How Do You Get a Car For a Loonie?

Andreas Kotal, President and CEO of CityFlitz pokes out of the sunroof of a MINI Clubmans during the launch of his auto-sharing service in the GTA today at Yonge-Dundas Square.CityFlitz, Toronto's newest auto-sharing company, showcased its $1 a day rental program in Toronto at Yonge-Dundas Square yesterday.

Its premise is simple: Drive around the city at least 30 kilometers a day in a car plastered with advertising, which heavily subsidizes the cost of the rental.

I took a test drive with Andreas Kotal, President and CEO of CityFlitz (pictured above with his head poking out of the sunroof of a MINI Clubmans) as we chatted about his new venture.

"It's most exciting today to see this idea taking off," said Kotal, a Toronto resident and graduate of York University's Schulich School of Business MBA program. "Inspiration came from a similar business model that was developed five years ago in Vienna, Austria, developed by former Formula One driver Niki Lauda. They now have a fleet of over 600 cars."

For less than the price of a TTC fare, members of CityFlitz can rent for a day a MINI Cooper, MINI Cooper Clubmans or a Smart car wrapped with in an advertisement from one of its clients. Yahoo! Canada is the first main partner.

Barb King signs up for CityFlitz's auto-sharing service in Toronto"We took this basic advertising model and based it around a rental model like the car-sharing companies in North America," said Kotal. "We gave Yahoo! maximum flexibility for their design. I find it very eye-catching. They look very sexy."

While opinions on the new ad-plastered Minis may differ for consumers, the idea is already a hit.

Barb King from Nova Scotia (above left) signs up for CityFlitz's new auto-sharing service in the GTA. "I think it's a fantastic idea," says King, who lived in Toronto for 30 years. "The advertising doesn't bother me."

CityFlitz Launch in Yonge-Dundas Square

CityFlitzers, as Kotal likes to call them, will be able to pick up their rental cars at parking lots conveniently located around the city nearby subway stations. "You'd be able to choose a location on a map and have 24/7 access to pick up your car," says Kotal.

While this idea sounds really cool, it's does have its drawbacks. Like becoming a mobile billboard, for one. Since each CityFlitz car in the fleet has a built-in GPS tracking system, this enables advertisers to have real-time information about the use of the car.

Aside from the 30 km minimum use per day, CityFlitz members are allowed unlimited mileage within the city after that. And CityFlitzers are responsible for topping up the gas upon completion of the rental.

A pleasant perk is the addition of Wi-Fi high speed internet. Which would be great for longer trips with bored passengers. But this may come in handy for iPhone users as well. And anyone with a laptop who gets lost and needs to quickly look up Google Maps. Or if you're a bored blogger stuck in gridlocked traffic.

CityFlitz launches its dollar-a-day car rental program in TorontoOne passerby at Yonge-Dundas Square thought told me he thought this idea should've been around 20 years ago. "It benefits the environment, the consumer and the manufacturer," said Anders Cullin, 32. "It's so much more accessible, appealing and practical."

There's a total of 13 Mini Clubmans plastered with Yahoo! Canada to rent from CityFlitz over the next 12 months. An additional three Mini Coopers with advertising partners North by Northeast Music & Film Festival and two Smart cars with Global Ryan's Petfoods.
CityFlitz makes its debut in Toronto, Canada
CityFlitz plans to accommodate all other major cities in Canada soon, starting with Vancouver and then Montreal.

To rent a car, CityFlitz members must be at least 23 years old and have a valid "G" driver's license as well as a credit card that includes rental car insurance coverage.

Members will pay a one time fully-refundable security deposit of $350 and a a one time $30 administrative processing fee. Other than that, there's a $7 monthly usage fee.

You can preregister for updates on the program at their website. You'll be able to sign up for a rental as of Monday, August 25.

"We've already had 300 people sign up since last Thursday when we kicked off our radio campaign," says Kotal. "The list is growing. Every 10 minutes someone else signs up. We want to give as many people the opportunity to drive one of our cars, so customers will be limited to a two-day rental in September. Come October, they will be able to rent our cars for a week at a time."

How does this formerly two-horse race stack up against Zipcar and AutoShare? Perhaps those of you who have tried these auto-share companies can comment on your experiences. Would you be amenable to join CityFlitz?

Photos by Roger Cullman.

Reader Reviews and Comments

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I'm not one to judge people by their kinks... but describing an ad-covered car as "sexy" is probably the reason why I'll never date an MBA.

Posted by: DH at August 21, 2008 8:21 AM

Blogto is turning into a shilling operation like no other...this isn't exactly "news" but or going ons may as well be a press release.

Posted by: m6j 416 at August 21, 2008 8:32 AM

As a cyclist, I always take note of really bad drivers in company cars. I then make a mental note NEVER to use that companies product or service.
If I was one of the companies advertising on these vehicles, I would be concerned about how the behaviours of some one driving a vehicle with my brand all over it might affect my business.

Although, we're so saturated with advertising as it is, these vehicles will probably just blend in with everything else.
What an assault on the eyes.

