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Car sharing fills a niche in Budapest transport

Automotive

mol-limo

Recently launched car sharing services in Budapest are experiencing healthy demand on the market. Currently there are two players, and the competition has just begun, business daily Világgazdaság reported today.

The car sharing service of oil and gas company Mol, dubbed Limo, started on January 25, since when the number of registrations has already surpassed 10,000, Mol told Világgazdaság. So far, customers have generally used the service two times a day, for somewhat more than half an hour.

Competitor GreenGo launched in November 2016. Its cars are used on average for distances of 7 kilometers and for about 35-37 minutes, of which 10-12 minutes is spent parking, Bálint Michaletzky, CEO of GreenGo Car Europe, told Világgazdaság.

GreenGo started with a cautious business plan, using 45 electric cars, but due to demand has increased this number to 168. The aim is to expand to a fleet of 300-500 cars and a covered area of 80-90 square kilometers in Budapest, compared to the current 60 sq km.

The number of cars, service area and tariffs at Mol Limo show a striking resemblance to those at GreenGo, which is surprising, Michaletzky remarked. GreenGo earlier held negotiations with Mol regarding potential cooperation, but these failed, only to see Mol starting its own service with very similar conditions.

Once both companies are operating with full planned fleets, about 600-1,000 cars will be available for sharing in Budapest. The service represents a niche between using public transport and taxis or private cars, Világgazdaság observed.

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