New Electric Car-Sharing Service Launches In Indianapolis

A parade of cars drove by as Indianapolis Mayor Greg Ballard cut the ribbon for BlueIndy, a new electric car-sharing service. Despite controversy with the City-County Council and questions about the viability of the program, the cars are now available to rent.

The City of Indianapolis rolled out 50 electric cars and 25 charging stations, located across the city. The service is in its initial stages, with the ultimate goal of having 500 cars and 200 stations when the project comes to fruition.

The project was backed by French-based company Bolloré Group, which operates car-sharing services in Paris. BlueIndy marks the company’s first overseas project, with Bolloré promising to invest more than $40 million. Last week, the city’s Board of Public Works approved the allotment of $6 million in tax dollars for the program.

“It will take years for us to make our investment back, probably 5, 6, or 7 years, but we are committed to Indianapolis for the long term,” said Hervé Muller, BlueIndy’s President. “We are investing here and we’ve got a 15 year contract with the city, so we’re here for the long haul.”

Mueller explained that the city will receive profit-sharing once BlueIndy is in the black, while some councilors have argued that the company should pay a franchise fee. Council members and company officials are currently discussing that possibility.

BlueIndy’s cars are located across Indianapolis, from downtown areas to neighborhood destinations, and the average trip is expected to last only 20 minutes. The cost of renting a car will vary depending on the type of membership, with regular annual subscribers paying $9.99 per month, and members paying $4 for the first 20 minutes and 20 cents for each additional minute.

Some consider the program innovative and ambitious, while others question the usage of tax dollars as part of the investment. Certainly, the company is trying to appeal to consumers in a city where a lot of people rely heavily on their own cars, so the intention must be to win over specific groups such as Millennials, empty-nesters, and tourists.

Initially, many Indianapolis residents seem intrigued by the program, with one customer remarking that, “It seems like a neat idea. I thought it might be interesting if I want to go out to Fountain Square or something.” Another customer stated that, “One thing that holds us back as a city is our lack of mass transit, and I know we’re working hard on it. This is one piece of it and I’m really excited.”

“We don’t expect it to fail,” said Mayor Ballard. “Anyway, Bolloré has got most of the risk in this obviously, and they’ve got a great model that seems to work and so they’re just bringing it to here. We’re very lucky to be the North American entry point for this, that’s a real coup for us. You know, I like to say Paris, London and Indy. I like saying that.”

To build interest and gain customers, BlueIndy is offering several initial deals. The company is waiving the membership fee for the first six months, and is also offering free rides for up to an hour.