Zipcar’s rivals consider London expansion after it reveals UK exit | Automotive industry
The imminent closure of Zipcar’s UK operation will leave a huge gap in the market in one of Europe’s biggest cities. Many car sharing companies are considering launching or expanding in London.
Free2Move, owned by carmaker Stellantis, said it was “monitoring the London market closely” and “actively considering” options for its services. They currently have fleets in cities such as Berlin, Paris, Rome and Washington DC.
Enterprise Car Club, which already has some vehicles in London, said it would “continue to look for opportunities to expand our network and offer people alternative transport options on an hourly or daily basis”.
Co Wheels, which operates across the UK with a small number of cars in the capital, said it was “actively discussing” options with various London boroughs in recent days.
Peer-to-peer car sharing companies Hiyacar and Turo also said they hoped to increase the number of car owners using their platforms in London.
Zipcar last week announced plans to close its UK operation at the end of the year, in a blow to carpooling advocates and up to half a million users.
London is seen as one of the most promising cities in Europe for car sharing because it has a large population that relies heavily on public transport rather than owning their own cars.
But experts said the fragmented nature of license and parking prices across London’s 33 local authorities was a major hurdle for motoring clubs. For example, Zipcar’s floating cars, which do not have fixed parking, were not allowed to park in the central borough of Camden and the City of London, among other areas.
Free2Move suggested that its interest was not at an advanced stage but that it could consider the city. Free2Move operates fleets of floating vehicles accessed through its app.
He said: “London is among the most advanced cities in Europe in terms of readiness for autonomous mobility, making it a particularly attractive market for us.
“Free2move takes a long-term view, focusing on autonomous and fully digital mobility solutions, and we are actively considering how our experience in car sharing and fleet operations can evolve to support a city like London in the future.”
Launching a new car club fleet will require significant investment in vehicles and will likely take some time for Free2Move or a competitor. Any plans to launch Free2Move in London could be complicated if Stellantis, which owns car brands including Peugeot, Vauxhall and Fiat, decides to sell the business. Bloomberg In October.
Peer-to-peer companies have a less financially burdensome task as they connect existing vehicle owners to potential renters without having to spend as much on vehicle fleets. Hiyacar and Turo already operate in London and both said they were eyeing the opportunity to expand and persuade more owners to list their cars.
Don Iro, CEO of Hiyacar, said: “Our vision is now to capture the market. We are uniquely positioned to scale.”
He added that the company “will always do this, regardless of Zipcar,” but leaving the market “gives us ammunition to expand.”
Richard Dilks, chief executive of CoMoUK, a joint transport charity, said he had held several discussions with London boroughs and Transport for London about what should be done to attract more players, including implementing a single process between boroughs and reducing fares.
“There will almost certainly be a big gap at the edge of the cliff,” he said. “I can see some signs of progress, but right now it’s hypothetical. This will be a long process.”
