Document Type

Closed Project

Publication Date

Spring 2015


William Eisenhauer

Course Title

Advanced Engineering Economics

Course Number

ETM 535/635


Car2Go has been in Portland since March 2012 and has yet to show they are a profitable in this city. This report is an economic analysis of expanding Car2Go services in Portland, Oregon. The annual worth method is used to evaluate the profitability of three expansion options: 1) expanding the home area, 2) increasing fleet size, and 3) expanding the home area and increasing fleet size. A market analysis was conducted to determine the serviceable obtainable market and likelihood of obtaining new members with home area expansion. Based on the economic and market analyses, it was determined that expanding the home area in the first two years and then increasing fleet size in year three would be their most profitable option. However, further market research needs to be conducted with a larger sample size for a more accurate analysis.


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