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Why Businesses Are Turning to Car-Sharing for Company Cars

Instead of companies investing in their own vehicles, employees have access to WeGo cars at anytime. Employees can unlock the cars with the WeGo app and a manager's permission.

You know the collaborative consumption trend is taking off when it starts infiltrating business practices. The good news is, it is. Increasingly, forward-thinking companies are considering ways to share resources, such as turning to car-sharing services for company cars rather than owning their own fleet.

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Ride-share companies aren't having an easy go of it in America's big cities.
Today the car-sharing startup Relay Rides suspended their services in New York City after a judge ruled the company was breaking city taxi laws. Last week, it was SideCar, which shut down services in New York after receiving a cease-and-desist letter from New York Department of Financial Services.
This isn't the first time ride-share startups have taken heat from big cities. Cab-hailing app Uber fought a very public battle with the city of Austin during this year's SXSW festival in March. The companies argue that they aren't actually taxi services, so don't have to play by their rules. The taxi biz disagrees. From the Wall Street Journal:
"This is an extremely simple issue. If you are acting as a taxi or a car service, without the benefit of a license, the TLC will shut you down,” said Allan J. Fromberg, deputy commissioner for public affairs at the Taxi and Limousine Commission. He added that “licensed drivers are drug-tested, their criminal background is checked, their vehicle is inspected to more stringent standards, they are insured to carry people professionally, the companies that dispatch these cars are fully accountable for the vehicle and for the actions of the driver, and it is our responsibility to ensure that the public has these protections when they get into a vehicle that is for hire."
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The key phrase there is "acting as a taxi or a car service." Is this what ride-share startups are doing, or is it more like a friend offering you a lift if you're both heading the same way?
The hair-splitting there will determine the future of this rocky, but burgeoning, industry. New York has approved Uber and fellow taxi-hailng app Hailo, but the difference is those apps are used mainly to help locate legacy cabs, not threaten to replace them.
But if history teaches us anything, it's that the future can't be stopped. "Innovation, by its nature, does not always fit within existing structures," writes RelayRides on its company blog. "We remain committed to the democratization of car sharing."
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21st Century Hitchhiking: Social Carpooling Launches on East Coast

California’s leading carpool company is now bi-coastal. Zimride is now trying to steal away passengers from Chinatown buses up and down the Northeast.

California’s leading carpool company is now bi-coastal. Starting this week, Zimride will help drivers in the Northeast sell rides in their private cars as they travel between New York, Washington, D.C., and Boston—and, if anyone is willing to pay for a seat, anywhere else.

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BMW Launches "DriveNow" Car-Sharing System in Munich

More signs that the era of the personal automobile may be slowly coming to an end: BMW's new car-sharing system looks great.


More signs that the era of the personal automobile may be slowly coming to an end: BMW is launching an interesting new car-sharing system in Munich next month, with plans to bring it worldwide.

Called DriveNow, the system will use about 300 cars—both Mini Coopers and BMW 1-Series models. After registering for the system for a one-time payment of €29 (about $41 at the moment), you can look up cars in your area, reserve a free one, unlock it electronically, drive it anywhere within the service boundaries, and drop it off wherever it's convenient. For each ride you simply pay 29 cents per minute, up to €14.90 (about $21) per hour (you pay no extra for gas).

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Meg Whitman, ZipCar Join Forces Meg Whitman, ZipCar Join Forces

When Meg Whitman ran for governor she wasn't all that friendly to alternative transit. So why is she teaming up with a carsharing company?

ZipCar has a new heavyweight of corporate America on its board of directors. Meg Whitman took eBay from a $4 million website to an $8 billion retail game changer. She steered strategy at Walt Disney, Proctor and Gamble, and Hasbro before that. Californians are more familiar with her recent failed attempt at the governor's mansion. She ran on a Republican platform that wasn't especially friendly to alternative transit.

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