Contents · Web viewUse alternatives to travelling alone in own cars – pool cars, car sharing, walking, cycling and public transport Develop use of electric and hybrid vehicles

Proposal for Car Club Demonstration Project Funding – Derbyshire

Application for: Establishing a new car club in Derbyshire

Fund: Car Club Demonstration Project Fund

Key Contact: Mark Armstrong-Read (Derbyshire Community Health Services NHS Foundation Trust)Tel: 01246 515581Mob: 07917 106296E-mail: [email protected]

Partners Organisations: Chesterfield Borough Council Town Hall, Rose Hill, Chesterfield, Derbyshire, S40 1LPChesterfield Royal Hospital Foundation Trust

Calow, Chesterfield, Derbyshire, S44 5BL

Derbyshire Community Health Services NHS Foundation Trust

Walton Hospital, Whitecotes Lane, Chesterfield, Derbyshire, S40 3HW

Derbyshire County Council County Hall, Matlock, Derbyshire, DE4 3AGPeak District National Park Authority

Aldern House, Baslow Road, Bakewell, Derbyshire, DE45 1AE

Co-wheel Car Club The Lodge, Redhill, Durham, DH1 4BD

Partner commitments to this projectThe lead partner for this proposal is Derbyshire Community Health Services NHS Foundation Trust (DCHS) working with Co-wheels Car Club.

DCHS will be using the cars for business purposes. Chesterfield Borough Council and Chesterfield Royal Hospital will use the cars for business purposes as a trial with a review at the end of the project. Peak District National Park Authority currently has its own in-house pool fleet, but could use the cars on an ad-hoc basis when its own cars are fully booked. It will review the outcomes of this project with a view to potential use in the future. Derbyshire County Council (DCC) is not yet in a position to consider using the cars for business purposes; DCC use of the cars for business journeys in the future could be considered via any procurement process undertaken to provide pool vehicles to its employees. However, it fully supports the public car club and will work with the other partners to promote the car club to Derbyshire businesses and to their own staff for private use.

Proposal for Car Club Demonstration Project Funding – Derbyshire Page 1 of 20

mailto:[email protected]

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With regard to the public car club, all the partners are fully committed to supporting the rollout of a public car club and will be providing in-kind support to promote the car club to its staff, residents, businesses and visitors in line with their travel, and other core, strategies and plans. Chesterfield Borough Council have agreed to support in the provision of parking sites in its own car parks or to support finding suitable alternative parking with local businesses where this may be the better option. This support is of particular value due to the number of vehicles which are being proposed to be sited in Chesterfield.

To signal the commitment of the partner organisations, agreement to this proposal has been obtained by senior leaders for each organisation:

For Agreed by PositionChesterfield Borough Council

Huw Bowen Chief Executive Officer

Chesterfield Royal Hospital Foundation Trust

Steve Hackett Director of Finance

Derbyshire Community Health Services NHS Foundation Trust

Tim Broadley Acting Director of Strategy

Derbyshire County Council Supported by transport team, agreement to be confirmed by Assistant Director after discussing with Elected Member, but unable to in time for deadline

Peak District National Park Authority

Philip Naylor Head of Finance

Co-wheel Car Club Pierre Fox Director

ContentsSummary of project...........................................................................................................................3Alignment with partners’ strategies and plans..................................................................................3Key outputs/deliverables & measurement of success......................................................................5Budget..............................................................................................................................................6Programme of work – car club set up and launch period..................................................................8Car Locations................................................................................................................................... 9Marketing Plan................................................................................................................................10Risks and mitigations......................................................................................................................10Potential development opportunities...............................................................................................11References and evidence of project delivery..................................................................................12Reference Documents....................................................................................................................13Other Information............................................................................................................................13Appendix A – Details of feasibility study.........................................................................................14Appendix B – Analysis behind project targets................................................................................15Appendix C – Low recruitment target.............................................................................................16Appendix D – Demographic and business use analysis.................................................................18Appendix E – Marketing plan details..............................................................................................19


Summary of projectIt is estimated public sector organisations travel 1.4 billion business miles per year which offers a huge opportunity for car clubs. The partners in this bid are aiming to create a car club model for rural counties that would be replicable across the country and take advantage of this opportunity. A request is therefore made for £85,000 of funding with the aim to establish a new Car Club in Derbyshire. This will build on a small current project with Derbyshire Community Health Services (DCHS) which uses Co-Wheels to provide pool cars for business use and some private use to its staff. DCHS is committed to providing at least £30,000 of additional funding through its use of the cars.

This proposal shows that, if awarded the funding, this partnership is ready to start implementation immediately, with a launch of the car club in early January 2015.

The current fleet of 10 vehicles is used as pool cars based on five community hospital sites across Derbyshire and consists of 9 low emission petrol and diesel cars and 1 electric vehicle. These cars are not currently marketed to the general public and so no car club exists in Derbyshire. This project would expand this current fleet to 20 vehicles to cover more sites across Derbyshire, use it to kick start the establishment of a public car club and integrate this with expanded business use of the vehicles.

