Tel Aviv’s new carsharing service Autotel will start with 260 vehicles around the city, according to a report by the Globes. car2go, a franchise holder, will operate the new carsharing program.

Users will be able to reserve the carsharing vehicles via the service’s app and pay by the minute. The per-minute rate hasn’t been set yet, but the Tel Aviv municipality said it would be 30% to 40% cheaper than taxi rates, according to the report.

Subscribers will receive an electronic card that will open the carsharing vehicle. The car can be taken from where it’s parked and parked at another location in the city — once the user is done with the rental, says the report.

Tel Aviv municipality will reserve 520 parking spaces for the carsharing vehicles, and the cars will also be allowed to park in spaces on the city streets with blue and white markings. The municipality will spend NIS 10 million per year on this carsharing program for 10 years, says the report.

Click here for the full Globes report.

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