Change or die…

An open letter to my former employer

Quick vocab lesson:
• Ridesharing – filling the empty seats in your car (Zimride)
• Car-Sharing – renting a car by the hour or day (Zipcar)

People are a bit surprised to hear that I’ve worked in the polluting car industry before I started with Zimride. I’ll admit that I wasn’t as green-minded when I started with Ford out of college, but I also know that the automobile is an important partner in this ride-sharing concept, and we need that industry to stay healthy. This move to California has opened my eyes in many ways. I’ve had the dream of a vast rideshare network for some time, but I’m gaining more understanding of another factor that's changing things – car-sharing.

Coined “Collaborative Consumption” by Rachel Botsman, this new movement is making “loanership the new ownership”, moving from a “society of me”, to a “community of we”. According to AAA, in 2006, American spent $7,834 on auto related expenses. While Americans love their vehicles, most people try to minimize their time behind the wheel. Cars typically sit idle for 23 hours a day. Most insurance rates don’t factor in how much you drive, so that single hour of driving can be expensive. Now consider that the vehicle is either taking up your precious garage space, or sitting outside, waiting for a thief or hailstorm to smash a window.

Generation Y likes cars, but we view them as a means of travel rather than a personal possession. Vehicles (typically) are not good investments. You’d probably be better off aging wine in that extra garage space.

Most “go green” lifestyle changes require paying a premium (buying organic) or high up-front investment (solar panels) to see results (better health and lower bills). But adopters of the rideshare/car-share movement save money...lots of money. And as a bonus we use less fuel. The Gulf of Mexico should be sending us all a message. A driver blaming BP for the oil spill is like a druggie blaming the gangs for the border violence. We’re all fueling (pun intended) the exploration of oil a mile under the water surface.

What makes the new green movement in the auto industry different is the social factor. The online information collaboration, plus some awesome car-sharing technology, is allowing many two-car families to switch to one, and some people are giving up car ownership completely. Like I said before, the car companies are partners in this, but they will only benefit if they make changes soon.

If I could sit down with the current Ford management, I would provide three suggestions:

1. Innovate and downsize. Someday in this country, less will be more. We will pay a premium for the amount of gas a vehicle sips, not the monstrous size it boasts. “Speak softly and carry a big stick” was great advice for our country. I think we can apply Teddy’s words to the automaker's situation – don’t go screaming about a looming oil crisis, but have an arsenal of small and efficient cars when it happens.

2. Sharing is saving. The car company that encourages it’s customers to share their ride and split costs will create a client base that makes payments on time and trades up faster. If ridesharing takes a car off the road, let it be the competitor’s car sitting idle all day long. The advantage goes to the first mover.

3.Get in the game.
a. Become a supplier to the car-sharing companies. Car-sharing customers are paying to take test-drives. If you have a good product, they’ll talk about it, and maybe buy one someday.
b. Soon, people will own hourly rental cars and lease them out when they’re not using them. Apparently Ford and Toyota are looking into this (article), but I haven’t heard anything about buying a sharable car, or adding the package aftermarket. This will take some time to become the norm, but it could be a game changer. These cars will require plenty of maintenance and will quickly be replaced. There is money to be made here.


You probably thought the blog title is from the Web 2.0 side of the story. It’s actually from Ford President Mark Fields. He made it his battle cry while I was with the company. With great help from Alan Mulally, Fields has helped Ford in their current turnaround; I just hope he has the insight to see the even bigger change that’s on the horizon.

Ford can let the competitors encourage buyers to own a vehicle, and stick with their current slogan: Ford. Drive (and share) One.