Posted by: stef at August 21, 2008 9:03 AM

"It benefits the environment, the consumer and the manufacturer..."

Oh, the wisdom of the passerby! It benefits the environment to require users drive a minimum of 30km per day? It benefits the manufacturer to reduce the total number of cars required to provide mobility to a given population?

I am an AutoShare user right now. It costs more than $1/day, sure, but there are per-km charges with no minimum milage (an incentive to drive less), you can offset your carbon for a minimal fee, and gas is included if you need to fill up. There are sedans, hatchbacks, vans, and sportier vehicles to choose from at a variety of price points.

I'm not sure I like the idea of a car service designed with the primary goal of increasing the number of mobile billboards on the road with (apparently) no structure promoting conservation.

Posted by: Greg Smith at August 21, 2008 9:13 AM

While I do think that the launch of CityFlitz is "news", I am confused as to why they are being called "auto sharing", and compared to us (AutoShare) or Zipcar, rather than traditional daily rental companies? I am flattered, of course, but please: car sharing, as the industry is known, has some basic, key elements that are simply not present (as far as I can tell) with CityFlitz:
- the goal is to reduce personal car ownership
- cars are available 24/7 self-serve
- fees are primarily per hour (and/or km), although daily rates are available
- insurance coverage is comprehensive and included ($2M for AutoShare, $1M for Zipcar)
- typical trips are 3 - 4 hours

While I understand the lure of ad-based rentals (Zipcar has had some in its fleet for a while, and we are in discussions), there is so much more to "auto sharing" than putting a couple of dozen "sexy" cars into a few parking lots in the city and collecting email addresses.

That said, there are many changes coming to our love affair with the automobile, and Cityflitz is another example (although not as I can tell of car sharing). I wish them all the best.

Posted by: Kevin McLaughlin at August 21, 2008 9:28 AM

Publisher's note: We're definitely not shilling for anyone. Are you saying this because we wrote about CityFlitz? Or is it because Roger's review wasn't negative enough?

Posted by: Tim at August 21, 2008 9:41 AM

This comment disturbs me a bit, "It benefits the environment, the consumer and the manufacturer," said Anders Cullin, 32. "It's so much more accessible, appealing and practical." Yet...they have a minimum distance expected? I dunno. What if I just wanted to rent the car to go to Ikea and back, or do a big grocery trip? I have to drive around to meet the requirement? Not very environmentally friendly.

Posted by: Danielle at August 21, 2008 9:43 AM

My god that car is ugly. They would have to pay me to drive it. Couldn't they find a paint scheme that was more tasteful?

Posted by: guy lafleur is not a yahooligan at August 21, 2008 10:09 AM

@Tim: When M6J 416 says it "may as well be a press release", I'll wager that this refers to the piece's largely uncritical (which is different from not being "negative enough") announcement-style overview of the business, including an interview the the founder but no one else beyond a chipper vox pop blurb from a random passerby.

The reader participation question at the end about ZipCar and AutoShare mitigates this somewhat, sure, but fleshing out the comparison in the post itself would have helped.

Posted by: Greg Smith at August 21, 2008 10:16 AM

At this point, you simply can't beat the convenience and intuitive structure of Zipcar. As Kevin stated above, Cityflitz can't really be considered as an auto sharing concept just yet.

Posted by: Suresh at August 21, 2008 10:21 AM

I was a member of a similar service in Spain where they had a fleet of ad-plastered Smart cars available for 9 euros per day. The advertisers were mostly small, local businesses (landscaping and real estate outfits mostly) who benefited from having their ads parked in high traffic residential areas.

Not sure I understand the rationale around the 30km minimum. Doesn't this really just promote driving for the sake of driving? Not sure that really helps the environment in any way, nor does it help to get people to click on Yahoo! ads. Would you even notice a Yahoo! car zipping by on the 401?

Posted by: Darlene at August 21, 2008 10:29 AM

@Greg - Fair enough. But I suspect Roger wasn't aiming to finish the conversation, but rather provide enough info to start it....which by the looks of it seems like he's done.

Posted by: Tim at August 21, 2008 10:37 AM

This is a great idea for those who live in teh city and don't really have vehicles and you can't really beat the price but I bet there are many people waiting to get on a list to rent one of these cars?

Posted by: Go Toronto Card at August 21, 2008 10:48 AM

"Not sure I understand the rationale around the 30km minimum."

@Darlene: Cityflitz's rentals are subsidized by the advertising that envelops their cars. The 30km minimum is presumably to ensure that that the advertiser's message is out and about for long enough for that subsidy to provide a minimum value (in terms of exposure) to the sponsor. Make no mistake, this is first and foremost an advertising platform, not an environmental initiative.

@Tim: Starting the conversation is good, but providing more grist for the mill (e.g. getting comments from other services into the main article, or suggesting a basis for comparison) would make it seem less like a perfunctory gesture or a shortcut to avoid rounding out the article by assembling a broader perspective on the subject. Without this, the post is vulnerable to complaints (like m6j 416's above) of cheerleading.

