Thomas Beermann, CEO car2go Europe GmbH

DAIMLER’S Car2Go is currently planning an Australian introduction that would make it the first one-way car-sharing service in the market, giving users access to Mercedes-Benz models that can be stationed nearly anywhere.

Differentiating itself from established services such as GoGet and Car Next Door, Car2Go allows drivers to take vehicles on one-way journeys instead of returning cars to their pick-up point and it could debut Down Under around mid-2019.

In Australia for the Smart Mobility Show held in Melbourne this week, Car2Go Europe chief executive officer Thomas Beermann confirmed to GoAuto that the car-sharing service is expected to launch in Melbourne and Sydney, and could spread to other capital cities around the country.

“In the first analysis, we looked at five Australian cities – Adelaide, Perth, Brisbane, Melbourne and Sydney – we did an analysis of population, trips and potential and came to the conclusion that, as a potential for a launch, the three cities of Melbourne, Sydney and Brisbane are very likely, with Melbourne and Sydney being the favourites,” he said.

“Brisbane being not so easy because it’s a very widespread city but having spent a few days now in Brisbane it’s a very fast-growing city, if not the fastest growing city in Australia, so these are the three cities we are really looking at.”

However, the distinctive ride-sharing proposition means unique hurdles, such as widespread city parking permissions, to overcome before the service can be brought to market, according to Mr Beermann.

G2G: Although Car2Go offers Smart-branded cars in overseas markets, in Australia the service will stick with Mercedes-Benz vehicles including the A-Class and CLA sedan.

“In order for us to launch, it is essential that we get a parking regulation that covers the entire business area, the parking regulation needs to include access to all parking – paid parking, metered parking and also residential parking,” he said.

“Why residential parking? Our members are residents so they should be treated equally to those who own their car.

“And in this context, we need the support of the cities. Why is Australia, especially Melbourne and Sydney, challenging? Because the area of Melbourne and Sydney are both made up of multiple cities and we need to find an overlying agreement which includes all of these.”

Mr Beermann revealed that the groundwork for the local Car2Go launch has already begun, which could lead to the service hitting city streets within the next 12 months.

“We have a business development manager on the ground, Malcolm Noyle, he’s been working since the beginning of the year talking to all the officials and once we have a parking agreement, the launch timeframe is … six-to-nine months, so meaning if we would have an agreement with the city of Sydney by the 1st of October, it is likely to launch in a timeframe 1st of April, 1st of July next year,” he said.

Car2Go charges for vehicle use per minute with discounts for hourly or daily use that includes parking fees and petrol consumption.

In its 24 overseas markets, the service offers city-orientated Smart cars, as well as the Mercedes-Benz A-Class, B-Class, CLA sedan and GLA crossover, with fleet sizes ranging from 250 to 1100 units.

Plug-in electric vehicles are also available Amsterdam, Madrid and Stuttgart.

Mr Beermann confirmed that the initial vehicle offerings will be internal-combustion-engined Mercedes-Benz vehicles, with plans to expand to EVs in the future as Australia’s charging infrastructure ramps ups.

“The first launch will be initially combustion engines because the first ambition and aim will be a successful, reliable business model in Australia,” he said.

“In parallel, as we did in Europe, we will talk to the cities (on) how to implement electric charging infrastructure and then we need to find a timeline, I don’t know, three, four, five years where we can do a transition for the future going into electric – the same as what we did in Europe in certain phases, you start first of all starting the business model and then you transfer to EVs.”

Earlier this year, a merger between Car2Go and BMW’s DriveNow car-sharing service was announced, which will eventually lead to Bavarian-badged vehicles under the service, according to Mr Beermann.

“It will be Mercedes vehicles and looking forward into the planned new joint venture between BMW and Mercedes of course, there will be a mixed fleet,” he said.

By Tung Nguyen