Metro Transit may take over carshare after HOURCAR shutdown

Minnesota Rep. Katie Jones is preparing a bill for the 2027 legislative session that would authorize Metro Transit to run a carshare program. The legislation aims to replace the service provided by HOURCAR, a non-profit that ceased operations in the Twin Cities on Oct. 8. Jones argues that the transit agency has a financial incentive to maintain carshare access. She stated that if former members buy private vehicles, they may stop using public transportation. Jones also expressed concern that thousands of new cars would increase environmental costs and individual financial burdens.

HOURCAR ended its 21-year run in the region due to a $625,000 funding gap. The organization attributed the deficit to rising insurance costs and the loss of state and federal grants. More than 4,000 active members in the Twin Cities lost access to the service. The non-profit had raised prices in 2025 and received supplemental funding from Minneapolis and St. Paul, but the financial strain proved too high to sustain.

In its Oct. 8 announcement, the organization said, "Until recently, we believed we could solve the funding challenge without disrupting service." The sudden closure left many users without a reliable transportation option. Advocates for the new program are working to ensure a transition before the bill passes.

Noah Velick, a former HOURCAR employee and member of Neighbors for Community Carshare, said the group is collaborating with Jones. Velick noted that the group is seeking funding from local city and county leaders to continue operating a program using HOURCAR's existing fleet. The organization is currently working to finalize the details of this interim arrangement.

Susan Van Pelt, a 63-year-old Minneapolis resident, used HOURCAR for nearly 20 years. She lives on a fixed Social Security and disability income and does not own a car. Van Pelt relies on public transportation for daily needs but said she will likely use ride-hailing services like Uber and Lyft for longer trips and large grocery runs. She stated, "If you don't need to own a car and pollute and use fossil fuels, don't do it."

Velick said some former users are considering buying cars even if they cannot easily afford them. He explained, "They can't get to their medical appointments, or they can't go grocery shopping easily without a car." Velick added that people are making sacrifices in other areas of their lives to purchase vehicles.

Olu Famile has used HOURCAR since moving to the Twin Cities in 2022. He attended a rally on Oct. 13 where more than 100 community members advocated for the continuation of the program. Famile said he has been staying home more often to avoid complicated transportation logistics.