As the company plans to cease operations in a number of markets, carsharing’s future in the rapidly shifting world of mobility is unclear.
Katie Pyzyk reports that car2go, the carsharing service, has announced it will stop operations in five North American cities: Austin, Texas; Portland, Oregon; Denver; Chicago; and Calgary, Alberta.
"The string of car-sharing businesses folding or significantly reducing market reach in rapid succession has raised plenty of questions about the sector's profitability and business model feasibility," notes Pyzyk.
Urban mobility is changing quickly, and the trend for shared mobility ventures is toward non-car, lower-emissions modes, such as scooters, says Pyzyk. Car sharing also requires higher startup, operations, and maintenance costs. "A hefty amount of capital is needed up-front just to purchase one vehicle, and the loss of a vehicle to theft or retirement at end of life would create a larger impact on a car-focused shared mobility business than a scooter-focused one," adds Pyzyk.
Read the full story: Car2Go's exit from 5 cities raises car-sharing viability questions
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