PSA Joins French Partners in U.S. Car-Sharing Business

PSA Group is teaming up with two other French companies to launch a car-sharing business in California.

PSA and insurance provider MAIF are investing a combined €15 million ($15.8 million) in TravelCar, a five-year-old company that provides peer-to-peer car-sharing at airports and trains stations in Europe. The U.S. operation is due to launch in April at airports in Los Angeles in San Francisco.

Under the plan, members who provide their own vehicles for the service will receive an unspecified cut of rental fees charged to users. Rental rates are expected to be about half the amount charged by traditional car rental firms. Parking at the airport will be free.

Members who choose not to share their vehicles will still be eligible for reduced airport parking fees, according to the partners.

TravelCar currently has 300,000 users at more than 200 locations in 10 European countries. Company officials point to the firm’s lean operations and strong local partnerships for its success, while claiming competitors have failed due to a mix of financial and operating problems. MAIF provides insurance for TravelCar owners and renters.

PSA says the business is the first step in its efforts to re-enter the North American market, which the carmaker announced as part of last year’s “Push to Pass” strategic plan. Peugeot hasn’t sold cars in the U.S. in about 25 years.

The TravelCar partnership is part of PSA’s growing Free2Move mobility services unit, which the company identifies as a second core business after car manufacturing.  The company launched a French car-sharing partnership with Bollore Group in 2015 and is part of the Moticity and "emov" programs in Germany and Spain, respectively.