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Car2Go to halt carsharing operations in Toronto

Car-sharing group Car2Go is suspending operations in Toronto, Canada, because of what it sees as restrictive regulations introduced by the city’s authorities. Toronto City Council is introducing its own free-floating carshare pilot on June 1 which Car2Go says makes its service ‘inoperable’. In a letter to users, Car2Go’s North America CEO Paul DeLong says that companies taking part in Toronto’s new pilot will be charged $1,499.02 per vehicle and that many streets which operate a residents’ parking permit
May 29, 2018 Read time: 2 mins
Car-sharing group Car2Go is suspending operations in Toronto, Canada, because of what it sees as restrictive regulations introduced by the city’s authorities. Toronto City Council is introducing its own free-floating carshare pilot on June 1 which Car2Go says makes its service ‘inoperable’.

In a %$Linker: 2 External <?xml version="1.0" encoding="utf-16"?><dictionary /> 0 0 0 link-external letter Car2go letter link false https://links.news.car2go.com/servlet/MailView?ms=MzM5NTk0MwS2&amp;r=MTA5ODY3ODUwNTc3S0&amp;j=MTAzMTAzNzY5MAS2&amp;mt=1&amp;rt=0 false false%> to users, Car2Go’s North America CEO Paul DeLong says that companies taking part in Toronto’s new pilot will be charged $1,499.02 per vehicle and that many streets which operate a residents’ parking permit system will not be available for carshare anymore.

This means “almost 10,000 parking spaces where Torontonians regularly start and end Car2Go trips today will be forbidden once the pilot begins”.

Car2Go claims to have 80,000 users in Toronto. It began operating in the city in 2012, when users were required to park and pick up cars in designated spaces. That migrated to a system where cars could be accessed from any legal parking space on Toronto’s streets – a freedom that the new system will restrict dramatically.

In a barbed reference to city authorities, DeLong writes that Car2Go appears more welcome elsewhere in Canada: “Other cities – including Vancouver, Montreal and Calgary – established free-float carshare policies years ago and have fully embraced free-float carshare because of the numerous economic and quality of life benefits it delivers. In fact, Montreal just expanded free-float carshare access to more boroughs of the city. Unfortunately, Toronto has chosen a different path.”

DeLong’s letter concludes: “We hope that one day, the City of Toronto chooses to establish a legal framework that makes true free-float carshare possible in the same way that dozens of other global cities have.”

In a statement, Toronto mayor John Tory called Car2Go’s action “unfortunate”. He insisted: “It is their decision alone to walk away from a clear path towards regulations that would allow them to operate in our city in a reasonable, compatible way. I’m confident that other car sharing companies willing to work with us and to operate in this manner will succeed in Toronto.”

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