Economic feasibility of independent vanpool operations

Technical Report · Wed Sep 01 04:00:00 EDT 1976

OSTI ID:7095375

As of July 1976, there were at least 60 vanpooling operations (double the number in the previous year). However, with few exceptions (Pine Tree Commuter Van Corporation in Los Angeles being the largest), the vanpooling operations are run by an employer for the benefit of employees. Most of the large successful company-supported vanpooling projects are run by companies with over 500 employees per site. The concept is new and has not caught on yet by independent leasors. It may also be that independent vanpooling operations (IVOs) are legally or economically infeasible. An example of a legal problem is that in most states a private company operating a van pool for its employees is not considered to be a public carrier, but an independent third party van-pool operator is and may be subject to regulation. If true, this increases the legal costs necessary to start an operation and serves to create an economic barrier which impedes the development of IVOs. The legal and insurance problems are not in the scope of this paper. Can IVOs operate profitably when revenues from fares must cover all costs, not just operating costs. What kind of financing is best for IVOs--leasing or borrowing. How much capital must an IVO operator expect to put up before the operation breaks even. These are the major economic and financial questions which this study answers. The study has four sections. The first discusses the public policy aspects of van pooling; the second and third look at the economic and financial aspects; and the final section draws conclusions. (MCW)

• Research Organization: Federal Energy Administration, Washington, DC (USA). Office of Energy Conservation and Environment
• OSTI ID: 7095375
• Report Number(s): FEA/D-77/014
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
291000* -- Energy Planning & Policy-- Conservation
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320203 -- Energy Conservation
Consumption
& Utilization-- Transportation-- Land & Roadway
CARPOOLING
ECONOMICS
EMPLOYMENT
ENERGY CONSERVATION
ENERGY CONSUMPTION
FEASIBILITY STUDIES
FINANCING
FUEL CONSUMPTION
GOVERNMENT POLICIES
INDUSTRY
INSURANCE
LEGAL ASPECTS
OPERATION
OWNERSHIP
PROFITS
REGULATIONS
SIMULATION
VANPOOLING