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Importance of Incentives in

Marketing and Measuring TDM

Rick Steele, CEO, NuRide, Inc.

NYMTC Meeting

New York, NY

Apr 6, 2010

http://nuride.com/contact

• Reward commuters

- carpool / vanpool

- public transit

- telecommute

- walk

- bike

• Ride matching

• 46,000 commuters

• 3.8 million trips

• 100 million VMT

NuRide is the nation’s largest commuter rewards program

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$1.9 million in rewards provided by 296 sponsors

Commuter video – “car-polling”

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1980 1990 2000 2010

46% decline

19.7%

10.7%

Technology has not increased ridesharing

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The problem is motivation not mechanics

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Gas prices provide motivation – but they are uncontrollable

Rewards provide ongoing motivation

58% joined because of rewards

48% previously drove to work alone

Rewards = motivation to change behavior

50% of members took a non-carpool trip in Dec 09

Rewarding all modes = bigger database = more matches

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Found one Thanks for match, bye!

Rewards! I’ll stick around

Rewards = loyalty = bigger database = more matches

Need match

75% reported a successful rideshare match

83% share rides “more” or “much more”

56% of active members have been active > 1 yr

Rewards = loyalty = bigger database = more matches

NuMail and email Poll & surveys

Rewards = loyalty = valuable feedback & communications

30% of new members in 2009

came from referrals and they were …

45% more active than non-referrals

Rewards = loyalty = referrals = more activity

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Jul-08 Oct-08 Jan-09 Apr-09 Jul-09 $1.00

$2.00

$3.00

$4.00

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

30 yr low gas prices

record unemployment

Rewards = loyalty … even in bad times

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Jul-08 Oct-08 Jan-09 Apr-09 Jul-090

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000 NuRide trips up 59%

NuRide visits up 14%

Rewards = loyalty … even in bad times

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nuride.com

erideshare.com

rideproweb.com

rideshareonline.com

+ 14%

- 41%

- 42%

- 56%

Visits to competing web sites

were down at least 40%

Rewards = loyalty … even in bad times

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Recorded trip

From: Home

To: Work

Mode: Carpool

Vehicle: 2004 Honda Civic

Passengers: Bill & Tom

Company: IBM

Date: 12/15/10

Time: 8:05 am

Reward: 100 points!

Rewards = valuable measurement for regional reporting

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Employer

“races”

Rewards = valuable measurement to engage employers

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Oct-08 Dec-08 Feb-09 Apr-09 Jun-09 Aug-09

Trips

Houston Washington DC

Houston TX – good local rewards

Washington DC – poor local rewards

Reward must be ongoing, sustainable and local

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SUSTAINABLE

• Provided by sponsors

• Large/unlimited inventory

• Ongoing not one-time

Practical

Sel

f-co

nta

ined

10% off vacation

Tickets to event

$ off food

$50 gas cardUNSUSTAINABLE

• Must be purchased

• Limited quantities

• Unrealistic

expectations

• Attracts fraud

Sustainable rewards are sponsored – not purchased

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December 4, 2009

“The Atlanta downtown group is

also interested in adding scooters to

its cash-incentive program to promote

alternative commuting, Laurie says,

but doesn't have the budget to do so.”

Government funded rewards are not sustainable

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Periodic raffles and prizes do not constitute a rewards program

15% of active members

entered a raffle in ’09 whereas …

60% redeemed a reward

Sponsored rewards count as CMAQ local match – saving state $

$156,833 in sponsored rewards in

the New York Metro in ’09

$461,864 nationwide

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Technology has not increased ridesharing

Rewards increase ridesharing and promote TDM

So we learned that …

1. Provide motivation for more enrollments

2. Instill loyalty for bigger database with more matches

3. Instill loyalty for more referrals, enrollments and activity

4. Provide detailed, real-time measurement & communication

5. Rewards must be ongoing & sustainable, not periodic prizes

6. Sponsored rewards can save states money, not cost them