Daimler AG is pulling the plug on offering its Car2Go car-sharing service in Miami and Miami Beach, blaming low utilization in that market on rental-car taxes. The pullback comes as many other auto makers are rushing to establish their own car-sharing networks or invest in existing ventures. Car2Go, an Austin, Texas-based service owned by the German auto maker, is falling flat in southern Florida. Daimler's Car2Go currently has a fleet of 300 company-owned Smart compact cars in Miami and Miami Beach, and 32,000 people have signed up for the program. Car2Go spokesman Brad Ducey said use of the service has been soft. A $1 rental-car charge, levied by the state, is seen as a reason for a lack of demand, Mr. Ducey said. He said taxi and ride-sharing services don't have the same $1 charge. Even though the fee seems like a small amount of money, he said the charges add up over time and affect consumer behavior. Car2Go isn't the first to blame its demise on ride-sharing giants, such as Uber Technologies Inc., which isn't subject to rental-car or car-sharing-service taxes. An expected rise in demand for car-sharing services has been a focal point for the auto industry as executives scramble to predict how car buying habits may change in coming years. General Motors Co. earlier this week launched a service like Daimler's, with executives saying there is an emerging group of customers who want to use cars, but not own them. GM's project, dubbed Maven, is one of several such services--following a pattern cut by larger sharing services, including Zipcar. Several auto makers have begun experimenting with their own vehicle-sharing ventures, while others have invested in established businesses. The Miami Herald first reported Car2Go's move from Miami. Mr. Ducey said the company is still committed to other markets it operates in, including Portland, San Diego, New York and Toronto. Vancouver is the city where Car2Go enjoys its biggest following. Car2Go buyers pay an initial $35 fee that covers the cost of administering a membership, and then pay a 41 cents for every minute the car is used, in addition to $1 to cover liability of that use. The additional $1 tax charged by Florida for rental-car services is on top of those fees charged by Car2Go. Write to John D. Stoll at john.stoll@wsj.com
Car2Go has decided to remove its car - sharing services from Miami and Miami Beach at the end of February due to low demand . The company cited the state 's $ 1 rental - car levy as the main drag on demand , whereas dominating players such as Uber are exempt from the rental - car or car - sharing - service taxes . This fall of another car - sharing company comes just when other auto ##makers , such as BMW , are entering into car - sharing in an effort to benefit from anticipated changes in consumer attitudes when it comes to car ownership .