Trendy Car Sharing Service Says MN is Worst Place On Continent for Business

Photo Via Car2Go Facebook

Minneapolis, MN – Minnesota’s high taxes and resulting unfriendly business environment is forcing another up-and-coming company to stop doing business in the state.

Car2Go, an hourly car-sharing company, recently announced they will no longer be doing business in Minnesota, pointing the blame at Minnesota’s business climate.

“While we have worked hard to support Car2Go in the Twin Cities, our business has been subjected to extremely high state car rental taxation rates, which has made the Twin Cities one of the most expensive places in North America to operate our service,” said the company on Facebook, saying they have, “done everything we can to be able to offer affordable pricing to our Twin Cities members.”

The post goes on to announce the closure, saying, “After careful consideration, we have made the very difficult decision to suspend Car2Go service in the Twin Cities.”

Car2Go launched their first Minnesota branch in Minneapolis in September, 2013, and opened a second branch in St. Paul in July, 2014.

Car2Go joins a long list of fallen companies in Minnesota. In January Polaris laid off half of its Twin Cities employees and announced the creation of a new factory in Alabama. In July, a 132-year-old St.Paul-based company AmClyde closed its doors, relocating the majority of the employees to Houston. Although no Minnesotans were laid off, in September, Honeywell decided to move its headquarters to Atlanta. This comes in addition to a massive “wealth migration” out of Minnesota by some of the state’s wealthiest inhabitants.

The last day of Car2Go service in Minnesota will be December 31, 2016.

Julia Erynn