Nelson & Area Auto Co-operative

Date of Incorporation: February 2001

Membership: 7

Activity: Car sharing

Organisational form: Service co-op

Area served: Nelson, British Columbia

A Brief History

In early 2000, two groups of like-minded Nelson residents simultaneously thought of a car-sharing co-operative that would allow people to access automobiles without owning one themselves. This idea was partially initiated by John Alton, the current coordinator for the Nelson and Area Auto Co-operative, who placed an ad in the Nelson Times asking for interested persons to meet and to bring their car-sharing ideas.  He received a positive response from individuals who not only had enthusiasm for this car sharing concept, but also experience in writing grant and research proposals. According to John Alton in a March, 2001 interview:

We got a grant and started sharing one car which we had been doing for one year just between friends to get the feel of it and to find out what are some of the problems and how we could do this, before going into a formal managed system. ... And we've been doing market research and [also] research to learn all about co-operatives and car co-ops.

Although the newly formed Nelson car-sharing group did not begin as an official co-operative, their interest in other car-sharing organizations led them to the discovery of the highly successful Vancouver Auto Co-operative.

This well-established organization has existed for several years and is currently rapidly expanding towards the 1000 member mark. Although the Nelson group was much smaller (seven people sharing one car on an experimental basis) and it knew of other available car-sharing systems, it decided the co-operative model was the most desirable option. "We looked at different models," Alton said.  "[W]e could [have been] a business like in Montreal, where there is a large car-sharing business." The democratic principle behind the co-operative model was the deciding factor; the group felt that including all members in the decision-making process was important. Alton also jokes that, if they had gone with an alternate model, the Co-operative Auto Network promised that they wouldn't have anything to do with them.  The Co-op Auto Network was receiving so many requests for advice and assistance that they simply couldn't spend any time on for-profit businesses.

With resourcefulness in mind, one of the primary reasons for the development of the car co-op was to reduce environmental impact. According to Alton,

The car sharing becomes a support for the community to reduce their footprint, [its] ecological impact on the environment. And it's a stepping stone to actually letting go of your privately owned car and reducing the amount of time you either drive or are in a car, which has all kinds of benefits for parking, pollution, safety, more community involvement, people are walking which is good, out on the street and in contact with each other.

One Nelson and Area Auto Co-operative board member mentioned this:  "I think that our community has really been taken over by the automobile. Fifty percent of the urban environment is paved and everybody's into the individual ownership of a car or truck. It's environmentally unnecessary."  Co-op members also felt they no longer wanted to own vehicles for economic reasons. Alton also commented on the issue of personally owned vehicles that are being used infrequently, and he believes the money spent on automobiles, their attendant insurance and fuelling costs could be channeled into more community-oriented projects and businesses. Moreover, both car owners and individuals who do not own a vehicle support the car-sharing concept in Nelson. For example, some families already owning a car do not wish to purchase a second vehicle, but do occasionally feel a need for a second car.  What they really need is "one and half cars"; car sharing is an ideal way to supplement their requirement for a second vehicle on a part time basis.

The Service

John Alton had hoped to reach 15 people by February of 2001, at which time they would need to consider purchasing a second vehicle. However, the actual growth of the co-op was slower than expected with seven active members in March 2001.

Currently, the co-op's car (a 1993 Honda) is centrally located in downtown Nelson, which does cause some inconvenience for members who live out of town. Currently there is no time or distance limit on the vehicle, and as long as you book in advance, out-of-town trips are possible for both personal and business reasons. Once the co-op reaches fifteen members a second vehicle will be considered; owning a truck is also a possibility. "Living in the country,everybody needs a truck," says Alton.  "...Some people own trucks and they commute all around, transporting themselves with their gas-guzzler - [but] they only use it once a month. If the co-op could own a truck in common, more people could access a truck when they needed it without the various burdens associated with personally owning a vehicle."

Co-op Membership and Governance

Membership in the Nelson & Area Auto Co-op is $500 per share, which is simply held against the deductible portion of any insurance claim, and is refunded when the member leaves. There is a further $20 administration fee upon joining, and the member chooses a road package based on their anticipated level of use: high, moderate, or low.  A high use plan is $35 per month, with an additional 15 cents for every kilometre driven and $1.50 for each hour of use. With moderate use, the member pays $10 each month plus $1 per half hour and $.25 for each kilometre driven. And the low use plan is $50 per year, plus 30 cents per kilometre and $1.50 per hour. ¹

At the time of the interview, four of the seven co-operative members sat on the Board of Directors (board members must be co-op members) and the auto co-op had lost a few members because they had had difficulty scratching the $500 start up fee together. Despite this, Alton says their input is still valuable and these members may join the board at a later time. The co-op is still small enough that all opinions can be considered, and there is still little point in instituting a rigid governing structure.

Press coverage has been beneficial for the young co-op: "We were on the front page of the Express over Christmas," says Alton.  "We had a picture of the car and Derrick [another Nelson Auto Co-op member] and I, so that was good. For two weeks we were on the front page with a colour picture." The co-op followed up with a door-to-door campaign to raise awareness of the co-op and handed out surveys. In addition, the co­op members have been interviewed on BKR Radio and Kootenay Co-op Radio, with which they have a good relationship. Most of the co-op members also have their own Kootenay Co-op Radio shows, which makes for easy advertising.

Currently, the Nelson & Area Auto Co-operative is facing a few challenges.  The North American culture's love affair with the car does not provide much motivation for a large portion of society to give up their vehicles, nor does the Nelson city council, which tends to support corporate interests over community involvement. However, the growth of the co-op sector has been encouraging: "Co-ops are a big part of the social aspect of sustainability," said one board member.  " I think co-ops bring all of those together, I think it's a model of bringing together people, economics and the environment."

The Nelson and Area Auto Co-operative is a fledgling organization, but it has positive influences to direct it; car-sharing co-operatives have become well established in British Columbia locations such as Vancouver and Victoria and through the Co-operative Auto Network and the Victoria Car Share, members in the Nelson Auto Co-op will have access to cars in both these cities. The Nelson Co-op's commitment to a providing an economically and environmentally responsible alternative to car ownership and its positive promotion of healthful living will benefit both its Kootenay community and its provincial car sharing communities.

Endnotes

¹A high usage plan is for those driving more than 3000 km/yr or over 250 km per month. A moderate plan is for people using the car for 100-250 km per month and the low usage is less than 100 km per month. (http://www.nelsoncar.com/carshare/)

Case Study Information

This case study was developed for a report entitled Situating Co-operatives in British Columbia - 2000-2001, which was prepared for the Province of B.C. (Ministry of Community Development, Co-operatives and Volunteers) by the British Columbia Institute for Co-operative Studies, University of Victoria.  To obtain the information for the case study BCICS and the co-op entered into a partnership agreement. BCICS is grateful to the co-op members for their contributions and time. The case study is published with the approval of the co-operative.

Researcher: Colleen Shepherd

Date of research: 2001

Author: Colleen Shepherd

Date of writing: 2001/2002

Editing: BCICS editorial group

Supervision: Kathleen Gabelmann, BCICS Research Co-ordinator

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