car2go to Cease Operations in Twin Cities, San Diego

Photo courtesy of car2go
Photo courtesy of car2go

car2go plans to suspend its carsharing service in the Twin Cities and San Diego by the end of the year.

In the Twin Cities, car2go has faced high state car rental taxes, according to a report by the Star Tribune. The carsharing service arrived three years ago in Minneapolis, with St. Paul service following in 2014. Currently, there are 400 car2go vehicles and about 29,000 members in Twin Cities.

car2go said Minnesota’s rental rates “made the Twin Cities one of the most expensive places in North America to operate our service,” according to the report. The rates made it hard to offer affordable pricing to car2go members, now at 41 cents per minute for shorter trips, car2go told the Star Tribune.

In San Diego, car2go wasn’t getting enough business to continue its operation, according to a report by San Diego Patch.

"We invested a lot to support car2go in San Diego, but unfortunately we have not seen enough adoption to-date to continue,'' the company posted on its official San Diego Twitter account.

Earlier this year, car2go switched its all-electric vehicle fleet to gas-powered cars due to a lack of charging stations. When car2go launched in San Diego in 2011, it was the only North American city with an all-electric fleet.

Currently, car2go operates in nine U.S. cities and 19 other cities worldwide.

Click here to read the full stories in Star Tribune and San Diego Patch.

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