Calgary commuters drive car2go into growth fast lane
Calgary commuters are driving up sales at car2go, the ever-popular car-sharing company that grew faster here than in any other North American market over the past year.
The company, which started in Germany, nearly tripled its Calgary fleet of blue and silver Smart cars in the past 12 months, putting 400 cars on the road, and registered 35,000 customers. In the company’s first year in Vancouver, it claimed 21,000 paid users.
Spokeswoman Katie Stafford said there wasn’t a convenient, flexible car-sharing service available in Calgary before car2go hit the city’s streets. In Vancouver, where growth was slower, she said there are other, similar businesses and a greater use of public transit.
The sales boom in Calgary has made it one of car2go’s fastest-growing markets among the company’s 21 cities in Europe and North America, including its two other Canadian locations: Vancouver and Toronto.
“With the growth potential we’ve seen from 150 to 400 cars in Calgary, there very well could be more room to grow,” said Jonathon Wycoco, car2go’s location manager who is responsible for operations in the city.
Calgary Carshare, a car2go competitor, operates a fleet of six differently sized vehicles, from a Prius to a minivan, that customers can rent for as little as 15 minutes. The nonprofit co-op requires its 150 members leave their vehicle at the same spot where they had picked it up.
Stafford said what makes car2go unique is that customers don’t have to drop off their vehicles at a specific location, but can leave them at any legal parking spot within a 110-square kilometre area surrounding downtown, without plugging change into the meter.
Calgary Carshare, which has been operating for 14 years, isn’t too concerned about the competition. Chairwoman Tracey Braun said her co-op and car2go offer slightly different services and share some of the same customers who simply want greater choice when they commute.
“Anything that helps people in Calgary be able to get past owning and be able to share a vehicle is a positive experience,” she said. “If you are sharing, you are able to use transit, walk, cycle or car share as the need arises,” she added.
The convenience factor at car2go continues to attract new customers.
Dylan Keating, a young professional who lives in southwest Calgary, signed up this week after he decided to donate his old car to charity. He rides his bicycle to work but needs a vehicle to bring home groceries and tote around his instruments for jam sessions.
“Everyone I know is struggling to make car payments and it seems like with car2go, you have the ability to have the car when you need it but not commit to owning one or paying for the repairs,” Keating said.
Car2go’s members can book a smart car up to 30 minutes in advance — Calgary Carshare users can reserve a vehicle for up to a year — or find one close by on the company’s website. They can even receive push notifications on their smartphones once a car becomes available in their area. They pay a $35 membership fee, plus 38 cents per minute, up to a daily total of $72.99 plus tax.
In Calgary, and largely across all 21 cities, the average trip runs about 30 minutes, creating a real niche market that separates the company from traditional rental companies, Stafford said.
“It shows that there is a real need for these short-term trips that may be a little bit further than what public transit can take you and a little bit further than you would necessarily walk,” she said.
Pat Dyer, director of marketing at Practicar Car and Truck Rentals, lauded car2go’s specialized business model, which he said would not compete with his traditional firm that offers different classes of cars and longer renting cycles with different rates.
“It’s quite a good idea, but the model is completely different and opposite from what the franchises at Practicar Car and Truck Rentals and even Rent-a-Wreck Canada have, Dyer said.