Gig Car Share, a popular car rental service known for its convenient city-to-city errands and favored by those without personal vehicles in the East Bay, has announced it will cease operations by the close of 2024.
In an email sent to users on Wednesday evening, the company revealed that December 27, 2024, will be the final day for customers to utilize their distinctive black cars. This date also marks the deadline for using Gig Credits, which many users accumulate through prepayment for the service.
The company explained its decision by pointing to “challenges due to decreased demand, rising operational costs, and changes in consumer commuting patterns.” These factors have collectively made the service unsustainable in its current form.
A spokesperson for the American Automobile Association (AAA), GIG’s parent company and the parent of A3Ventures, its internal business development division, confirmed that the shutdown will extend to all GIG locations, including Seattle. Service in Sacramento had already been discontinued the previous year. Michelle Donati, representing AAA’s Northern California, Nevada, and Utah region, indicated that the closures will be implemented through a “gradual phase out,” with a progressive reduction in car availability over the next five months.
Gig Car Share began its operations in Oakland in 2017, quickly gaining recognition for its innovative approach. The service allowed users to pick up a vehicle at one location and return it at a different point within the service area, leveraging existing city parking infrastructure. East Bay cities collaborated with Gig to establish special “free-floating” permits, enabling the cars to utilize city and residential parking spaces without charge. This initiative was aimed at decreasing private car usage and improving transportation options for individuals facing “first or last-mile” challenges in connecting with public transit networks.
Oakland initially approved the free-floating car-sharing permit program in 2015, with the terms and conditions most recently updated by the Oakland Department of Transportation in 2022. This program facilitated the integration of gig car share into the urban transportation ecosystem.
Gig Car Share is the latest in a line of U.S. private car-sharing services to shut down. The early 21st century saw the emergence of companies like Zipcar, City CarShare, Car2Go, and Flexcar. Currently, Zipcar remains the only survivor from this initial wave, now joined by services like Turo, Sixt, and traditional rental companies such as Avis and Hertz, which cater more to extended rental periods. Getaround acquired many of City CarShare’s assets and services in 2016. The rise of ride-hailing apps like Uber and Lyft in the late 2000s also significantly addressed the last-mile transportation demand, though often at a higher cost per hour compared to car share options like gig car share.
Currently, Gig Car Share rates are approximately 60 cents per minute, $20 per hour, and $120 per day, positioning it as a cost-effective solution for short to medium-duration trips.
Details regarding the current fleet size in Berkeley and Oakland, or the future plans for the vehicles after the service ends, have not been disclosed. Gig Car Share has not yet responded to requests for further information about the business’s closure.
The impact on employment is also unclear. AAA’s A3V has investments in other companies, such as RapidSOS, a software platform for first responders, potentially offering alternative positions for some Gig Car Share employees.
Rob Prinz, advocacy director for Bike East Bay, suggested online that another company might take over the car share permit program established by East Bay cities like Oakland, Berkeley, Albany, Alameda, and El Cerrito for services like gig car share. This could provide a pathway for the continuation of car sharing in the region.
Users Lament the Loss of a Key Mobility Service
A GIG car was available in downtown Oakland on Wednesday afternoon
Image alt text: Gig car share vehicle parked on an Oakland street, illustrating the now-discontinued car sharing service.
The announcement of Gig Car Share’s closure has been met with disappointment from many users who relied on the service for their transportation needs.
On Reddit, user Tmotomm described the service as a “lifesaver” for individuals without cars, expressing deep disappointment with the decision. Another user shared that Gig had “made her life so much easier” over the past two years and was saddened by the impending shutdown.
Several users pointed out that the impact of losing Gig Car Share would be lessened if cities invested more in comprehensive public transportation systems.
Reddit user DJKN_EB commented, “These private corporations creating modes of transportation are a bandaid over numerous compounding policy failures. Our public transportation is a shame in this state. California deserves better,” highlighting a broader issue of public infrastructure investment.
Josh Holland, a Seattle resident, remarked on Twitter, “Car sharing is part of the formula for reducing individual car ownership in Seattle. We should be finding ways to make the model more sustainable in the city by reexamining parking rules for all vehicles and make it easier for car-sharing companies to get going,” emphasizing the importance of car sharing in urban transportation strategies.
Local students, particularly those without cars, are expected to be significantly affected by the closure.
Iris Kwok, a Berkeleyside reporter and UC Berkeley alumna, noted that Gig cars were essential for many, including herself, to access ethnic grocery stores in the East Bay that are not easily reachable by public transportation. The service was also frequently used for shopping trips to large stores like Costco and IKEA, underscoring its role in everyday errands.
Former Berkeley councilmember Rigel Robinson expressed his “heartbreak” upon hearing the news.
“This loss really hurts,” said Robinson, a Berkeley resident who relies on public transit and cycling. “Having car share options available for those who either can’t afford to own a vehicle themselves or choose not to is so valuable. There are a lot of types of trips that can only practically and realistically be accomplished by car,” highlighting the crucial role of services like gig car share in providing flexible transportation options.
Oakland photographer Fanny Garcia, a frequent user of the service for work, sent a letter to Gig Car Share immediately following the announcement, inquiring about potential options to maintain the service, demonstrating the immediate and personal impact of the closure on regular users.
Oakland transit user Daniel Levy, creator of a useful AC Transit app, described Gig Car Share as a “crucial fallback,” particularly for accessing regional parks, which are poorly served by bus routes. He emphasized that the service’s reservation-free model, similar to scooter rentals, was a significant advantage. The ability to spontaneously pick up a car and return it within the East Bay “HomeZone” offered unparalleled flexibility. He recounted a weekend trip to Tomales Bay, made possible by the convenience of Gig Car Share, a trip that would be more complicated with traditional rental services requiring fixed pickup and drop-off locations.
“This would be impossible to do with a rental car or Getaround, where you have to travel to and from the car’s parking location,” he concluded, underscoring the unique value proposition of gig car share and similar free-floating services.
Reporting contributed by Iris Kwok.
