Answering Questions About HOURCAR's Sunset: A Message from our Board of Directors

In the days since we announced HOURCAR’s planned sunset, we have heard from members, partners, employees, and supporters who are grieving, frustrated, and looking for answers. We understand those feelings. Many people, including members of our staff, relied on this service, invested their time and energy into it, and believed in its mission. 

One question has come up repeatedly: how did we get here and why so abruptly? It is a fair question, and one we believe deserves a thoughtful and transparent answer. We want to share more about the path to this point, why the announcement came when it did, and what possibilities may still exist ahead. 

The Funding Gap 

HOURCAR did not go from financially stable to insolvent overnight. The challenges developed over time, and throughout that period, we worked alongside organization leadership and staff to pursue multiple paths to close widening financial gaps. 

A combination of factors contributed to HOURCAR’s current situation, beginning in 2025. Sharp and unexpected increases in insurance rates alongside rising operating expenses (such as for vehicle repairs) put substantial pressure on our budget. These cost pressures were not unique to HOURCAR—the same higher vehicle and insurance costs that make HOURCAR a valuable alternative for members also increased our cost of doing business. 

At the same time, several awarded federal grants included in our budget planning were abruptly cancelled outright, significantly reduced, and/or delayed. One of these grants was dedicated to developing and building support for a new funding model that would have sustainably responded to the new, higher costs. The direct effect of losing federal funding was substantial. The indirect effect may have been worse; our partners in local governments also lost federal funding, so they also were limited in their ability to fill the federal hole.  

Throughout this period, HOURCAR took numerous actions in response: we increased prices, we eliminated staff positions, and additional rounds of cost reductions followed. We engaged local government officials, philanthropic partners, and community stakeholders to explore funding solutions. Contributions from supporters, including organizations such as the McKnight Foundation, Xcel Energy, and the 3M Foundation, helped extend operations while broader solutions were pursued. 

In early June 2026, we convened local and regional leaders, including representatives from cities, county governments, transit agencies, elected officials, and other partners.  

• We reviewed the goals that we all share. These goals include enabling people to make critical trips to the doctor and to work, making life more affordable, and reducing local pollution, among others.  

• We shared how carshare works in tandem with our ever-improving transit system to make it possible for many households to sell or postpone buying a car. In 2025 alone, HOURCAR helped residents of the region save over $23 million in transportation costs. Carshare increases transit usefulness and ridership, and it also lets people get to more places while spending less. Win-win-win.  

• The goal for the June 2026 meeting was straightforward: determine how to close a $1.1 million funding gap to preserve an essential mobility service that substantial benefits the region’s residents, while simultaneously creating a path toward long-term sustainability. 

At that time, staff were kept informed about the evolving financial picture. Updates were shared on multiple occasions, including communications that outlined the seriousness of the challenges and HOURCAR’s attempts at external funding support.  

Some have asked why we did not simply raise prices further, shrink the service area, or make other operational adjustments. Those options were evaluated repeatedly. Raising prices has historically reduced usage, which then has often resulted in lower overall revenue rather than improved financial performance. Shrinking the Home Area and/or reducing service in other ways would have conflicted with equity commitments central to HOURCAR's mission and, in some cases, obligations associated with public grants and partnerships. Other restructuring scenarios were also reviewed, but each presented significant limitations and ultimately failed to close the funding gap. 

At the time of the sunset announcement, HOURCAR faced an immediate funding shortfall of approximately $625,000, with no committed funding source identified to address it. 

The Short Notice 

Many community members have understandably asked why the public announcement came with so little notice. The honest answer is that, until very late in the process, we believed there remained a possibility that funding discussions could produce a different outcome. We met with staff and leaders from multiple government agencies, we met with leaders from numerous foundations, and we applied for countless grants. We asked you, our members, to reach out to your elected officials, share your stories, and ask for support. 

As funding discussions with government stakeholders continued without resolution, we retained legal counsel to help us evaluate options, understand our fiduciary obligations, and determine how to responsibly communicate the situation publicly.  

Based on the organization's financial position, legal counsel advised that continuing operations beyond a very limited timeframe could jeopardize our ability to fulfill our responsibilities and preserve the resources required for an orderly dissolution and winddown process.  

Throughout this entire period, conversations with potential funders and government partners remained active, and there was a genuine belief that the requested funding might be approved. Once we learned last week that two significant funding proposals would not be funded, it became clear that we no longer had a viable path forward. 

The Possible Road Ahead 

Although HOURCAR’s Board of Directors has voted to sunset HOURCAR, many people have asked whether this outcome is truly final. The answer is that the future ultimately depends on whether a realistic and collaborative path forward can be established. Any path forward would need to address not only HOURCAR's immediate funding gap of approximately $625,000, but also the longer-term sustainability challenges that led us here. 

Emergency funding alone would not solve the underlying issues. A viable future would likely require commitments from multiple stakeholders as well as a shared understanding of the role carsharing plays within the region's transportation ecosystem. 

Founded in 2005, HOURCAR grew through community support and public partnerships that recognized carsharing as an essential, cost-effective service that supports local goals for mobility, equity, and economic opportunity. 

Carsharing complements transit systems by bridging coverage gaps for trips that ride-hailing services or public transit cannot practically serve. Member feedback and our extensive collection of use data consistently demonstrates how the service saves families money, provides access to healthcare, and keeps essential travel affordable without requiring vehicle ownership. 

Public officials recognize this critical role and continue to work with us to navigate current financial challenges and find viable solutions.  

HOURCAR exists because thousands of members, supporters, employees, partners, and advocates believe that transportation should be more affordable, equitable, and sustainable. Whatever happens next, that belief remains as important today as it was when this organization began. 

We are profoundly grateful to everyone who has been part of this journey and for the care, concern, and commitment the community continues to show during this difficult moment. 

~ HOURCAR Board of Directors