By combining an expansion of business use and public car club use higher vehicle utilisation will be achieved, allowing sharing of costs and hence a lower cost to both business and public users.

The partners in this project have a record of working together to deliver similar related projects, including having worked together on a car club feasibility study earlier in 2014 funded by Innovate UK (formerly the Technology Strategy Board), successfully meeting very tight deadlines and proving that a car club could be successful in Derbyshire – see Appendix A.

Alignment with partners’ strategies and plansThe partner organisations in this project have met regularly for a number of years to help and support each other in sustainable travel initiatives, share good practice and resources where possible and look at ways to work together for mutual benefit.

The Carplus annual surveys show that car clubs have a number of benefits to support local travel strategies and plans. Car club membership encourages more use of public transport and active types of travel and they support reduced car ownership and mileage travelled by car. In addition, car clubs are increasing the number of electric or hybrid vehicles in their fleets and the average carbon emission of car club vehicles is lower than the national average and continues to fall. These benefits are all relevant to the partner organisations as seen below.

Derbyshire County CouncilDerbyshire County Council’s Local Transport Plan explicitly states among its key messages that its transport plan must:

Mark a path towards more sustainable travel habits e.g. walking, cycling and using public transport (bus and rail), to reduce carbon dioxide emissions and benefit personal and public health

Ensure that Derbyshire people who do not have access to a car (over 110,000 in the 2001 census, nearly 51,000 pensioners, and over 71,000 households) are able to access services and facilities


In addition, among its key transport and investment priorities it includes “Improving local accessibility and achieving healthier travel habits” through:

Minimising disruption from public transport service cuts Providing access to work, education and training Improving rural accessibility

Chesterfield Borough CouncilChesterfield Borough Council Core Strategy has a number of key policies. Included in these is “CS20 Influencing the Demand for Travel” which states:

To reduce congestion, improve environmental quality & encourage more active & healthy lifestyles, the Council will seek to maximise walking, cycling & use of public transport through the

location and design of development & parking provision. Priority will be given to measures to encourage more sustainable travel choices.

To secure this aim, the council will expect development proposals to demonstrate the following:a) Prioritisation of pedestrian and cycle access to and within sitesb) Protection of, or improvements to the strategic pedestrian and cycle networkc) Demand management measures such as car clubs, car sharing and appropriate parking

provisiond) Protection of, or improvements to public transport provision and/or facilitiese) Provision of opportunities for charging electric vehicles where appropriate

Peak District National Park AuthorityThe Peak District National Park Authority Core Strategy outlines some of the challenges it faces:

“As in most rural areas, people are largely car-dependent and public transport services are limited & fragile. The level of access to essential services by walking or public transport is reasonable for most communities, but car ownership in the National Park is, of necessity, above average and few people need to rely on buses or trains. However the trend is towards service loss rather than gain, so accessibility could worsen and the need for car usage could increase, most worryingly amongst those least able to afford regular use of a car. For those needing or preferring to travel by public

transport, the service is patchy and it is not generally good enough to discourage car use.”

The following extracted objectives are included within its core strategy: T1: Reducing the general need to travel and encouraging sustainable transport T7: Minimising the adverse impact of motor vehicles and managing the demand for car and

coach parks

As well as the council strategies, Derbyshire Community Health Services and Chesterfield Royal Hospital also have sustainable travel strategies which this project would support.

Derbyshire Community Health ServicesThe DCHS Sustainable Travel Plan clearly highlights the need for using pool cars which can be provided by this project:

“Our preferred option for achieving our sustainable travel strategic goals is to shift from physical travel for meetings and patient contacts to telephone or online contacts. Where travel is

necessary, the travel options available should support staff to make the most sustainable choice for any potential journey. Where possible we wish to incentivise a shift to the most sustainable options (e.g. teleconferencing/pool cars). In order to achieve the strategic goal of providing low


carbon options, we intend to look at ways to increase the use of electric and hybrid electric vehicles as part of our fleet offerings – lease cars, pool cars and estate/hotel services vehicles.”

DCHS Key Actions include the following relevant actions: Use alternatives to travelling alone in own cars – pool cars, car sharing, walking, cycling

and public transport Develop use of electric and hybrid vehicles including charging infrastructure Improve Duty of Care for staff:

o Provide alternatives to grey fleet such as lease, pool and hire cars o Consider putting a limit on vehicle age and cars which do not meet NCAP 4 star

safety rating or above

Chesterfield Royal Hospital Foundation TrustChesterfield Royal Hospital is committed to encouraging the transport sustainability of its sites, including providing practical travel options for its staff, patients and visitors. The aims of the Chesterfield Royal Hospital Travel Plan are to:

Encourage staff, patients and visitors to travel to the hospital via the most sustainable method

Encourage and promote a healthier more active life by showing benefits to the environment and financially to the individual

Promote the social aspects of sustainable transport for all groups of society by inclusion with local authorities and local communities, to provide a fully integrated transport system

The overall Objectives of the Travel Plan are to:- Maximise the sustainability of Chesterfield Royal Hospital Provide practical travel options for staff, patients and visitors

Key outputs/deliverables & measurement of successKey outputs from this initiative at the end of September 2015 would be a viable car club clearly moving towards being self-sustaining by showing:

An established car club with 20 cars Car club membership numbers of over 200 and increasing Average business mileage of 8,500 per month and increasing

Proposed targetsTarget numbers are actually difficult to predict due to the nature of the project. However a review of car clubs in Scotland has provided some basis for identifying potential levels of membership growth. Current business use by DCHS has provided some idea of potential business use. A financial model developed by DCHS and Co-wheels provides evidence of numbers required for viability of the new car club. Appendix B provides analysis behind the numbers in this section.

