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HN: Looking to set up zipcar-like non-profit service for the poor.

8 points by Killah911 ↗ HN
I'm working with an post exit software entrepreneur(who's backing financially) to try to figure out a way to get transportation solution for the poor. Rather than just giving them a car, we're considering a free or significantly discounted zipcar like service. However to figure out feasibility we need to figure out what type of costs are involved.

Anyone on HN have any ideas on how something like this could be insured/infrastructure set up, or pitfalls to look out for?

We've got some donated cars, which have been fixed and "guaranteed" by the local Toyota dealership for free (great people). Now we just have to figure out the best possible way to expand such a program

8 comments

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notahacker
One of your biggest issues to iron out is who qualifies for access to the scheme (anyone poor enough to consider renting a donated car for a very low fee? That's probably a lot of people, even in the US). Then you've got to figure out how much you want to spend promoting the scheme to those people - assuming the economics of the scheme are such that marketing doesn't generate a positive ROI.

Another issue might be that the genuine poor who most need cars are those that use them - all day every day - to go to and from their low paid jobs. If you intend the cars to actually be shared you'll have to choose a way of addressing that.

Killah911
We've already figured out the qualification part. This non profit is under the umbrella of another non profit which already does case management for poor families who are at risk of homelessness, usually due to loss of job. One of the big burdens on some of these families is a car payment from a buy here pay here scammer.

We're working on emergency housing, in conjunction with some other non-profits, however, the transportation situation is still unresolved.

We also noticed that many of the these families are in a similar area and often work in close proximity to one another.

Ride sharing or car sharing would not only be a greener solution, but I personally feel, it would be a far more effective solution. It may help lift some of these families out of poverty as they can actually get to a job/school and what is generally a usurious car payment and full insurance can go into a fund to get some training or actually save up to get a car.

mdaniel
Or perhaps ZipCar isn't the business to emulate/disrupt but rather Lyft. I could imagine the poor getting a ride to their work much faster than the bus, and if it's faster that means more time with their children, more time for (or even the logistical ability to get) a second job, or hopefully more time to attend school. I could envision both outcomes: a service like Lyft that targets lower wage workers, or maybe even just subsidizing a Lyft membership.

The hazard I envision with ZipCar-lite is not only the monopoly the other commenter raised but also incidental costs (gas, accidents, etc) unless your plan is to subsidize those items, too.

Best wishes for your project, it could be great!

Killah911
Thanks, that's an excellent suggestion! With a Zipcar like situation, I was worried about insurance, accidents etc. However, if we were to do something like lyft, and get some people who get the donated cars be obliged to give fellow members a ride, that may lower the risk and amount of money needed to secure transportation for them.

I was even considering 12 passenger vans being given to one person who would get compensated for driving others to work on a daily basis. Thanks again for the suggestion

spenthil
Reminds me of American Cancer Society's "Road To Recovery" program: http://www.cancer.org/treatment/supportprogramsservices/road...

The American Cancer Society Road to Recovery program provides transportation to and from treatment for people who have cancer who do not have a ride or are unable to drive themselves. Volunteer drivers donate their time and the use of their cars so that patients can receive the life-saving treatments they need.

Killah911
I wonder how well something like that would work. Lyft is pretty popular in big cities but unheard of where I am. Reaching volunteer drivers sounds like a good idea, I guess we can experiment and see how much it costs to sign up a volunteer thru marketing the cause. Thanks for the info, I'll see if I can reach out to someone who is part of that program and see if I can get some pointers.
JayNeely
I think one of your big issues is going to be optimizing utilization. How can you get a single car to help as many people as possible? As notahacker mentioned, some people may need a car simply to get to and from a 8 - 9 hour shift. You don't want one person putting a car out of circulation for 10 hours. ZipCar works because it charges by the hour and keeps the cars idle in high-population, easy-to-reach areas.

Something to look into is how many people will have a smartphone. If not many (or for the ones who don't) I'd give them a cheap Android phone that does nothing but run your app. The phones can run on a group data plan (and like Republic Wireless' phones, WiFi whenever possible), and just be a more powerful kind of key fob that lets your members find, request, schedule, etc. cars. You could also use it as a key, requiring a password in the app to send a bluetooth signal that unlocks the car. I might also use these phones to connect to the cars' onboard computers whenever the car's in use, so that you can check fuel levels, engine status, etc. Some of that may be a bit further down the road -- you may want to go with more lowtech solutions while you get this up an running.

re: insurance and infrastructure, the best thing you can do is talk to people at ZipCar. You're not a threat to them, and they have the exact expertise you need.

Killah911
I was hoping maybe someone from ZipCar or Lyft would see the posting. I will take your advice and try to reach out to them directly. Believe it or not, the phone thing is a serious issue too. We had one family spending $169/mo on phone bill w/ 1200/mo in income. Maybe the ultimate solution would be somewhat of a combination of zipcar and lyft, since we don't anticipate charging for the car. (i.e. if you have one of our cars, you are somewhat obligated to give others a lift on your way). Thanks for the suggestions!