Environmental organizations are urging the mayor of London to take action to protect the future of car clubs in the city.
Sir Sadiq Khan has been informed that “urgent concerns” have emerged regarding the detrimental effect of current policies on car-sharing services. This comes after the car-sharing company Zipcar announced its cessation of operations in London effective December 31.
The letter arrives as City Hall prepares for a special meeting to deliberate on four policy proposals for the mayor and Transport for London (TfL), which include an immediate strategy to address the gap left by Zipcar’s departure.
A representative for the mayor indicated that he is committed to ensuring that car clubs continue to be a viable option for residents in London.
The letter expressed that the withdrawal of a key operator in the electric vehicle car club sector is “extremely troubling” and warned that “London risks falling further behind other leading global cities that are integrating shared electric mobility into their climate and transportation strategies.”
The signatories have called on Sir Sadiq Khan to take prompt measures to guarantee the sustainability of shared transportation businesses in London.
While Zipcar did not specify the exact reasons for halting its operations in the UK, the company had previously cited the implications of changes to the congestion charge, which involves a 20% increase to £18 and the removal of the exemption for electric vehicles.
James Taylor, General Manager of Zipcar UK, informed MPs in September that the elimination of the full EV discount could render car clubs “commercially unviable” in the capital.
What are car clubs?
Car clubs are services that allow members to rent vehicles for predetermined time periods, with users typically charged by the minute, hour, or day. Vehicles are either stationed at hubs alongside other shared transport options or parked in designated bays on the streets.
Recognized as an alternative to personal car ownership, these clubs are pivotal to the mayor’s transportation strategy aimed at reducing traffic congestion in London.
Zak Bond, campaign manager for Clean Cities London, asserted in the Financial Times that Zipcar’s “sudden exit from the UK is a significant obstacle to the implementation of the mayor’s transportation framework and the broader decarbonization objectives for London.”
He emphasized, “This also prompts pressing queries about why the policy landscape in the capital has turned so unfriendly towards car-sharing services, which diminish private car usage, lower emissions, and promote more efficient road space utilization.
“It is crucial that the mayor of London and the boroughs collaborate swiftly to create a more favorable climate for car-sharing, including more equitable and affordable parking solutions for this socially and environmentally beneficial mode of transport.
“If they do not act, the void created by Zipcar could force many individuals back into personal car ownership, jeopardizing the city’s climate ambitions.”
Brenda Dacres, chair of London councils’ transport and environment committee, characterized car clubs as “a vital component of London’s transportation system,” which also contributes to reducing carbon emissions.
She remarked, “The recent news of Zipcar’s intent to exit the UK poses a serious concern for boroughs and for residents who depend on their services.
“London boroughs have maintained a constructive partnership with Zipcar for over two decades, facilitating thousands of parking spaces and EV charging locations through locally negotiated agreements.”
The mayor’s representative further noted: “TfL and the mayor’s office are convening with stakeholders, including boroughs and car club operators, in the coming days to explore these issues and seek collaborative opportunities with councils to tackle the immediate challenges facing London’s car club market, alongside long-term strategies to support the sector’s future.”