Target business mileage: 500 miles/car/month by end of year 1 (equal to 6,000/year)

Target car club public membership numbers: Low target: 1 per month per car (12 per year)Mid target: 1.5 per month per car (18 per year)High target: 2 per month per car (24 per year)


Initially the car club would start with the current 10 cars, but the proposal is to increase the number of cars early in the project (month 3) to 20 cars.

Using the analysis in Appendix B, 19 members per car would need to be recruited to ensure the car club is self-sustaining beyond the first 12 months of the project and therefore the mid target for recruitment of 1.5 members per month per car would need to be hit.

If the low target is hit (1 member per car per month), this would mean the income would only be sufficient to break even on the cars after 12 months, but not cover the additional costs. However, if the level of recruitment continued at the same rate the self-sufficient level could be reached in month 18.

If a higher level of recruitment is achieved this would enable the car club to expand at a faster rate by introducing more vehicles and/or locations and increase the development worker time and marketing activity levels.

BudgetThe figures provided in the previous section have been used to prepare a cash flow and budget forecast. In this budget it is assumed the additional 10 cars would be available from early March 2015 (Month 3). The table on the next page shows the cash flow and balance of the budget based on hitting the mid target of 1.5 members per month per car.

This shows that £85,000 funding would allow the car club to end the year self-sufficient and with a £16,000 buffer if the 1.5 members/month target is hit. If this was achieved then the additional funding could be used to expand the car club into new areas.

Alternatively, this funding would provide a risk fund for the car club during its initial stages should the required level of recruitment not be achieved. The funding would allow the car club to still continue even if the membership recruitment level was lower than planned. Appendix C shows the effect of missing the mid target, but hitting the low target of 1 member per month per car; this shows the need for a risk fund as the car club becomes self-sufficient by Month 18 even with this lower recruitment level.


Mid Target – 1.5 members per month per carCosts Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

No. of cars 0 10 10 20 20 20 20 20

Car costs £3,500 £3,500 £7,000 £7,000 £7,000 £7,000 £7,000 £7,000

Fuel costs £650 £728 £949 £1,170 £1,391 £1,612 £1,833 £2,054

Driver checks £250 £250 £400 £400 £400 £400 £400 £400

Development worker £1,350 £1,350 £1,350 £1,350 £1,350 £1,350 £1,350 £1,350

Marketing and promotion £2,000 £2,000 £2,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000

Telematics installation £0 £16,250 £0 £0 £0 £0 £0

Mark out parking areas for new cars £0 £5,000 £0 £0 £0 £0 £0

Total Monthly Costs £2,000 £7,760 £29,088 £10,719 £10,940 £11,161 £11,382 £11,603 £11,824

Income Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8

Car Plus £85,000 £0 £0 £0 £0 £0 £0 £0

DCHS £2,520 £2,520 £2,520 £2,520 £2,520 £2,520 £2,520 £2,520

Car Club members £0 £375 £1,125 £1,875 £2,625 £3,375 £4,125 £4,875

Additional business mileage £0 £0 £210 £420 £630 £840 £1,050 £1,260

Total monthly Income £85,000 £2,520 £2,895 £3,855 £4,815 £5,775 £6,735 £7,695 £8,655

Net Cash Flow £83,000 -£5,240 -£26,193 -£6,864 -£6,125 -£5,386 -£4,647 -£3,908 -£3,169Balance £83,000 £77,760 £51,567 £44,703 £38,578 £33,192 £28,545 £24,637 £21,468

Based onAdditional car club members in month 15 15 30 30 30 30 30

Total car club membership 0 15 45 75 105 135 165

Total car club membership mileage 0 600 1800 3000 4200 5400 6600 7800

DCHS mileage per month 5000 5000 5000 5000 5000 5000 5000 5000

Additional business miles per car 0 0 50 100 150 200 250

Additional business miles all cars 0 0 500 1000 1500 2000 2500 3000

Total mileage per month all cars 5000 5600 7300 9000 10700 12400 14100 15800

Members recruited per month per car 1.5 Income per member per month (£300 per year)

Average cost of fuel per mile £0.13 Income per business mile


Programme of work – car club set up and launch periodThe car club will be launched January 2015 with the current 10 cars, becoming fully live with 20 cars early March. New sites will be off street (i.e. in partner organisation car parks or other off street locations) to reduce set-up time & cost. Actions in March to September will consist of ongoing operational activities, and marketing activities as outlined in the Marketing section of this proposal, so are not shown on the schedule here.