Posted by: Greg Smith at August 21, 2008 11:35 AM

This isn't new and not exactly a good offer! Forget about a $1 a day rental fees as there have been companies for YEARS that pay people to place ads on their own private cars, which is a much better deal if you ask me. I have an ad on my car that was attached by a company named BoldCar (www.boldcar.com) and they pay me a few hundred bucks a month to drive around with the ad. But that's not the only company out there.

Posted by: Bernard at August 21, 2008 12:02 PM

I think this idea is wrong for a dense city like Toronto. I think it would be better recieved and more effective in the suburbs.

The people I know who use zipcars or autoshare use it to buy groceries or to go to ikea. Not 30 kms of travel.

Relocate to Oshawa, Mississauga, Brampton, Guelph, Kitchener, and open it up to younger people with six months of G2 driving, then you'll have a real success.

Posted by: MattAlexander at August 21, 2008 1:44 PM

Presumably if you don't hit the 30km limit you don't get the $1 price. If you choose to drive around aimlessly to hit it, it is you who is being environmentally irresponsible, not the company.

Posted by: x_the_x at August 21, 2008 1:57 PM

Driving 30 kilometers in the city isn't that hard. A trip to Ikea on The Queensway in Etobicoke from Toronto Eaton Centre is 16 km, so you'd easily exceed 30 km in a day with one such return trip.

A similar distance and another likely scenario is a return trip from downtown to York University.

Posted by: Roger at August 21, 2008 2:03 PM

If you don't hit the 30 kilometer minimum requirement per day, you get a warning. The $1/day price still stands.

If you fail to meet the minimum requirements after three times, you aren't allowed to continue to use the service.

This makes sense. At least from an advertiser's point of view. People tend to rent cars when they need them. Not just for going to the grocery store and back. That's what taxis are for. :)

Posted by: Roger at August 21, 2008 2:08 PM

or maybe you can drive around in circle in loblaw's parking lot to hit the 3okm requirement

Posted by: jack at August 21, 2008 7:30 PM

@ stef - good idea. Judge a company by their drivers. As a bicyclist who drives, and has a realistic perspective, that was just dumb.

@m6j 416 - BlogTO is a blog. They can do whatever the fuck they want. Go comment at the Toronto Star.

To rent a car, CityFlitz members must be at least 23 years old and have a valid "G" driver's license as well as a credit card that includes rental car insurance coverage. Damn! Not even Craigslist has Cars for a Loonie.

Posted by: SCREWFACE at August 21, 2008 7:58 PM

I don't think it's a dumb idea. I am a driver as well.

If you are driving a vehicle with a brand name/company logo, you are representing that name. If you drive like an asshole on the road, you represent that company in a negative way.

Posted by: stef at August 21, 2008 8:59 PM

People tend to rent cars when they need them. Not just for going to the grocery store and back.

Umm. That's exactly what people rent Zipcar or Autoshare cars for.

And Wifi in the car = more idiots on the road not paying attention. Fabulous.

Posted by: Carrie at August 21, 2008 10:37 PM

@Tim > Publisher's note: Are you saying this because we wrote about CityFlitz? Or is it because Roger's review wasn't negative enough?

Tim, what I am saying is that the story was incomplete at best, if not misleading (to call cityflitz "Toronto's newest auto-sharing company", so clearly a cut & paste from their press release. In fact, yes, it is bordering on a shill.)

I have invested my life into building AutoShare over the last 10 years, and before that the Co-operative Auto Network in Vancouver, to establish an alternative to owning a car in our city (and, to create a living for myself and my team). I take exception to the use of "auto-sharing" to describe something that is not car sharing, not yet operational enough to answer critical questions - and quite frankly, ya didn't fricken call me to discuss this either, so no wonder you cut & paste from their press release (check out the other stories online).

You react to my note, yet fail to address my points.

I am not against more competition, or someone doing something new & innovative - I'm just saying that cityflitz is not providing a similar service to that of AutoShare, nor Zipcar. They are renting cars by the day, like Budget (but for very little money). And you are helping them to appropriate the term car sharing, which they are not.

Posted by: Kevin McLaughlin at August 22, 2008 3:32 AM

@Kevin: CityFlitz calls itself an auto-sharing company. If you've got a problem with that, take it up with them. It's car sharing or car renting, no matter how you slice it. Without getting into a debate over semantics, I think this city has room enough for all types of business plans, including your own.

I'm not merely reiterating what's on their press release. I hope to encourage discussion and provide a forum where our readers can judge for themselves how useful this new service is to them, what ever it's called.

Posted by: Roger at August 22, 2008 5:44 PM

Thank goodness there are fine companies like CityFritz to make sure advertising is *absolutely everywhere you look* or the economy would certainly collapse and we'd all be slaves in some Chinese-owned Export Zone.

(Yahoo is still around? Why?)

Posted by: rek at August 23, 2008 1:08 AM

If you've got a dollar to spend and don't want to spend it "in a snazzy, souped-up ad-mobile plastered with obnoxious slogans for a day," as The Toronto Star suggests, check out some other ways to spend a dollar.

Any better ideas?

Posted by: Roger at August 25, 2008 4:12 PM

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