By Ray Birch
FALCON HEIGHTS, Minn.—Saying it recognizes just how much auto lending is going to change in coming years as the result of ride sharing services and autonomous vehicles, SPIRE Credit Union has announced a new partnership with HOURCAR that is also aimed at raising awareness.
The $1.1-billion SPIRE CU’s partnership with HOURCAR, an independent, nonprofit carshare organization, includes an access hub at SPIRE’s Minneapolis location.
HOURCAR provides its members with hourly access to a fleet of fuel-efficient vehicles. Once a member makes a reservation, they are able to drive it for as long as the reservation lasts. Vehicles can be rented for anywhere from 30 minutes to three days.
“We know how automobiles will be used in the future will be different,” explained Casey Carlson, SVP-marketing with SPIRE. “And services such as HOURCAR may be one of those ways. Partnering with HOURCAR will certainly give us insights into how consumers behavior regarding automobiles. So far, our members are responding well to this. They are using the service.”
The credit union provides space for one HOURCAR at its Minneapolis office lot.
But Carlson said consumers’ changing auto ownership habits are not the reason SPIRE struck a partnership with HOURCAR. Rather, he explained, the decision was made by the community-minded SPIRE as a means of giving back in another way. Carlson noted that parking spaces are very limited in the section of the city in which its Minneapolis office is located.
HOURCAR has cars stationed in various points around the city, and then return the vehicles to their original location.
How Relationship Started
“The whole thing started when our CEO, Dan Stotlz, was speaking at a local conference,” explained Carlson. “We are well known for our community efforts, and the president of HOURCAR was at the meeting and asked Dan if we’d be interested in some form of partnership with HOURCAR. He talked to Dan about the parking issues near our Minneapolis office and nearby University of Minnesota, and said that HOURCAR was struggling to get locations for its vehicles. Parking spaces are very limited in our Minneapolis lot, but we decided to give one to HOURCAR.”
Carlson said the decision is a win for the credit union and HOURCAR. Although there is no monetary arrangement with HOURCAR—the CU does not receive a portion of the money the HOURCAR on its lot generates nor is it leasing the space to the car sharing company—the credit union gets its name on the HOURCAR in its lot and also on the HOURCAR located on the campus of the University of Minnesota.
“What it does,” said Carlson, “is further demonstrate our commitment to this city. People know of the parking issues in downtown Minneapolis, and our office there is
right next to the light rail station. People can take the train and then use an HOURCAR to do their business in the city, get groceries … They clearly see that SPIRE is giving back.”
Potential New Accounts
Consumers who use the HOURCAR, are also exposed to the credit union, Carlson reminded.
“They see our name, and some stop in. We may get some new accounts from this,” he said.
The credit union does not assist with the HOURCAR transaction, but it does publicize the service with brochures in its branches and on its website.
Carlson said the partnership began in September and that members immediately showed interest in using HOURCAR.
“We have yet to track the number of members using the service, but we are working on that,” he said. “This is pretty interesting, and we want to see where it could go.”