Synergy: From Parking Lots, a Car-Sharing Company Grows

(MoneyWatch)  The concept of vertical integration is at work here: Richard Ull, founder and CEO of a new car-sharing service called Mint that announced an expansion today, also owns a chain of parking garages. That gives him a leg-up against the competition (read: Zipcar, which merged with arch-rival Flexcar 18 months ago) because finding a place to put share cars is one of the big expenses in this rapidly growing urban-based business.

For now, Mint is limited to Manhattan and Brooklyn in New York City, but it has expansion in mind. "I've been in the parking business for 12 years and have 70 locations," says Ull. "It wouldn't be practical otherwise. The parking drove the idea, and provided the synergy."

If you're not familiar with car sharing, which is huge in Europe, the basic idea is that you can have access to a vehicle when you actually need it (through a membership plan) without incurring the many hidden costs of ownership. Ull says. In New York City, maintaining a car is likely to run $1,000 to $2,000 a month, and parking in Manhattan is the equivalent of many outsiders' rent. Less than half of New Yorkers own a car, a ratio unmatched in any other U.S. city.

Smartcards are used to make reservations and to unlock car doors. In keeping with the times, 75 percent of Mint's fleet, including Honda Fits, Toyota Yarises and Nissan Versas, gets 30-mpg or better. To encourage workday business, Mint charges just $2 per hour (including gas, insurance E-Z Pass and 180 miles) between 8 a.m. and 5 p.m. There are membership fees ($50 a year), but they're waived in the first year.

"We did our due diligence on the car-sharing business," Ull said. "We are finding our niche, and now have 2,000 members." And he added, "And we're growing."