After launching in Miami in the Summer of 2012, car-sharing service Car2Go is ceasing operations indefinitely in Miami and Miami Beach effective March 1, citing a low user base and state taxes. The company announced the news in an email to its members on Thursday:
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. The low ridership can likely be attributed in part to the rise of Uber, Lyft, and Freebee, which all eclipse Car2Go in convenience. The two-seater car-sharing service now operates in 13 cities and it's unknown if it plans to return to Miami down the road.