Car2go Puts Brakes On Car Rental Service In Austin
Car2go is pulling out of Austin.
The business, owned by the German luxury-car maker Daimler, allows people to rent cars by the minute. In a message posted on the car2go website Friday, the company said it "underestimated the investment and resources that are truly necessary to make our service successful in these complex transportation markets amid a quickly-changing mobility landscape."
The company started renting a fleet of mini Smart cars in Austin around 2000. It moved to a line of Mercedes-Benz a few years ago.
Car2go will cease operations here – as well as in Calgary, Denver and Portland – on Oct. 31. It will end service in Chicago at the end of December.
According to the Austin American-Statesman, however, it will keep its North American headquarters here. It moved into a new building on East Sixth street last year.
Car2go says it will focus its business on the remaining markets where its operating: New York City, Montreal, Vancouver, Seattle and Washington, D.C.
Correction: A previous version of this post incorrectly said the Smart cars were electric.