Hundreds of thousands of Car2Go members to lose service as company pulls out of North America

The car-share service Share Now, formerly known as Car2Go, said Wednesday it will shut down operations in North America early next year.

The Germancompany, which recently merged with the car-share serviceDriveNow under the name Share Now, says its last day of service will be Feb.29, 2020.

Share Now has over 800,000 customers in North America. In Canada, it operates in Vancouver and Montreal. In Vancouver, the company's top market in North America, it has some 236,000 customers.

The closure will also affect riders in Chicago, New York City, Seattle and Washington.

Share Now blamed the shutdown on the "volatile state of the global mobility landscape" citing increasedcompetition among car-share services, rising operating costs and the lack of infrastructure to support new technology such as electric vehicles.

The Stuttgart, Germany-basedcompany said in a statement it will also stop operating in London, Brussels and Florence, Italydue to low usage.It will continue to operate in 18 other cities in Europe including Berlin, Amsterdam and Madrid.

"We deeply regret the inconvenience this decision causes," Share Now said.

Already exited Calgary, Toronto

The company recently suffered major setbacks in North America.

It pulled out ofToronto in May 2018, blaming new city rules that rendered its service "inoperable," and abruptly left Calgary in October, where it was the only car-share service in operation. It also exitedDenver;Portland, Ore.;Austin, Texas;and Chicago.

Car2Gomerged with the German car-share service Drive Now in February 2019 under the name Share Now, although the fleet's branding in Canada stayed largely the same.

ShareNow saidit's pivoting to electric vehicles as part of its future strategy.

Patrick Condon, a University of British Columbia professor who studies sustainable urban design, said the company'spricing scheme hindered its business model. Its Smart carsgo for32 to 42 cents per minuteand $14 to $18 per hour.Evo, anotherVancouver car-share service, hassimilar prices.

"It's cheaper than the other options if your trip is only 10 minutes," Condon said.

"But if you want to have the car for an hour or so,it's much more expensive to use Car2Go. That put itin a position of only being useful for very short trips."

That puts theservice in competition with cheaper options such astransit, biking or walking, Condon said.

In comparison, members withModo, another car-share service in Vancouver, pay $5 hour per hour, on top of a $6 monthly fee.

Tai Silvey, the vice president ofEvo, a car sharing service created by the British Columbia Automobile Association (BCAA), said car sharing is a "complex and expensive business. It's not easy to run."

He said while Share Now's departure will ease Evo's competition in the city, having a selection of transportation options is key.

"Choice is always a good thingfor consumers so it's a sad day for that," he said, adding that "Evo is committed to Vancouver and here for the long term."

Ride-hailing to come to B.C.

Vancouver Mayor Kennedy Stewart said the company'sdeparture isn't surprising andhighlights the need for better transit in the city.

He's pushing for federal and provincial funding for a SkyTrain line to the University of British Columbia,the electrification of the bus system and more rapid buses around the region.

"In the end, it's not private gas-powered automobiles that are the future," he told reporters after a council meeting."It's electrification and transit that we need."

B.C. Transportation Minister Claire Trevena said the province is looking at offering as many transportation options as possible, including the arrival of ride-hailing.

The province this weekapproved the first ride-hailing company in B.C. It's reviewing 23 applications from other companies, including Uber and Lyft.