A Car2Go vehicle is shown in Vancouver on December 18, 2019. THE CANADIAN PRESS/Jonathan Hayward

Share Now, formerly Car2Go, leaves Canada with valuable data in changing market: expert

Vancouver was its largest market in North America, with more than 300,000 customers

The car-sharing company formerly known as Car2Go is closing up shop in North America on Saturday, taking with it valuable data for automakers looking to the future, says one expert.

The data could show how frequently people choose car-sharing services over other forms of transit, how the use of their cars differs across neighbourhoods, and even how many trips a shared car typically completes before users complain it needs to be cleaned, said Marc-David Seidel, a professor at the University of British Columbia’s Sauder School of Business.

“I viewed the bulk of their entry into the car-sharing market as a large-scale experiment,” he said in a recent interview.

Share Now is the product of a 2019 merger between Car2go, owned by Mercedes-Benz’s parent company Daimler AG, and BMW Group’s car-sharing service Drive Now.

The auto giants behind the car-sharing company are using their experience to figure out how they will sell cars in a market that’s shifting away from car ownership, particularly in urban areas, said Seidel.

In an email, company spokeswoman Tiffany Young said Share Now aggregates anonymized data to evaluate supply and demand in order to optimize fleet distribution and to determine pricing. It also uses data to determine whether Share Now has the “right product mix” in its markets, she said.

Share Now will continue to operate in 17 cities, including several where its fleets are entirely electric.

Vancouver was Share Now’s largest market in North America with more than 300,000 customers, said Young. Last year, customers in the city took more than two million trips and drove more than 19 million kilometres, she said.

But North American markets lack the infrastructure necessary to support a large fleet of shared electric vehicles and Share Now believes the future of car sharing is electric, the company said in a statement announcing its withdrawal. It also cited rising operating costs and “rapidly evolving” competition.

Seidel said transit is changing so car-sharing and ride-hailing services will also compete with options such as dynamic bus routing, where buses run based on demand along major routes and may take different streets depending on where people want to get on and off.

The advent of autonomous or self-driving vehicles will also shift the transportation landscape, he said, creating risks and opportunities for automakers and ride-hailing companies alike.

For now, Share Now’s departure leaves a car-sharing gap in some cities, including Vancouver, where its services are most similar to those offered by Evo, another one-way car-sharing service created by the BC Automobile Association. About 150,000 Evo members complete more than 10,000 trips a day in the Lower Mainland, the company said.

READ MORE: Share Now, formerly Car2go, to halt service in Vancouver, Montreal

Earlier this month, Evo announced plans to expand its fleet by 250 vehicles this spring, and vice-president Tai Silvey said he’s talking with city officials about how municipal policies could support continued expansion.

So far, Evo exclusively uses Toyota Prius hybrid hatchbacks, whereas Share Now offered Smart cars and Mercedes hatchbacks and sedans.

Former Share Now members looking for different types of vehicles may look to Modo, a car-sharing co-operative with 22,000 members across Metro Vancouver, Vancouver Island, Squamish and the Okanagan.

Modo offers round-trip car sharing, as opposed to one-way trips.

— With files from The Associated Press

The Canadian Press

Like us on Facebook and follow us on Twitter

Transportation

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Temporary jobs added at 49th Parallel to handle the extra workload created by COVID-19

Social atmosphere that goes with shopping shouldn’t be continuing

Outdoor spaces abundant in Saltair to maintain physical distancing

Area G director weighs in on how the community’s handling COVID-19 protocol

Sweet treat helps make Chemainus Health Care Centre workers feel complete

Girl Guide cookies always in good taste when showing appreciation

North Cowichan awarded grant to continue sensitive ecosystem work

Opportunity made possible through the Coastal Douglas Fir Conservation Partnership

Kevin Timothy to plead guilty to animal cruelty charge

He will appear at the Duncan courthouse on June 23

B.C. records five new COVID-19 deaths, ‘zero chance’ life will return to normal in April

Province continue to have a recovery rate of about 50 per cent

Long list of events disrupted by COVID-19 around the community

Challenging situation affecting fundraisers, entertainment, sports and more

Two inmates at prison housing Robert Pickton test positive for COVID-19

Correctional Service of Canada did not release any details on the identities of the inmates

BC SPCA launches matching campaign to help vulnerable animals after big donations

Two BC SPCA donors have offered up to $65,000 in matching donations

Anti-tax group calls for MPs, senators to donate scheduled pay raises to charity

Bill C-30, adopted 15 years ago, mandates the salary and allowance increases each calendar year

Two arrested after man lies about COVID-19 illness to stay in Victoria Airbnb for free

Victoria Police found stolen goods inside the occupied unit

Liberals delay release of 75% wage subsidy details, costs: Morneau

Program will provide up to $847 per week for each worker

Nanaimo dentists donate 4,000 masks, 25,000 gloves to health-care peers

Nanaimo District Dental Society collects items for front-line workers during COVID-19 pandemic

No laws in B.C. to force businesses to offer refunds, even during a pandemic

Black Press Media talks to Consumer Protection BC on how to navigate during COVID-19

Most Read