RFP and Updated Decision for Carsharing Operator, Milan, Italy, 2013-2016

  • Featured Overview
  • Date Launched: Apr 27, 2016

Summary

In 2013, the City of Milan released a public notice specifying an “expression of interest for the identification and stakeholders to carry out the car-sharing services on the territory of the Municipality of Milan.”

The notice called for carshare operators that fulfilled for the following requirements:

  • One-way, free-floating and point-to-point carsharing
  • On-demand reservations
  • Fleet of at least 80 carshare cars, falling in the categories of electric, hybrid, natural gas, etc.
  •  At least one vehicle out of 100 fitted for the people with reduced mobility
  • Required coverage to specific geographic areas of the city to ensure equity of access
  • Regular reporting of data and ownership of a subset of the data by the City (number of subscribers, users, number of vehicles, Origins and Destinations of trips, etc)

The RFP included the following incentives for encouraging sustainable transportation:

  • A 1100-euro charge per vehicle to operate in the city, but this fee could be waived for fully electric vehicles
  • Access to the restricted traffic zones of the city- and right to park in restricted parking zones

The following companies began operating service as a result of this RFP:

  • Car2go
  • Enjoy
  • Twist- suspended service in 2015

City of Milan Executive Decision- Request for Proposals (RFP)- 2016

In 2016, the city of Milan revised their RFP through an executive decision that built upon the 2013 RFP, offering new incentives, including free parking, higher vehicle caps, and user incentives to promote the success of carsharing in Milan. This was influenced by an analysis of the free-floating carsharing services in Milan (AMAT document 160360026_00), which had the following findings:

  • during all of 2015, each day an average 9,000 rentals were completed, with each vehicle used on average 6 times;
  • each rental lasted a total of 30 minutes (for 20 of which, the vehicle was moving and for 10, while standing still), within which time more than 6 km were traveled;
  • more than 300,000 users have subscribed to the service, 60% of whom reside in Milan;
  • the number of rentals has exceeded 6,200,000 for an average of 9,300 per day and average daily total mileage of 55,000 km;

The results achieved have helped, as a consequence:

  • reduce the fleet of vehicles on the road
  • reduce the vehicle ownership rate
  • limit emissions by existing fleet of vehicles
  • increase use of local public transport;

A Few New Regulations & Incentives of the 2016 Decision:

  • Minimum mandatory fleet size increased from 80 to 400 cars
  • A fee of 100-euros per month for each internal combustion motor vehicle belonging to the car sharing fleet, to be paid to the city
  • Discounts for increasing service across multiple municipalities:
    1. 10% discount for launching the service in 5 municipalities
    2. 20% discount for 10 municipalities
    3. 30% discount for 15 or more municipalitie
  • Appropriate fee discount for service providers if they grant users preferential treatment forLeaving the vehicles inside one of the aforementioned “Mobility Areas” to be created shortly;
  1. Using the service during nighttime or non-peak traffic times
  2. demonstrating their disposal of a vehicle registered in their name without a new vehicle purchase within their immediate family;
  3. demonstrating possession of an annual subscription to local public transportation