Daimler is pulling its car-sharing car2go service out of China at the end of this month due to disappointing take-up.

The car2go service allows users in major cities to drive shared Smart-branded cars paid for on an hourly rate.

In a statement, Daimler said that the decision was taken because of 'changes in China's market environment and in user needs'.

Daimler introduced the car2go program in the city of Chongqing in Southwest China in early 2016, and later expanded locations to include cities such as Shenzhen and Chengdu.

Reports in China suggest that high operating costs of vehicles, expensive rates and the limited number of cars available are possible reasons for the scheme's China demise.

Daimler offered two-seater Smart cars in a car-share market that offered more choices of cars at cheaper prices, some analysts suggest.