Car2go Pulling Out of Miami Due to Not-Great Ridership and High Taxes

Gridics Staff January 21, 2016 Mobility & Transportation, Technology

Just two days after ride-sharing service Uber won a big victory in Miami-Dade County, another service, Car2go, has decided to suspend their operations in South Florida, according to an email to members. This will take effect on March 1st, just under a month and a half from now. The car sharing service, known for its little blue and white smart cars scattered around Miami and Miami Beach, cited the fact that not a lot of people actually use it, even after four years of operation in South Florida, and also cited Florida's rental car tax, which make the state one of the most expensive cities in the country to rent a Car2go.

According to the email:

Since our launch in 2012, we have received strong support from our members in Miami, as well as the broader Miami community – and for that we are incredibly grateful. Together, we’ve been able to explore exciting new ways to help people move throughout urban areas with greater ease. While we believe Miami can benefit greatly from a service like car2go, Florida’s rental-car tax doesn’t reflect the innovation we bring to the rental car sector, making Miami one of the most expensive cities in North America for one-way carsharing. Other services have also entered the mobility market, and are not subject to this additional tax.This, in part, has contributed to a slower adoption of our service in Miami compared to other car2go cities. As a result, we have decided to suspend operations in the area until car2go’s presence here is better aligned with our mission to provide a sustainable, affordable transit option.  

Traveling from South Beach to Downtown Miami or vice versa via a car or ride sharing service costs about $9 or $10 on Uber or Lyft, $6.50 on UberPOOL, and theoretically anywhere from $7 (maybe $6) to $10 on Car2go without considering the time it takes to park. Factor in twenty minutes of put-putting down Flagler Street looking for a space (same with the beach), and you might as well have taken an Uber.

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