Car2go, a minute-by-minute car rental provision, raises its charges for small trips. The company stated that the purpose of doing this is to provide the option of flexible pricing.
The customers of this company were informed about this price hike through email. According to the email, the company has conducted an analysis of its product, packages, and policies. The conclusion of this analysis is that they will introduce a new payment process, which will vary depending on the time, place and day. This new price will be effective from next month.
What Does This Mean for Car2Go Customers?
It’s no surprise that this will result in Car2go consumers paying more. The organization has provided a new reasonable per-minute charge of 35 cents, compared to the existing 45 cents. However, it’s easy to presume that the lower price will only be available at certain times, places and days, that are not likely to be in demand. On the contrary, the jacked-up price of 49 cents is more likely to be applied when cars are high in demand or in a popular location.
All the time frames provided by the company, be it 30 minutes or 4 hours, are mounting in rates. Hence, it is estimated that the customer would likely be paying as much as a third more than before. For example, a two-hour block that currently costs $29, would most likely cost between $30 – $39 from next month.
This would still work for the company, however, as they have used the same technique that most car service providers like Uber use. The customer wouldn’t know the exact price of the service until they actually open the app and fill in the details. When a customer reaches this stage, it’s very likely that they will book, regardless of the price.
A good option for users is choosing the full day packages, as they are low-prices, even under the new price options. However, this package no longer involves miles. Earlier the platform would provide a 24-hour pass at $79, now it will cost about $70. However, due to the exclusion of miles, the customer will exceed $70 if they cross 50 miles. Hence, this package works best if you’re hiring a car over the weekend, but not traveling very far.
BMW’s Role
The company opted to make these changes only 6 months after it partnered with BMW-Daimler Share Now. This company has a number of car-share facilities all around the world and it aims to merge all of them under one umbrella brand soon.
In conclusion, like all car services, Car2go remains vital, but not as affordable as it used to be.
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