Zipcar's rivals consider London expansion after it reveals UK exit

"Several car-sharing companies are considering launching or expanding in London, with the imminent closure of Zipcar's UK operation leaving a large gap in the market in one of Europe's biggest cities. Free2Move, owned by the carmaker Stellantis, said it was closely monitoring the London market, and actively assessing options for its services. It already operates fleets in cities including Berlin, Paris, Rome and Washington DC."

"However, experts have said that the fragmented nature of licensing and parking prices across 33 London local authorities has been a huge barrier to car clubs. For instance, Zipcar's floating cars, which have no fixed parking spot, were not allowed to park within the central borough of Camden and the City of London, among other areas. Free2Move suggested that its interest was not at a developed stage, but that it might consider the city."

"Enterprise Car Club, which already has some cars in London, said it will continue to seek out opportunities to expand our network and provide people with alternative transport options by the hour or day. What has gone wrong at Zipcar and is UK car-sharing market dead? Co Wheels, which operates across the UK and with a handful of cars in the capital, said it was actively discussing options with several London boroughs in recent days."

Zipcar's planned UK closure will leave a significant car-sharing gap in London and affect up to half a million users. Free2Move, owned by Stellantis, is monitoring London and assessing options, citing its existing fleets in Berlin, Paris, Rome and Washington DC. Enterprise Car Club plans to seek expansion opportunities to offer hourly and daily alternatives. Co Wheels is discussing options with several London boroughs, while peer-to-peer platforms Hiyacar and Turo aim to grow owner participation. Fragmented licensing and varied parking prices across 33 local authorities, and restrictions on floating cars in boroughs such as Camden and the City, hinder club growth.

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