The car-sharing market in London could soon become a lot more competitive, with other competitors eyeing up expansion plans to join the field. This development follows Zipcar’s recent announcement that it will close its UK operations at the end of the year, impacting nearly half a million users. London is truly one of Europe’s most exciting cities for car sharing. We know that many innovative companies are ready to jump at this opportunity.
London has a consistently high population that uses public transport as a first choice rather than personal vehicle predominance. Against this backdrop, an extraordinary opportunity has been opened up for car-sharing services to thrive. The licensing system and parking fees are all different across each of London’s 33 local authority licensing areas. This fragmentation has historically made it difficult for car clubs to scale.
Co Wheels, which operates across the UK and maintains a limited presence in London, is currently exploring options for expanding its services. The company is “in active discussions” with potential borough-specific arrangements across a number of boroughs in the capital. Meanwhile, Free2Move, a service known for its fleets of floating vehicles accessible via an app, is considering entering the London market. Free2Move already has a footprint in those key cities, including Berlin, Paris, Rome and the Washington D.C. metro area.
“London is among Europe’s most advanced cities when it comes to readiness for autonomous mobility, which makes it a particularly compelling market for us.” – Free2Move
Stellantis, Free2Move’s parent company, is apparently already looking to sell the service. Bloomberg first announced this back in October. Regardless, Free2Move is very optimistic about its prospects in London. A representative stated, “Free2move is taking a long-term view, focused on autonomous and fully digital mobility solutions, and we are actively assessing how our experience in car sharing and fleet operations could evolve to support a city like London in the future.”
Richard Dilks, chief executive of CoMoUK, has engaged in discussions with multiple London boroughs and Transport for London regarding the expansion of car-sharing services. He said that creating a standardized process in each borough and some sort of fee reduction would draw more operators into the market.
Along with Co Wheels and Free2Move, Enterprise Car Club is looking to increase its footprint in London. A spokesperson for the company mentioned that they “will continue to seek out opportunities to expand our network and provide people with alternative transport options by the hour or day.”
Today’s companies are in a wait-and-see period as they determine how to proceed after Zipcar’s departure. It will be fascinating to watch how the car-sharing landscape in London develops from here. This means huge potential for smart growth. Yet, newcomers face daunting regulatory challenges to get a foothold in this dynamic industry.