I want to start by saying thank you for offering such a great service to the city of Philadelphia. Over the past few years, I have used your car sharing program for a variety of activities, and it has been a great resource. I am not the only one who believes in the service—I know that over 50,000 other members also feel similarly to me. However, I am writing to you to express my concern over your recent changes to your PCS membership plan.  It saddens me that you are eliminating your Basic Freedom plan, although I am sure there are valid reasons behind doing so. I understand that with the current economic conditions these changes might have been inevitable. I do not know what goes on behind the scenes at PCS, although there have been plenty of not so pleasant second hand stories floating around the internet detailing the mishaps of PCS management. Regardless of the reasoning, it is unclear why this is happening now. As a member of PCS, I feel in the dark about why these changes are happening and how they will help PCS stay in business.

Furthermore, what concerns me with your recent changes is the manner is which they were executed:
 
•  First, sending out an email with what could be considered the most radical change in your company’s pricing/operating history on a Friday evening, at 5:41pm was poor timing at best. Most people have left work by this time and might not pay much attention to their email until the following Monday. Those who did read the email on Friday evening probably didn’t want to deal with it at that moment.
•  Second, giving members less than six days notice to change their plans is a small window to avoid being charged any amount of money, especially when a number of your members do not pay anything at all outside of their reservations.
•  Third, the email notice is lacking any significant information about hourly rates (just a range), vehicles, or detailed facts about why this change in rate structure will be the right choice for the majority of your members.

Right now I am signed up for both Philly Car Share and Zipcar. Obviously the entrance of Zipcar to the Philadelphia market has given people in Philadelphia a choice of what service to use. Currently, this is how I see the benefits for each:

Philly Car Share   
Yearly Fee: $125 yearly, $15 month to month  
Mileage Fee: $0.22 per mile (Example: 3 hours = $6.60, at 10 miles an hour)  
Hourly Rates: $3.55 to $8.55  
Locations in PHL: More than Zipcar  
Add’tl Locations: None
Member Perks: Local Discounts  

Zipcar
Yearly Fee: $50 (now discounted to $25)
Mileage Fee: 180 miles included
Hourly Rates: $6.00 to $9.00
Locations in PHL: Less than PCS
Add’tl Locations: 52 cities
Member Perks: Local & National Discounts

While Philly Car Share offers more locations and cars, it appears that Zipcar is a better value for a number of reasons. The yearly membership rate is cheaper by close to $75 to $100. Furthermore, if Philly Car Share members went month to month at $15 a month, by the fourth month they would in fact be paying a higher membership than Zipcar's annual rate ($60 vs. $50.) Philly Car Share does offer lower hourly rates, but the $0.22 cents per mile wipes out any hourly discount.  Zipcar includes 180 miles, which is more than enough for almost any Philadelphia area trip. The more miles you drive with Zipcar (under the 180 miles provided), the cheaper the service becomes in comparison to PCS. In addition, Philly Car Share is at a severe disadvantage because Zipcar offers their members a chance to rent cars all across the country (and even in internationally, as well.) The additional perks (discounts on businesses) are relatively equal, depending on what services you prefer to use.

I only mention these details because it will only be a matter of time before your members figure this out on their own. Whether they sit down and do the math themselves, or simply leave because they don’t understand why they are being charged $15 a month, you are alienating thousands of users because you are not fully explaining why these changes are necessary and beneficial for your members. It may be hard for PCS to be fully transparent, but your members/customers will appreciate you more. If PCS is struggling financially, why not just put your cards on the table and tell it like it is? Make a plea to your membership base (50,000 strong) and ask them to help one of the best community-based nonprofits in Philadelphia stay alive. You offer a service that so many need and appreciate. However, it’s obvious from a business standpoint that you need them even more than they need you. PCS is facing competition not only from similar services like Zipcar, but also other forms of public transportation like SEPTA or taxi services. Members won't be loyal when you pull stunts like instituting monthly fees with little advanced warning.

The impact of your decision to announce your new plans has been immediate. Blogs, Twitter, etc. have picked up on this story and are going to town on PCS. Your company image is taking an absolute beating in the community, and worse yet, ZipCar is taking full advantage by offering free signups with a $25 yearly fee. ZipCar should be sending over a basket of freshly baked goods with a handwritten thank you note for all the new business you are about to give them.

I hate to see something like this happen to what was a once promising and exciting company in Philadelphia. PCS needs help keeping as much of its current membership base in tact and keep the foundations strong for growth in the future. Right now that isn't happening and it needs to change. I don't want to see Philly Car Share go, but you aren't leaving your members many reasons why they should stick around.

Sincerely,
TR