Car2Go

KUT

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."

Jorge Sanhueza-Lyon / KUT

Car2go is dropping the signature blue and white, logoed Smart cars from its fleet. Customers in Austin will be able to rent only Mercedes-Benz cars and SUVs when using the service in December.

ZipCar
Image courtesy citta-vita http://www.flickr.com/photos/koshalek/

Students, faculty, and staff at the University of Texas at Austin will be able to rent one of eight ZipCar vehicles positioned throughout campus starting in mid-January. ZipCar is a private company that rents full sized cars on an hourly basis.

ZipCar will be competing with Car2Go, which rents tiny smart cars. Car2Go was only available to city workers for a year under a pilot program. It now offers car rentals to everyone in the city.