Popular vehicle-sharing service car2go is suspending its operations in Toronto after city council approved a regulatory framework that the company says “effectively forces” it to leave the city.
Car2go is a one-way vehicle-sharing service that allows members to park in any legal space, including those on residential streets that are typically reserved for vehicles with permits.
The company had been lobbying city council to approve a pilot project that would allow it to purchase residential parking permits in bulk so that its vehicles could be legally parked on city streets rather than being illegally parked and amassing tickets.
Though council did approve a pilot project in April, car2go says that it included “restrictive” amendments that “make the continuation of service in Toronto inoperable.”
Those amendments include a stipulation that would prevent car2go and other car-share vehicles from being parked on any residential street on which 95 per cent or more of all available permits have already been scooped up.
Car2go says that stipulation alone would mean that “almost 10,000 parking spaces where Torontonians regularly start and end car2go trips today will be forbidden once the pilot begins.”
The company also says that the pilot would set an “unprecedented” permit fee of $1,499.02 per vehicle every year and would also require companies like car2go to immediately move their vehicles whenever the number of carshare vehicles on a given residential street exceeds two.
“This is not the result we were expecting and to say we are disappointed would be a huge understatement,” car2go North America President and CEO Paul DeLong said in a message sent to members on Thursday. “We have spent nearly six years attempting to collaborate with the City of Toronto to establish an effective regulatory framework for free-float carshare. Despite our best efforts, your city councillors decided to pass a pilot that ultimately weakens mobility options for Torontonians and prevents us from providing car2go service for 80,000 Torontonian members once the pilot legally takes effect June 1st.”
When car2go initially started operating in Toronto in 2012 members were required to pick up and park their vehicles in Green P lots but starting in 2016 the company allowed members to park the vehicles in any legal spot within its boundaries.
Since that change, the company says its membership has increased by 51 per cent to roughly 80,000 Torontonians. That makes car2go’s membership in Toronto the biggest among the 26 cities that the company operates in worldwide.
The surge in membership, however, has been accompanied by an increase in bylaw infractions as users started illegally leaving vehicles on residential streets. According to a staff report, car2go vehicles were ticketed for 73,634 bylaw infractions between April, 2016 and December, 2017, amassing more than $1.97 million in fines in the process.
“We know Torontonians love free-float carshare, but the legal framework city council set forth effectively forces us to leave the city,” DeLong said in the message sent to members. “That’s not what we want to do, but we are left with no other choice given the severe restrictions set forth in the pilot.”
Car2go chose ‘confrontation over collaboration,’ Tory says
A staff report detailing the pilot project cited complaints from residents who feel that the “clustering” of car2go vehicles on some streets is resulting in a reduced availability of spots.
The report said that in order to “mitigate” those concerns, the city should ensure that any regulatory framework is carried out in a “controlled manner.”
In a statement issued on Thursday morning, Mayor John Tory said the pilot project “strikes a balance between the benefits of car sharing and the potential impacts it could have on neighbourhoods.”
He blamed car2go for being unwilling to work with the city on regulations that work for everyone.
“Throughout this process car2go has chosen confrontation over collaboration with city council,” he said. “In fact, through the course of discussions with the city about reasonable concerns shared by many Toronto residents their response was to repeatedly threaten to leave the city. While their decision to suspend operations in Toronto is unfortunate, it is their decision alone to walk away from a clear path towards regulations that would allow them to operate in our city in a reasonable, compatible way.”
Car2go says that it will terminate its operation in Toronto on May 31, which is one day ahead of the official start of the pilot project.
Motion asks staff to reconsider proposed restrictions
Tory said that he is confident that “other car sharing companies willing to work with” the city will ultimately emerge in their place.
Some councillors, however, are not so convinced.
At city council on Thursday, Ward 19 Coun. Mike Layton moved a motion asking staff to “further consult with the free floating car share industry” and to report back on June 26 on whether “any changes are recommended to improve the viability” of the pilot.
“With this news information, city council has a responsibility to take an earlier than anticipated look at the impacts of the proposed restrictions on the free floating car share pilot,” Layton’s motion states.
In a message posted to Twitter on Thursday morning Deputy Mayor Ana Bailão also expressed concern about the disappearance of car2go from the city.
“Very disappointing. I have been a supporter (and car-sharing user) and know the only way we can deal with congestion in our city is by providing a variety of convenient & safe ways for people to get around - transit, cycling, car sharing - all part of the solution!” she said.
Car2go has previously suggested that for each of its vehicles in operation, another 11 are taken off city streets.
