London could see a significant expansion of car clubs across the capital as part of its strategy to improve air quality and meet electric vehicle targets.
The move comes as the cleaner vehicle discount for the Congestion Charge will end on December 25, potentially removing a key incentive for Londoners to switch to cleaner vehicles.
Car clubs, which allow members to rent vehicles by the minute, hour or day, have been shown to reduce private car ownership while providing access to low and zero-emission vehicles, according to new reports.
The proposal was raised during a London Assembly meeting with experts explaining how car clubs would be crucial in helping meet the capital’s broader air quality improvement plans.
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Car clubs operate as short-term car rental services with locally parked vehicles that members can access using a smartcard or smartphone.
According to CoMoUK research, each car club vehicle replaces 29 privately owned cars on London's streets. Members of car clubs also demonstrate more sustainable travel habits than the average Londoner, with 33 per cent cycling at least once a week compared to the London average of 18 per cent.
Additionally, 66 per cent of car club members used a train or tram while 60 per cent used a bus in the past week. Zipcar, a car club operator, reported that its electric vehicle fleet is the largest for any car sharing service in the UK.
CoMoUK research indicated that car clubs change transport behaviour, with members reducing their car miles driven by an average of 153 miles per year.
Richard Falconer, Co-Founder of Co Wheels Car Club, stated: "Car clubs do not compete with but complement both public transport and active travel. Car clubs break the link with private car ownership by showing the true cost of each journey, allowing users to make more informed decisions about their travel options."
Research suggested that car clubs could encourage a further 32 per cent of households – 647,812 current car-owning households – to give up their cars.
But car club operators have highlighted several challenges to expansion in London, particularly in outer boroughs. Co Wheels pointed to "outdated, inflexible procurement contracts" as the biggest barrier to entering the London market.
The current system varies across the 32 boroughs and the City of London, creating inconsistency in policies, attitudes, pricing and selection. Many councils use fixed-term contracts instead of simpler licensing systems, which lock in existing operators for three to six years while locking out potential new entrants.
Zipcar noted how operating costs have significantly increased since the pandemic, causing several operators to exit the market. There is also no overall London policy or support framework for car clubs.
In response, car club operators have proposed several policies to support growth across London. These include free parking permits for electric car club vehicles and reduced permit costs for non-electric vehicles.
Zipcar has called for extending the clean vehicle discount for electric car club vehicles until at least 2027. Other suggestions include considering car clubs as exceptions when introducing School Streets and Low Traffic Neighbourhoods.
Operators also recommend creating a central fund to support boroughs with car club expansion. A pan-London approach to car clubs, similar to frameworks for shared bikes and e-scooters, could make growth easier than having individual conversations with each borough.
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According to CoMoUK's survey, 28 per cent of users with lasting health conditions said they wouldn't have been able to make their journey without car clubs. The same percentage of users are in the lowest income band (under £10,000) and could not afford to make journeys without access to a car club.
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The move comes as the cleaner vehicle discount for the Congestion Charge will end on December 25, potentially removing a key incentive for Londoners to switch to cleaner vehicles.
Car clubs, which allow members to rent vehicles by the minute, hour or day, have been shown to reduce private car ownership while providing access to low and zero-emission vehicles, according to new reports.
The proposal was raised during a London Assembly meeting with experts explaining how car clubs would be crucial in helping meet the capital’s broader air quality improvement plans.
Do you have a story you'd like to share? Get in touch by emailing [email protected]
Car clubs operate as short-term car rental services with locally parked vehicles that members can access using a smartcard or smartphone.
According to CoMoUK research, each car club vehicle replaces 29 privately owned cars on London's streets. Members of car clubs also demonstrate more sustainable travel habits than the average Londoner, with 33 per cent cycling at least once a week compared to the London average of 18 per cent.
Additionally, 66 per cent of car club members used a train or tram while 60 per cent used a bus in the past week. Zipcar, a car club operator, reported that its electric vehicle fleet is the largest for any car sharing service in the UK.
CoMoUK research indicated that car clubs change transport behaviour, with members reducing their car miles driven by an average of 153 miles per year.
Richard Falconer, Co-Founder of Co Wheels Car Club, stated: "Car clubs do not compete with but complement both public transport and active travel. Car clubs break the link with private car ownership by showing the true cost of each journey, allowing users to make more informed decisions about their travel options."
Research suggested that car clubs could encourage a further 32 per cent of households – 647,812 current car-owning households – to give up their cars.
But car club operators have highlighted several challenges to expansion in London, particularly in outer boroughs. Co Wheels pointed to "outdated, inflexible procurement contracts" as the biggest barrier to entering the London market.
The current system varies across the 32 boroughs and the City of London, creating inconsistency in policies, attitudes, pricing and selection. Many councils use fixed-term contracts instead of simpler licensing systems, which lock in existing operators for three to six years while locking out potential new entrants.
Zipcar noted how operating costs have significantly increased since the pandemic, causing several operators to exit the market. There is also no overall London policy or support framework for car clubs.
In response, car club operators have proposed several policies to support growth across London. These include free parking permits for electric car club vehicles and reduced permit costs for non-electric vehicles.
Zipcar has called for extending the clean vehicle discount for electric car club vehicles until at least 2027. Other suggestions include considering car clubs as exceptions when introducing School Streets and Low Traffic Neighbourhoods.
Operators also recommend creating a central fund to support boroughs with car club expansion. A pan-London approach to car clubs, similar to frameworks for shared bikes and e-scooters, could make growth easier than having individual conversations with each borough.
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According to CoMoUK's survey, 28 per cent of users with lasting health conditions said they wouldn't have been able to make their journey without car clubs. The same percentage of users are in the lowest income band (under £10,000) and could not afford to make journeys without access to a car club.
Find Out More...