car2go
A Daimler-founded, app-based carsharing brand that pioneered free-floating one-way rentals.
Last updated August 24, 2026
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- Oct 29, 2026
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- Oct 31, 2026
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Overview
car2go was a German carsharing brand created by Daimler, later Mercedes-Benz Group, as an urban mobility service. It allowed registered customers to locate, reserve, unlock and return vehicles through a mobile application, generally without requiring a fixed pickup-and-return station. The service was designed around free-floating, one-way rentals: customers could take an available vehicle within a defined operating area and leave it in an authorized parking location inside that area. Pricing was typically calculated by the minute, with hourly and daily rates also available in many markets. The service began in Ulm, Germany, in October 2008. Daimler initially developed it through an internal business innovation unit and tested it with company employees before opening the concept to the public. Its early fleet focused on small smart vehicles, especially the two-seat smart fortwo, making the brand particularly associated with compact cars that could be parked efficiently in dense urban environments. Some markets also received electric versions. The operating model combined vehicle rental, insurance, fuel or charging, maintenance and eligible parking arrangements into a relatively simple usage fee, while a smartphone application handled vehicle discovery and access. During the 2010s, car2go expanded internationally across European and North American cities. Its growth reflected the broader shift toward digitally enabled mobility services and the idea that urban customers might prefer short-term access to a vehicle over ownership. However, the model faced substantial local constraints. Fleet utilization, municipal parking rules, charging infrastructure, operating costs and competition from other carsharing, ride-hailing and transport services varied sharply between cities. In London and Birmingham, the service was withdrawn after a relatively short period. San Diego also exposed the difficulty of operating an electric fleet where public charging infrastructure was insufficient; the local fleet was changed from electric vehicles to gasoline-powered cars in 2016, and the service subsequently exited the market. Daimler consolidated ownership of the European car2go business in 2018 after acquiring Europcar's minority stake. The same year, Daimler and BMW announced plans to combine their mobility-service activities. The transaction created Share Now, a joint carsharing company combining car2go with BMW's DriveNow. Share Now offered vehicles from several brands and operated in European and, for a time, North American cities. The combination sought to improve scale and strengthen the companies' position in an increasingly competitive mobility market. In late 2019, Share Now announced the closure of its North American operations and selected European markets. The company cited competitive pressure, high operating costs and limitations connected with electric-vehicle infrastructure, while also pointing to differences in usage and growth potential between cities. The North American shutdown took effect on February 29, 2020; London, Brussels and Florence were also among the locations scheduled to close. The remaining business was concentrated in European cities where the company believed the service had better prospects. Stellantis announced its acquisition of Share Now in 2022, and the transaction closed in July of that year through Stellantis subsidiary Free2Move. Share Now was subsequently integrated into Free2Move, with the integration process substantially completed by April 2024. As a result, car2go no longer operates as an independent Mercedes-Benz mobility brand. Its legacy remains significant in the development of app-based, free-floating carsharing and in Daimler's broader attempt to extend its business beyond vehicle manufacturing into mobility services.
History
Daimler introduced car2go in Ulm, Germany, in October 2008. The project originated inside a Daimler business innovation unit and was initially tested by Daimler employees. Its central proposition was different from conventional car rental: customers could use a vehicle for short periods, locate it electronically and return it anywhere within a designated service zone rather than at a fixed rental counter or station. The early service was closely linked to the smart brand. Small smart fortwo vehicles made the concept practical in crowded cities, where compact dimensions and flexible parking could provide an advantage. Customers generally used a mobile application or related digital tools to identify available vehicles, check fuel or battery status, reserve a car and unlock it. Charges were commonly based on minutes used, with fixed hourly or daily options in some markets. Rates and operating rules differed by city, while the bundled price generally included rental, insurance, fuel or charging, maintenance and permitted parking. After establishing itself in Germany, car2go expanded into other European and North American markets. The brand became one of the most visible examples of free-floating carsharing and helped establish a model later adopted or adapted by other mobility companies. Its international expansion also revealed the operational difficulties of city-by-city mobility businesses. Municipal regulations, parking availability, fleet utilization, local competition and charging infrastructure had a direct effect on profitability. In San Diego, for example, limited charging availability reduced the usability of an electric fleet, leading to a switch to gasoline vehicles in 2016 and an eventual market exit. The service also withdrew from London and Birmingham after relatively short periods. Daimler continued to reorganize its mobility activities as competition intensified. In March 2018, Daimler announced that it had purchased Europcar's minority holding in the European car2go subsidiary, bringing its ownership to 100 percent. Daimler and BMW then combined car2go and DriveNow, BMW's carsharing operation. The new company, Share Now, offered free-floating carsharing in selected cities and used vehicles associated with both manufacturers and other brands. The combined company reduced its geographic footprint in late 2019. It announced the closure of all North American operations, including service in New York, Seattle, Denver, Austin, Washington, Montreal and Vancouver, effective February 29, 2020. It also planned to leave London, Brussels and Florence. The stated reasons included intense competition, high operating costs, insufficient electric-vehicle infrastructure and weak or inadequate usage in some markets. Share Now retained a European network focused on cities considered more promising for profitable growth and mobility innovation. Stellantis announced the purchase of Share Now in May 2022, and the deal closed on July 18, 2022. Free2Move, Stellantis' mobility division, assumed responsibility for the acquired business. Share Now was gradually integrated into Free2Move, with the process substantially completed by April 2024. car2go therefore survives primarily as an important predecessor brand in the history of Daimler's mobility strategy and of app-based, one-way urban carsharing, rather than as an active standalone service.
