The City of Toronto approved a Free Floating Carsharing pilot project, which will partially be run by Canada's oldest carsharing service, Communato.

In a statement, Communato said the Free Floating CarSharing Pilot Project will create a new category of residential parking permit, allowing the growing number of people who don't own a car to access on-street, residential parking across the city with shared vehicles.

The pilot allows up to four different companies to provide service with a maximum of 500 cars each, and the permits provide access to all of the residential parking zones across the city, except those that have already reached 95% subscription.

Communauto operates both forms of carsharing, providing members with the reliability of reservation-based, return-trip service, and the convenience of one-way, free-floating vehicles. Carsharing has been shown to reduce traffic congestion, transportation-related CO2 emissions, and demand for parking.

Launched in Quebec City in 1994, Communauto operates more than 2,000 vehicles — mainly hybrid and electric — in 11 communities in Canada and in Paris. The service is both round-trip and free-floating with price starting at 2.25 Canadian dollars ($1.75) per hour.

Communauto expects to launch its service in Toronto later this summer.

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