Car LocationsThe work with Steer Davies Gleave outlined in Appendix A investigated the integration of demand for transport at work, at home and for commuting and looked at the potential for it to be met by cars that are used as:

Pool cars located at work during the day Car club cars located in separate residential areas and at train stations in the evenings and

at weekends By commuter groups, which would relocate the cars between these locations

The third of these bullet points is not relevant to this proposal, but the data on pool car and home locations is. Data for that report was provided by the organisations involved in this current proposal and was used to identify locations for pool cars, car club cars and commuter groups. Appendix D provides more detail of this investigation.

From this investigation, the proposed locations of 20 cars for this project are shown on the map below and made up of (number of cars in brackets):Current locationsChesterfield (3)Belper (3)Clay Cross (2)Buxton (1)Darley Dale (1)

Potential new locationsChesterfield – additional cars (5)Buxton – additional car (1)Alfreton and South Normanton (2)Matlock (2)


3

2

11

1

2

8

2

These new locations will increase the density of cars within the North East Derbyshire area allowing more choice for members if their nearest car is unavailable. Additional cars are suggested in Chesterfield to increase availability across the town, as it is the largest town in the proposal (at more than 70,000 residents). An additional car has been suggested for Buxton as it is also a large town (over 20,000 residents) and includes a branch of Derby University. Alfreton and South Normanton have been included as they are adjacent to each, Alfreton is ranked No.1 in the analysis for car club potential in towns of this size and both have NHS and council partner sites in them. Matlock, similarly, has partner organisation sites in them and are close to current locations.

Marketing PlanWhere appropriate, the car club will be marketed by partner organisations, internally to staff and externally to businesses and visitors to the area, using existing resources and communications channels, so the substantial part of the funding would be used to establish and market the external public car club.

The marketing plan created as part of the feasibility study details the most effective media, marketing tools and tactics Co-wheels could employ during a new car club rollout. Again, this plan was developed for the wider feasibility study to include commuting across a wider geographic area, but the general background information and many parts of that plan are still applicable to this smaller proposal without commuting. If the partners are successful in winning funding from Innovate UK next year for the development of the commuting element then the wider marketing plan could be reviewed and implemented within that funding.

The marketing study during the feasibility project carried out a full SWOT, PEST and competitor review and looked at branding issues. It went on to analyse consumer profiles including analysis of consumer behaviour and web traffic demographics for current Co-wheels users. This enabled a web strategy (including a search engine optimisation strategy) to be developed as part of the marketing plan. Included in the marketing plan was a full ‘route to market’ plan; as part of this project the following marketing will be used:

Product Placement including attendance at local family events Direct mail Payslip and internal magazine advertising in partnership organisations Marketing to students and general digital marketing Marketing within partner organisations Business marketing and networking

Further detail is provided in Appendix E.

Risks and mitigationsRisk Likelihood ImpactDCHS or Co-wheels pulls out of project

Unlikely High Both organisations are dedicated to this project, as they have worked together for over two years and have the same vision for shared use of vehicles. If Co-wheels did pull out it would be difficult to continue with the project unless another car club provider could be found and the cars transferred. If DCHS pulled out, Co-wheels could potentially find new locations for the cars and continue with the project.

Other partners pull out of

Unlikely Low The other partners in the project are committed to the project, but do not have the same level of resources


project invested and do not currently have any vehicles on their sites. This means that although the project would be weaker without their support the impact would be much lower than if Co-wheels or DCHS pulled out.

Loss of key personnel

Possible Medium The key personnel are within Co-wheels and DCHS as the key partner in the pool cars. Both organisations are dedicated to this project so if a key person within either team moves on the remaining members of the team will be able to cover until a replacement is appointed. There may be some disruption while this takes place

Low take up of car club membership and/or business use

Possible High Low take-up of membership or business use would make it difficult for the car club to become viable. Further marketing ideas would need to be explored and additional resources (people or money) may need to be invested in the project. A review of whether the cars are located in the correct areas would also need to be carried out.

Can’t find appropriate places ‘on the ground’ to locate the cars or can’t get permission to use best locations

Low Low It may not be possible to find an appropriate place on the ground in the preferred locations or to get permission from the appropriate owner or authorities to use the preferred location. However, given the support of the partner organisations and the number of potential places a car can be located this is not expected to be a problem. If an appropriate location cannot be found, then the analysis carried out in the feasibility study has identified many other potential areas that can be tried instead, which means the impact would be low.

If car club unviable at end of year, costs will be incurred to wind up operations

Possible Low Lease cars may need early termination. The leases on seven of the cars currently in the pool fleet end towards the end of 2014, so no termination charges will apply; two cars are leased by DCHS, so these would continue, one lease is towards the end of its contract so early termination is minimal. For the remaining 10 cars that would be newly leased for this project early termination could be approx. £600 per car. However, due to the number of cars in the Co-wheels fleet, these cars would be moved to replace a car nearing the end of its lease. This means there would be no penalty fee or a minimal fee for the car which is replaced to be given up.