- 2024
Integration into Free2Move substantially completed
[1]The Share Now business was gradually absorbed into Stellantis' Free2Move mobility division.
- 2022
Stellantis acquisition closes
[1]Stellantis completed its acquisition of Share Now through Free2Move.
- 2020
North American operations end
[1]Share Now ended service in its remaining North American markets on February 29.
- 2019
Geographic downsizing announced
[1]Share Now announced exits from North America and several European cities.
- 2018
Daimler obtains full European ownership
[1]Daimler acquired Europcar's minority stake in the European car2go subsidiary.
- 2018
Share Now is formed
[1]Daimler and BMW combined their carsharing businesses, car2go and DriveNow, under the Share Now company.
- 2016
San Diego fleet changes from electric to gasoline
[1]Charging-station shortages led the San Diego operation to replace its all-electric fleet with gasoline-powered cars.
- 2008
Pilot launched in Ulm
[1]Daimler began testing car2go in Ulm, Germany, initially limiting the program to company employees.
Products and positioning
A technology-enabled urban mobility service offering convenient access to compact vehicles without the obligations of ownership, with emphasis on short trips, flexible parking and app-based self-service.
Urban mobility service · 2008
Free-floating carsharing
car2go's core offering allowed customers to find, reserve, unlock and use vehicles through a digital platform, then end a trip in an authorized location within the operating zone. The model was intended for flexible point-to-point travel and avoided the fixed-station return requirement common in traditional car rental. Billing was generally calculated by the minute, with hourly and daily pricing available in some markets.
Carsharing vehicle fleet · 2008
smart fortwo fleet
The smart fortwo was the signature vehicle associated with car2go. Its two-seat layout and small footprint suited dense urban streets and limited parking spaces. Fleets included gasoline-powered versions and, in selected markets, electric versions. The precise vehicle mix changed by city and over time.
Digital mobility platform · 2008
Mobile application
The car2go application supported the main customer journey: locating nearby vehicles, viewing fuel or battery information, reserving a vehicle and accessing it. This digital layer was central to the free-floating model because it connected a distributed fleet with users without requiring staffed rental branches.
Controversies
2021
Car2Go settles driver protection fee class action
A class action concerning Car2Go's driver protection fee was settled for $1 million. The settlement applies to eligible users in British Columbia, Alberta and Ontario, and in Quebec under a separate qualifying date. The article reports the settlement but does not state the date it occurred.
Brand decisions
2022
Sell Share Now to StellantisM&ABackground
Daimler and BMW agreed to divest the carsharing operation as the mobility market became more competitive and the companies refocused their strategies.
Action taken
Stellantis acquired Share Now through its Free2Move subsidiary; the transaction closed on July 18, 2022.
Aftermath
Share Now was gradually integrated into Free2Move, ending its separate identity as a Daimler-BMW mobility company.
2019
Withdraw from North America and selected European citiesStrategyBackground
Share Now reported excessive competition, high operating costs, insufficient electric-vehicle infrastructure and inadequate usage in some locations.
Action taken
The company announced the closure of all remaining North American operations and service in London, Brussels and Florence.
Aftermath
The business concentrated on 18 European cities regarded as having stronger prospects for profitable growth and mobility innovation.
2018
Acquire Europcar's minority stakeM&ABackground
Daimler sought full control of the European car2go business while preparing a broader combination of its mobility activities with BMW.
Action taken
Daimler acquired Europcar's 25 percent minority interest, bringing its ownership of the European subsidiary to 100 percent.
Aftermath
The ownership consolidation preceded the formation of Share Now with BMW's DriveNow business.
2018
Combine car2go and DriveNowM&ABackground
Daimler and BMW faced increasing competition in digitally enabled urban mobility and sought greater scale.
Action taken
The companies combined their carsharing subsidiaries under the Share Now company.
Aftermath
The merged operation continued carsharing in selected cities under joint Daimler and BMW ownership until its acquisition by Stellantis.
2016
Replace San Diego's electric fleetStrategyBackground
The San Diego operation faced a shortage of charging stations, leaving a significant portion of the electric fleet unavailable or difficult to use.
Action taken
car2go replaced the local all-electric fleet with gasoline-powered vehicles beginning May 1, 2016.
Aftermath
The service ultimately withdrew from San Diego at the end of 2016.
Recent events
- Unconfirmed
Car2Go settles driver protection fee class action[2]
Reported:
A class action concerning Car2Go's driver protection fee was settled for $1 million. The settlement applies to eligible users in British Columbia, Alberta and Ontario, and in Quebec under a separate qualifying date. The article reports the settlement but does not state the date it occurred.
Car2Go announces exit from North America[3]
Reported:
Car2Go announced that it would exit the North American market on February 29.
SHARE NOW announces exits from North America and three European cities[4]
SHARE NOW announced that it would leave the North American market and stop operations in London, Florence and Brussels. It said Car2Go operations in the United States and Canada would end on February 29 of the following year. The company cited market conditions, rising operating costs and low usage in the affected European cities.
Sources5 sources
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