Daimler-owned Car2Go to shut down service in 5 markets | Auto Finance News | Auto Finance News

Daimler-owned Car2Go to shut down service in 5 markets

Car2Go, a free-floating carshare service and subsidiary of Daimler AG, is shutting down its service in five North American markets by yearend, the company announced on its website.

Car2Go has plans to halt operations in Austin; Calgary, Alberta; Denver; and Portland, Ore. on Oct. 31. The carsharing service will also cease service in Chicago on Dec. 31. The five markets represent half of Car2Go’s footprint in the U.S. and Canada.

Operations will continue in New York City; Washington D.C.; Montreal; Vancouver, British Columbia; and Seattle, where the company will “refocus [its] efforts and resources [to markets] that represent the clearest path toward free-floating carshare success,” the company noted.

“[Rideshare] is a complex transportation market that requires a significant investment on the part of any mobility provider wanting to enter the city and unfortunately, we are unable to continue doing so in a manner that’s sustainable for our business,” the company wrote to its members in an e-mail, adding that the company will thin its fleet as the stop-service date approaches.

Car2Go first launched its services in North America in 2009. The German-based mobility company also has operations in Austria, France, Germany, Italy, the Netherlands, and Spain.

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