Development worker will be on 1-year contract, so no cost implication; drivers will be on pay-as-you-go, so no refunds will need to be paid.

Potential development opportunitiesRoll out to more rural areasOnce established, the idea is to expand provision of car club vehicles to other smaller towns and villages across Derbyshire. As demand increases and income rises these additional cars could be funded through a measured expansion using the information on best locations from the feasibility study. Potential ability to commute in the vehicles could accelerate this process – see below.


Addition of Commuting ProvisionAs already mentioned, the partner organisations are pursuing further funding from Innovate UK for development of the IT infrastructure and software behind car club technology to allow more flexibility in locating cars and booking them. The key element of this funding bid would be to enable commuting in car club vehicles which would enable them to be relocated on a daily basis. Cars would then be available evenings and weekends in areas where people live, but during the working week they would be used to commute to places of work, effectively relocating them daily to areas where they are available to use as pool cars. This development could substantially increase the utilisation of cars, enabling them to be located in quite small rural villages evenings and weekends and still be viable. This requires substantial software development and the Innovate UK funding would provide this.

Electric VehiclesThe office for Low Emission Vehicles (OLEV) is about to launch a second phase of funding which would allow wider public sector organisations to bid for funding for electric vehicle infrastructure and vehicles. The partner organisations in this project have already registered interest in this funding. If funding is achieved then this should enable the partner organisations to install a number of electric charging points across the county. In addition, if allowed, funding may be used to provide vehicles which could be included in the Co-wheels fleet as part of the pool fleet, but also made available for public use. This would enable a proportion of the vehicles in this project to be electric. Even if that funding cannot be used to cover the Co-wheels fleet vehicles, just having the infrastructure in place allows the option for this project to obtain its own electric vehicles instead of internal combustion vehicles as additional vehicles.

Although these potential development areas would greatly enhance this project, this proposal does not require these in order to succeed and has been written on the basis of a stand-alone initiative.

References and evidence of project deliveryInnovate UK Feasibility Study SuccessAppendix A outlines a feasibility study successfully completed by the partner organisations during 2014. This study was funded by Innovate UK (formerly the Technology Strategy Board), had a strict 3-month time limit and Co-wheels and DCHS were lead partners on this. The project started on 1st May and delivered the final report by the deadline on 31st July.

Reference is available from Chris Marshall, Consultant and Monitoring Officer for Innovate UK: Tel 07904 459741 or e-mail [email protected].

Gateshead Car Club Delivery by Co-wheelsGateshead council have been using Co-wheels to provide and manage corporate pool cars for over 3 years. There are currently 9 cars based at Gateshead Civic Centre. This includes 3 electric vehicles. The cars are accessible by the general public for use out of hours. The scheme has been a great success and currently has 437 registered drivers

Reference is available from Caroline Shield, Team Leader for Transport Policy, Research and Development, Transport Strategy Service, Gateshead Council, Tel: 0191 433 3084 or e-mail [email protected]




DCHS and Co-wheels Pool Cars in DerbyshireDCHS and Co-wheels already have a track record of working together to set up the current pool car fleet in Derbyshire. This fleet was operational in December 2012 with a view to expansion as funding became available. The original business case identified the potential for the cars to be used by a public car club and DCHS and Co-wheels have been working together to find ways to bring this about. DCHS is fully committed to this expansion into a full public car club in order to secure the benefits of a joint car club/pool car resource for the future. The NHS Sustainable Development Unit has shown an interest in this by publicising it as a case study http://www.sduhealth.org.uk/resources/case-studies.aspx.

Electric Car at Clay Cross HospitalThis was a smaller initiative between some of the partner organisations. It has always been an aim to get an electric car on the fleet and this was made possible earlier this year as some funding became available from OLEV for a charge point. This only covered 75% of the cost, but Derbyshire County Council was able to fund the additional 25% to enable a fast charger to be installed at DCHS’s Clay Cross Hospital site. Co-wheels then provided an electric car at a reduced rate through other sources of funding to enable one of the current pool fleet cars to be replaced with a Nissan Leaf.

Reference DocumentsInternal/Partner Organisation DocumentsCo-Wheels Car Club Enhanced Corporate & Public Vehicle Sharing Initial Marketing Feasibility, Creation Media, July 2014Identifying Pool, Commuting and Car Club Car Locations and Commuters, Steer Davies Gleave, July 2014Derbyshire Local Transport Plan 3 2011-2026, Derbyshire County Council, 2011Local Plan: Core Strategy 2011-2031, Chesterfield Borough Council, 2013Peak District National Park Local Development Framework: Core Strategy Development Plan, Peak District National Park Authority, 2011Derbyshire Community Health Services Sustainable Travel Plan, Derbyshire Community Health Services NHS Trust, 2014Chesterfield Royal Hospital Travel Plan Issue 3, Chesterfield Royal Hospital NHS Foundation Trust, 2012

ExternalCarplus Annual Report 2013/14, Steer Davies Gleave, 2014Developing Car Clubs in Scotland Programme Review 2010-2012, Carplus, 2012

Other InformationDisclaimer: This proposal does not provide any commitment from any of the partners, either financially or otherwise, beyond what has explicitly been stated within this proposal.

