Free2Move is expanding to the West Coast this year — a move that signals the company feels confident in its business model, despite pandemic-related disruptions to the shared mobility space.
Free2Move, the short-term vehicle rental operation of Stellantis — the merger between Fiat Chrysler Automobiles and France’s PSA Group — operates a fleet for its app-based service that can be rented by the minute, hour or day in Washington, D.C.
Free2Move will bring a fleet of 200 Jeep Renegades to Portland, Ore., this spring or summer to expand upon the success of its operation in Washington over the past few years, the company said this month. The fleet could grow to 300 in its first year.
“Now that we’ve solidified ourselves in D.C. and we’re understanding the business, understanding how it works, usage cases, it was time to start our expansion,” Lynn Blake, PSA North America vice president for mobility, told Automotive News. “Portland actually has a rich history and background with car-sharing. We believed it was a great complement for us to go there amongst its other mobility services.”
Similarities between D.C. and Portland — where short-term rentals complement public transport and other forms of shared mobility — prompted the company’s expansion.
“People are really using this to supplement their public transportation needs, to carry heavy or bulk items. They use it for short trips to big-box stores, to grocery stores,” Blake said. “But also, they supplement it as a weekend vehicle as well, especially if they do not own a vehicle.
“The plan for us had always been to expand once we understood how to get Washington, D.C., to sustainability,” she added. “We’ve done a lot to understand the cost structure and how to optimize the cost structure in order to be successful in the business.”
Free2Move’s expansion comes as major auto companies have reassessed mobility models, such as their short-term rental offerings, in recent years. Some forms of shared mobility also took hits because of the pandemic; ride-hailing, for instance, saw a massive decline as consumers shied from sharing rides with strangers. Blake said Free2Move saw declines in usage while stay-at-home orders were in effect, and increases once restrictions were lifted.
Both scenarios have prepared the company to examine how consumers use the service, Blake said.
“Things are going to change over time, and we’re going to have to monitor that to understand how usage changes as people go back to work and what their actual needs are,” she said.