Free2Move, a new car-sharing subsidiary of auto giant Stellantis, is aiming to pour into the London market. This announcement follows Zipcar’s decision to end its operations in the UK. Zipcar’s departure has left a big hole in one of Europe’s largest cities. As a result, Free2Move and other car-sharing companies are currently looking for opportunities to launch or expand their services in London.
Currently, Free2Move runs fleets of these floating vehicles that users can easily find and reserve through the company’s app. The company is something of a case study in creating a competitive advantage within the rapidly-evolving car-sharing market. It serves in large metro areas including Berlin, Paris, Rome and Washington D.C. Free2Move is strongly observing the market conditions in London. They are in the process of evaluating their options for funded or offered services in the city.
Free2Move’s interest in London is impressive, it still is at a very nascent stage of thought. The company admits that any future expansion plans would face obstacles, particularly if Stellantis were to sell the business. It’s hard to find a place that might be more fertile ground for car-sharing services than London. This is because, despite its huge population, most of its residents don’t use private cars—they take transit.
“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,” stated a representative from Free2Move. This citywide sentiment speaks to the city’s readiness to serve as a canvas for innovative and progressive mobility solutions.
Zipcar’s recent withdrawal from the UK has left a big space in the car-sharing market. Insider’s experts paint a grim picture of what’s quickly become an impending “cliff-edge gap.” As Free2Move evaluates its strategies, it must consider the substantial investment needed to establish a new car club fleet in London.
“Almost certainly there’s going to be a big cliff-edge gap,” – an industry expert noted.
Switching from zero-we-can’t-launch-yet to a launching-a-fleet-in-London fleet will take more than a heartbeat. That may be a long process, since Free2Move will need to go through a variety of regulatory requirements and logistical challenges.
Moreover, local competitors such as Hiyacar are considering where they go next with Zipcar’s withdrawal. Hiyacar’s Chief Executive Don Iro expressed confidence in the market potential, saying, “Our vision is to now take on the market. We’re in a unique position to scale.”
Free2Move Inc. is preparing for the next phase of growth and expansion. That’s because the company is pursuing a long-term, strategic pivot to an autonomous, fully digital mobility ecosystem. “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,” the representative added.
With Zipcar’s exit, a number of other car-sharing services have seen increased opportunities. This change is setting the stage for a fantastic revolution in quiet urban mobility all over London. The city’s readiness for modern transportation solutions may attract further interest from various players looking to fill the void left by Zipcar.