Note: The partners are aware that Derby City Council is also proposing a bid for funding to establish a car club in the city. Details of the two bids have been shared and discussions have taken place around how these two schemes could complement each other should they both be successful and able to use the same car club provider.


http://www.sduhealth.org.uk/resources/case-studies.aspx

Appendix A – Details of feasibility studyCo-wheels and DCHS partnered with Dreamtek (an IT company) on a feasibility study looking at how to integrate pool cars, car clubs and commuting in order to increase utilisation of Car Club vehicles. Derbyshire County Council, Chesterfield Borough Council, Peak District National Park Authority and Chesterfield Royal Hospital also supported this project, either through their involvement with providing information, helping with analysis and/or agreeing to develop this further if successful in the next round of funding.

To include commuting using car club vehicles requires a major investment in IT software and hardware development. The feasibility study was conducted as the first part of a two stage process with funding from Innovate UK (formerly The Technology Strategy Board). Stage two of that process is due to start early next year with further funding to be made available for winning bids to move to an in-field trial of the proposed studies from the first stage. DCHS, Dreamtek and Co-wheels will be bidding for this stage two funding to enable development of the IT system. Such a development would be able to build on this current proposal for a new car club in Derbyshire by enhancing the offer to members and businesses by allowing commuting in the vehicles. In this way funding provided by Carplus to initially develop this car club would be leveraged by further funding from Innovate UK should the bid be successful in that funding stage.

As part of the feasibility study DCHS and Co-wheels worked with Steer Davies Gleave to create a full report showing the best locations for vehicles for both pool cars and private use. In addition a full marketing strategy and plan were developed by a company called Creation Media.

The information within those reports is valid for this current proposal and the supporting information in this proposal comes from these reports. The location report (14 pages + online maps) and full marketing plan (99 pages) can be made available if requested.


Appendix B – Analysis behind project targetsCar Club Membership NumbersThe following graph shows growth in car club membership in new car clubs in Scotland.

Source: Developing Car Clubs in Scotland Review 2010-2012, Carplus 2012

The Developing Car Clubs in Scotland Review shows that a new car club in Aberdeen with 12 vehicles gained 315 new members in 6 months; Dundee had 3 cars and gained 66 members over a similar period; Fintry Energy Efficient Transport (FEET) is located in a small, comparatively remote, rural community with around 700 residents and had 2 cars with 24 members after about 1 year in operation; WestWheels, based in a comparatively remote rural community on the west coast of Scotland, had 2 vehicles and 46 members after about a year in operation.

Derbyshire, in which this car club will be established, has many similarities with Scotland as it is rural in many parts, but has the advantage of a number of larger towns such as Chesterfield, Matlock, Clay Cross, Belper and Buxton. It is therefore possible to use the experience of Scotland to provide some idea of potential car club membership numbers. Membership recruitment is unlikely to be as rapid as seen in Aberdeen, but should initially be higher than in the rural communities of Scotland, as the initial target in Derbyshire will mainly be the larger towns. Figures from the Scotland review show:

Rural communities 180 members in 18 months – 10/monthDundee 66 members in 6 months – 11/monthAberdeen 315 members in 6 months – 52/month

As the rural car club membership recruitment appears to climb relatively linearly an assumption of 60 members in 6 months could be estimated for rural areas. This means a total recruitment of approximately 440 over a 6 month period for the rural communities, Aberdeen and Dundee collectively. As the review said there were 35 new cars added in these clubs this would give an average membership of 12.6 members per car during those 6 months. As numbers appeared to


still be rising (less so in Dundee) it can be estimated that after 12 months the numbers per car are likely to be higher than 12.6.

Target ModellingCo-wheels and DCHS have done full modelling of potential costs and target activity, based on DCHS current use of cars and Co-wheels average membership activity, costs and income from its wider fleet of cars. This modelling is commercial in confidence, so not given in detail here. However the following figures show the output from this detailed modelling.

Based on a typical Co-wheels member and including business mileage income (see below), the number of active car club members to break even on each vehicle is 10.3. However it is acknowledged that some members would not be active, so a higher number of members is required. Assuming 80% of members will be active, the target number of members per car to break even would be 13.

However, this break even only covers the cost of the cars and does not provide for a development worker, marketing, promotional costs, etc. To be a viable car club in the future the income would need to also provide funding for these elements.

Each additional Co-wheels member is estimated to provide an income of £300 per year. If it is assumed the additional costs including a development worker (half time) for an ongoing car club are £28,000 per year, this would require an additional 94 active members (or 120 members assuming 80% of them are active). As this project intends to have 20 cars this would be equate to 6 members per car.

