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Daimler Drops Car Share Service in U.K.
Poor interest in Daimler AG's Car2Go car-sharing service in England has prompted the company to withdraw from the British marketplace.
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Poor interest in Daimler AG's Car2Go car-sharing service in England has prompted the company to withdraw from the British marketplace.
Daimler began testing the concept in Germany six years ago. Since then the company has deployed more than 11,000 cars in 25 cities in Europe, Canada and the U.S. Car2go has about 750,000 registered users, including 70,000 in Germany.
But in England Daimler failed to generate the five to eight daily bookings, representing a customer base of at least 10,000, to make the business sustainable.
The company attributes the failure to the U.K.'s "strong culture" of private vehicle ownership and the rigors of coordinating the short-term rental service in London with 32 separate authorities.
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