Car2go, a car rental app that lets users pay by the minute, is significantly raising its rates, according to a report by TechCrunch.
The company said it’s going to start using variable pricing, based on how busy the service is and the time, location and day, something similar to what Uber does.
The company said it is “constantly evaluating our product, packages, and pricing strategies” and that the new pricing system will start next month. The new pricing systems means that everyone who uses the service will probably be paying more.
The company said that its new per-minute rate could be as low as 35 cents, but that rate will only be available at certain times. Also, it said that when the service is busy, it could cost up to 49 cents a minute.
All of the blocks of time are going up in price as well. The company now shows floor rates, meaning the lowest possible rate, but those rates are again, subject to the variability. The news report said a company can be fairly secretive when it comes to letting people know how rates are calculated.
A two-hour block with the company goes for $29 right now, and it’s going to go up to somewhere between $30 and $39. The company says that day-long packages are less expensive than they used to be, but now they don’t include mileage. A 24-hour pass used to cost $79, and now it’s down to $70, but it also costs 19 cents a mile.
There’s also a new zone-based charge and refund system that encourages drivers to return cars to a central zone and punishes those that don’t. If a driver leaves the central zone there’s a $5 charge, and if someone brings a car back from an outer zone they’ll get $5, or the price of the trip if it’s under that.
Also, the first 200 trips in the calendar year have an additional $1 fee.