This therefore gives a target of 19 members per car (13 to break even + 6 to cover additional supporting elements).

This level of membership recruitment appears feasible compared to the results seen above from Scotland.

Business MileageIn the above modelling, business use is assumed at 6,000 miles per car; it will be charged at 35p per mile + VAT (42p per mile)

DCHS currently uses the cars for business use. Analysis has shown the average use per car is 6,000 miles per year. This has stayed steady at this rate for a number of months and so is used as a basis for estimating business use for any future cars. However, it is believed that as more businesses start to access the cars this utilisation could increase as patterns of usage will vary. For example, cars are used by DCHS considerably more on Tuesday, Wednesday and Thursday. This is likely to be because many DCHS staff work part time, taking either Monday or Friday as their days off. Other business users may not have this pattern of work and so bookings for Monday and Friday could increase.

However, for purposes of stating key deliverables this project will use this DCHS average of 6,000 miles per year per car for estimating future business use.

Appendix C – Low recruitment targetThe table on the next page shows the effect of missing the recruitment target of 1.5 members per car per month, but hitting a target of 1 member per car. It shows the need for £85,000 funding to provide a ‘risk fund’ as the balance drops to less than £1,000 before starting to recover.


Low Target – 1.0 member per month per carCosts Month 0 Month 1 Month 2 Month 3 Month 4 Month 14 Month 15 Month 16 Month 17 Month 18

No. of cars 0 10 10 20 20 20 20 20 20 20

Car costs £3,500 £3,500 £7,000 £7,000 £7,000 £7,000 £7,000 £7,000 £7,000

Fuel costs £650 £702 £871 £1,040 £2,600 £2,704 £2,808 £2,912 £3,016

Driver checks - 10 bus. Drivers + public £200 £200 £300 £300 £300 £300 £300 £300 £300

Development worker £1,350 £1,350 £1,350 £1,350 £1,350 £1,350 £1,350 £1,350 £1,350

Marketing and promotion £2,000 £2,000 £2,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000 £1,000

Telematics installation £0 £16,250 £0 £0 £0 £0 £0 £0 £0

Mark out parking areas for new cars £0 £5,000 £0 £0 £0 £0 £0 £0 £0

Total Monthly Costs £2,000 £7,710 £29,012 £10,541 £10,710 £12,270 £12,374 £12,478 £12,582 £12,686

Income Month 0 Month 1 Month 2 Month 3 Month 4 Month 14 Month 15 Month 16 Month 17 Month 18

Car Plus £85,000 £0 £0 £0 £0 £0 £0 £0 £0 £0

DCHS £2,520 £2,520 £2,520 £2,520 £2,520 £2,520 £2,520 £2,520 £2,520

Car Club members £0 £250 £750 £1,250 £6,250 £6,750 £7,250 £7,750 £8,250

Additional business mileage £0 £0 £210 £420 £2,100 £2,100 £2,100 £2,100 £2,100

Total monthly Income £85,000 £2,520 £2,770 £3,480 £4,190 £10,870 £11,370 £11,870 £12,370 £12,870

Net Cash Flow £83,000 -£5,190 -£26,242 -£7,061 -£6,520 -£1,400 -£1,004 -£608 -£212 £184Balance £83,000 £77,810 £51,568 £44,507 £37,987 £2,107 £1,103 £495 £283 £467

Based onAdditional car club members in month 10 10 20 20 20 20 20 20 20

Total car club membership 0 10 30 50 250 270 290 310 330

Total car club membership mileage 0 400 1200 2000 10000 10800 11600 12400 13200

DCHS mileage per month 5000 5000 5000 5000 5000 5000 5000 5000 5000

Additional business miles per car 0 0 50 100 500 500 500 500 500

Additional business miles all cars 0 0 500 1000 5000 5000 5000 5000 5000

Total mileage per month all cars 5000 5400 6700 8000 20000 20800 21600 22400 23200

Members recruited per month per car 1.0 Income per member per month (£300 per year) £25

Average cost of fuel per mile £0.13 Income per business mile £0.42

Appendix D – Demographic and business use analysisThe feasibility study looked at pool car locations based on information on business mileage claimed from different sites across Derbyshire from partner organisations; most of the organisations were also able to provide information on staff home locations to allow potential private use by staff to be determined.

In addition, the study did a full analysis to determine the best locations for Car Club cars for public use. Analysis was undertaken for each settlement across the county. The factors considered for analysis of residential demand were:

Factor Source Effect on car club demandIndex of population propensity to join a car club

Co-wheels Mosaic data High propensity to join a car club increases demand

Proportion of travel to work by car

Census 2011 High proportion travel to work by car increases demand for a car club of this type

Proportion of residents with a degree or higher qualification

Census 2011 Higher levels of qualifications typically increases demand

Access to goods and services without a car

Index of Multiple Deprivation 2010

Higher levels of access to services without a car typically increases demand

From the analysis, the report was able to provide a ranked list of potential locations for car club cars and pool cars. By using these lists for the current proposal it is possible to identify the best potential locations for joint car club and pool car use. Settlement size band (population) Rank Settlement50000+ 1 Chesterfield/Staveley

