The car-sharing service Car2Go informed its members Thursday afternoon that it will suspend operations in Miami and Miami Beach effective March 1.
Car2Go, a subsidiary of Daimler North America Corp., launched in Miami in 2012 and expanded its app-enabled service into Miami Beach last October, allowing its members to hop in its two-seater car2go vehicles around the area, drive where they need to go, and pay for the time they used them. In November, the company said it had a fleet of 300 cars and 29,000 members. But on Thursday, the company said slower-than-expected adoption rates contributed to its decision to pull out. It also blamed the regulatory environment in Tallahassee.
“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 car-sharing. Other services have also entered the mobility market, and are not subject to this additional tax,” the company said in its note.
“We’ll continue to operate as normal in both Miami and Miami Beach until March 1st, after which all vehicles will be taken out of service,” the company tweeted. “This decision was not made lightly.”