Posted 24 May 2018 - 02:22 PM
Car2Go to shut down in Toronto, blaming new city rules
Car2Go, the prominent car-sharing company that claims 80,000 users in Toronto, will stop operations in the city on May 31, it announced Thursday in a release.
The company blames city hall, saying a new free-floating car-sharing pilot program passed by council in April after months of debate is overly restrictive and renders its service "inoperable." Specifically, it called the parking permit fees of about $1,500 per vehicle "unprecedented."
Car2Go wanted users to be able to park its 350 shared vehicles — Car2Go is well-known for its fleet of blue-and-white Smart cars and some Mercedes Benz vehicles — in residential areas.
When it launched, Car2Go vehicles parked in the city's Green P lots. However, the company then instructed its customers to park in any legal space, including in residential areas. That angered some Torontonians — especially those living in neighbourhoods where on-street parking is already scarce — as well as a number of city councillors.
Car2Go says council's new rules would put nearly 10,000 parking spaces off-limits for its customers.
In 2017, the company was ticketed for 42,595 infractions, which amounts to more than $1 million in fines.
A lot to wade through here. Some residents did not like the idea of these ownerless cars littering the streets. Like green bikes I guess.
Those fines amount to like $2,500 per car in one year.
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