20000-50000 1 Alfreton Urban Area (inc. South Normanton)20000-50000 2 Belper20000-50000 3 Buxton20000-50000 4 Swadlincote/Donisthorpe20000-50000 5 Clay Cross/North Wingfield

10000-20000 1 Bolsover10000-20000 2 Shirebrook10000-20000 3 Matlock

This table shows part of the rankings for potential car club use with the locations selected for this project highlighted in bold. Additional cars will be located in Chesterfield and Buxton in order to achieve a greater coverage and reduce the distance people would need to go in order to pick up a vehicle. Cars are already available in Clay Cross and Belper due to the current pool car scheme. Alfreton and Matlock have been selected as new locations. These new locations have been selected not only because of their high rankings on the potential car club use, but also from the analysis as areas where there is likely to be higher business demand, including from the partner organisations.


Appendix E – Marketing plan detailsThe Summary objectives within the marketing plan developed for the feasibility study included:

Generate minimum 20 new members to use each pool car 6 times within a 12 month period Increase awareness of the schemes available to target demographics with branded holistic

message that changes attitudes to car ownership and usage Increase membership of shared pool cars

Relevant elements of that plan for this current proposal are listed below.

Product Placement Product Placement is a great way to get the brand in front of our audience, generate data-capture and to spread a holistic message to people by being part of their day. It’s non-confrontational and allows us to educate our audience. Attending events within close proximity of each other allows us to make an impact on the Derbyshire area and generate a bit of frequency to regular show-goers so we have more impact.

We have identified a number of local family events in Derbyshire, including: Derbyshire County Show Derbyshire Food Fair Festival Of Leisure Chesterfield Arts & Market Festival Barrow Hill Rail Ale Festival BASC Gamekeepers’ Fair Darley Dale Transport & Country Show Ashbourne Shire Horse Society Show Bakewell Music festival Bakewell Spectacular

Other opportunities which exist at shows and events: Brand Exposure and education Competent Co-wheels Ambassadors talk to traders and customers to educate them on this

new offering Exhibit a branded car with full car livery Event web-link’s and dual branding help with local geographical online exposure during and

in build up to the event Opportunity to message out during the event Post event marketing follow up to generated data

Direct Mail – Solus Door Drops – Mass locations 35% of recipients have responded to a door drop in the last 12 months. A Door to Door service goes right to the front door of our perfect customer. This is perfect for targeting close to car club locations convenient to the user. Drops should have a pre-arranged schedule that manages the campaign more efficiently, spreading out response so they don’t all come at once. The campaign should be evaluated and include call tracking

Payslip advertising and internal organisational magazinesThese could be arranged for those organisations which are able to promote the car club for personal use.


Marketing to Students (and general digital marketing)Targeting students over an annual period has high impact through online channels, and student advocacy can breed natural viral opportunity.

The Student Index Survey 2014 shows: Students purchase a transport related product or service once per week on average Students are most likely to purchase transport related products/services in the town centre

(35%) or online (23%) Students are most likely to purchase transport related products/services in the afternoon

between 12pm-4pm (35%) Students tend to purchase transport related products or services after obtaining discount

either via their student card (45%) or through specific price promotions (18%)

Freshers’ Fairs have huge footfalls and are one of the most pinnacle showcase events of the year, providing mass exposure to new students just starting university. 80% of brands rate face-to-face as the best way to market to students and 68% of students visit campus every day, spending an average of 4.6 hours per visit. There is also a targeted student e-mail database which provides the ability to target specific segments of students based on location, subject, level of study, gender, domicile and more, has an average open rate of 30% and average click through rates of 9%. Content -driven web advertising on student sites is also a possibility with a click-through rate of 0.3%, as is targeted SMS advertising with open rates of 93% and social media advertising where 82% of students regularly find out about their favourite brands.

The digital marketing techniques used for students would also be used for general digital marketing of the car club.

Marketing Within Partner OrganisationsAs well as the specific public-facing marketing above, all the partner organisations have committed to marketing the car club to their staff through internal communications. The Peak District National Park Authority is keen to promote a car club to its staff and visitors in the National Park and such a scheme will fit with Derbyshire County Council and Chesterfield Borough Council transport plans to reduce car use across Derbyshire.

This marketing will highlight the benefits for both the staff members and the organisations. Where the partner organisations use the cars for business use any staff members who sign up will also be able to sign up for a private membership at the same time.

Business MarketingIn addition to the public marketing above, which will also reach businesses and business managers in the area, there are opportunities through the partner organisations within this project to market to local businesses through the travel planning routes. Key travel leads for the three councils are linked to this project and have direct access to business across all the council areas. The partner council organisations have agreed to promote this scheme to, and through, their business networks. Additional opportunities exist through other external local business networking events. Chesterfield Borough Council and Chesterfield Royal Hospital have agreed to use the cars for business use on a trial basis during this project implementation with a view to reviewing it before making a decision on long term use of such a service.
