Zipcar Killer? Daimler's Car2Go

Zipcar Killer? Daimler's Car2Go Rental System Comes to the States

Daimler announced that car2go, its on-the-fly car rental program, launched in Austin, Texas, today with a fleet of 200 Smartcar fortwos available for rent to members. Customers who register for car2go receive a membership card with an RFID tag that can open any car in the fleet and, in conjunction with a PIN code, acts as the key for the cars.

What sets this program apart from others like it, such as Zipcar, is that there is no need for preregistration, and the vehicles are "untethered." This means that "you don't have to decide upfront for how long you will be using the vehicle," says Jerome Guillen, director if business innovation at Daimler. "Therefore, there are no penalties," for going over a set time limit, he says.

Car2go uses GPS devices to help customers locate available cars. If customers find themselves without a smartphone or internet access, they can simply walk up to a car to see if it is available. If the car is reserved, a screen on the back windshield of the vehicle gives the location of the closest available car ready for use. Guillen assures PM that privacy concerns with these monitored GPS devices have been taken into account. "We do not know where the cars are while they are being used," he says. "We're not tracking you—the car shows up in the system only when you terminate the rental."

Taking into account privacy concerns in the tracking system creates a challenge for Daimler, who must keep tabs on the availability of hundreds of rentals that are constantly in flux. "We have to manage a network [where] we don't know where the cars are or how long people will be using them," says Guillen. But with a group in Ulm, Germany, that manages software issues, another that deals with data mining and network issues and a problem-free pilot program under its belts, Guillen is confident they can easily manage the network.

The car2go program in Ulm costs users roughly 25-cents a minute, $12.75 per hour and $64 per day. The prices for Austin are not available yet and will take into account local gas prices (which are lower than in Europe), insurance, cost of vehicles, taxes, registration and parking