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Car2Go app-based rental service launches in Chicago

An app that enables users to rent cars off the street launched in Chicago Wednesday. The service, called Car2Go, lets users pay to reserve rental cars, drive them and then drop them at designated parking spots.

The service is launching with 400 eco-friendly cars: a mix of Smart Fortwos, compact Mercedes-Benz sedans and SUVs. Car2Go is a subsidiary of Daimler North America.

Car2Go is available in Chicago and 24 other cities in North America, Europe and Asia and reports a user base of more than 3 million subscribers worldwide.

Users pay a one-time $5 signup fee when they register with the app. No reservations are required to book a car, and rates depend on the car you choose and the distance you drive.

Rides cost between 29 cents and 39 cents per minute, but prepaid packages based on a set number minutes and miles are available. Insurance, gas, parking and maintenance come at no extra cost, and users can rent the cars for multiple days.

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