities and colleges, including Columbia University, New York University, and the City University of New York.

04

MARKET DYNAMICS MOBILITY CHALLENGES New York City is known for its iconic yellow cabs and bustling streets, but the city's transportation system also faces a number of challenges.

One major challenge is congestion. New York City has a population of over 8 million people and is a hub for tourism, business, and culture. This leads to heavy traffic on the city's roads and highways, particularly in Manhattan.

The congestion not only makes it difficult for people to get around, but it also contributes to air pollution and has negative impacts on public health.

Another challenge is the state of the city's public transportation system. The Metropolitan Transportation Authority (MTA) operates the city's buses, subways, and commuter trains, but the system has faced criticism for its aging infrastructure and frequent delays. The MTA has implemented a number of initiatives to improve the system, including modernizing subway cars and buses, but these efforts have been slow and costly.

There are also issues with accessibility for people with disabilities. Many subway stations and bus stops are not wheelchair accessible, making it difficult for people with mobility impairments to use public transportation.

The MTA has made efforts to improve accessibility, but there is still a long way to go.

Another challenge is the high cost of transportation in the city. New York City has some of the highest taxi and ride-sharing fares in the country, and public transportation can also be expensive, particularly for people who rely on it for their daily commute.

05

MARKET DYNAMICS TOURISM PATTERN New York City is one of the world's top tourist destinations, attracting millions of visitors each year. The city is known for its iconic landmarks, diverse neighborhoods, and rich culture, and there are a wide variety of attractions to appeal to different interests and tastes.

According to the New York City Mayor's Office of Media and Entertainment, there were approximately 65.2 million visitors to the city in 2019. The majority of visitors (57%) were from the United States, while the remaining 43% were from other countries. The top international markets were the United Kingdom, Canada, and China.

In terms of the types of attractions that visitors to New York City are interested in, the most popular are cultural and historical sites, followed by shopping, dining, and entertainment. The most visited attractions in the city include Times Square, Central Park, and the Metropolitan Museum of Art. There are also many events and festivals that draw tourists to the city, including the New York City Marathon, the Tribeca Film Festival, and the New York Fashion Week.

Tourism is an important contributor to the city's economy, generating billions of dollars in revenue each year. The industry supports a wide range of jobs, from hospitality and retail to cultural and entertainment.

Overall, New York City is a popular tourist destination that attracts a diverse range of visitors from around the world. The city's rich history, culture, and attractions make it a unique and exciting place to visit.

06

MARKET DYNAMICS KEY ANNUAL EVENTS New York City is home to a wide variety of annual events that attract visitors from around the world. These events range from cultural festivals and sporting events to food and drink festivals, and they showcase the city's diverse culture and history.

Here are some of the major annual events that take place in New York City: 1. New York City Marathon: This marathon is held every year on the first Sunday in November and is one of the largest in the world. It attracts over 50,000 runners from around the globe and takes place over a course that winds through all five boroughs of the city.

2. Tribeca Film Festival: This film festival is held every year in April and showcases the work of emerging and established filmmakers. It attracts celebrities and industry professionals from around the world and has become one of the premier film festivals in the country.

3. New York Fashion Week: This event is held twice a year in February and September and showcases the work of top designers. It attracts fashion industry professionals and celebrities from around the world and is a major event in the fashion calendar.

4. Macy's Thanksgiving Day Parade: This parade is held every year on Thanksgiving Day and is one of the largest in the world. It features floats, marching bands, and giant helium balloons, and attracts millions of spectators.

5. New Year's Eve in Times Square: This event is held every year on New Year's Eve and is one of the most iconic celebrations in the world. It features a giant crystal ball drop at midnight and attracts millions of people to Times Square to ring in the new year.

07

TURO INVENTORY OVERVIEW New York City is a new market for Turo, having just opened up for business in the summer of 2022. However, the NYC Metro area is wellestablished in New Jersey and Connecticut with a large inventory.

There is one Turo vehicle for every 3,400 metro residents compared to a typical vehicle ratio of about 1:1,800 in cities that are not major tourist destinations. Demand here is is driven heavily by both locals and visitors to the city.

Inventory in search results is spread across a large geographic footprint including the New Jersey side of the metro and the Hartford, Connecticut side of the metro.

KEY POINTS Demand in this market is very diverse with strong measurable demand for all categories and classes of vehicles.

Daily rates in the car category are slightly higher than other comparable markets.

In this category 72% of vehicles in the top five brands are priced below $100 per day with the $51 - $75 range holding the most inventory.

Daily rates are higher than other comparable markets in the SUV category. In this category 52% of vehicles are priced below $100, with the $101 - $150 range holding more inventory than other price ranges Cars outnumber SUVs by about 6% 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.

5,535

2,684

Total

Cars

2,514

185

SUVs

Minivans

57

95

Vans

Trucks

11

CAR 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.

106

554

Under $50/Day

$51 - $75/Day

347

232

$76 - $100/Day

$101 - $150/Day

48

110

$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.

9

192

Under $50/Day

$51 - $75/Day

333

359

$76 - $100/Day

$101 - $150/Day

86

39

$151 - $200/Day

Over $200/Day

12

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

13

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

Honda Accord

18

$72

$863

$1,295

$1,726

Toyota Camry

28

$72

$859

$1,288

$1,717

Nissan Altima

21

$65

$778

$1,167

$1,556

Mercedes C Class

15

$111

$1,330

$1,995

$2660

BMW 3 Series

20

$97

$1,158

$1,737

$2,316

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.

14

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

Tesla Model Y

15

$134

$1,607

$2,410

$3,213

Honda CR-V

20

$70

$843

$1,264

$1,685

Jeep Grand Cherokee

21

$97

$1,169

$1,753

$2,337

Toyota Highlander

20

$104

$1,253

$1,880

$2,507

BMW X5

20

$136

$1,631

$2,446

$3,261

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.

15

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

Toyota Camry Hybrid

3

$68

$812

$1,218

$1,624

Honda Fit

21

$62

$740

$1,110

$1,480

Mercedes SLC Class

3

$129

$1,548

$2,322

$3,096

Audi A8L

1

$223

$2,676

$4,014

$5,352

BMW i8

19

$302

$3,620

$5,430

$7,240

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.

16

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

8

$69

$833

$1,249

$1,665

Toyota CH-R

6

$76

$910

$1,365

$1,820

Honda HR-V

36

$73

$880

$1,320

$1,759

BMW X2

9

$102

$1,220

$1,830

$2,440

Tesla Model X

36

$222

$2,661

$3,992

$5,323

17

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.

19

CONCLUSIONS & RECOMMENDATIONS New York is a market with ample opportunity for new hosts and vehicles.

Though the New Jersey and Connecticut portions of the market are well established, New York proper now presents significantly untapped opportunity.

Overall, this appears to be a healthy market with strong booking activity and daily rates above average in both the car and SUV category.

The market also benefits from two peak seasons, one in the summer months from June through August, and a second peak in November and December due to nationally recognized and attended holiday events.

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.

This market is poised for growth, experiencing a growth rate of approximately 200 vehicles per week. This growth will likely continue in the coming years.

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