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,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”,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.
The peer-to-peer car-sharing companies Hiyacar and Turo also said they hoped to expand the number of car owners using their platforms in London.Zipcar last week announced a plan to close its UK operation at the end of the year, in a blow to advocates of car sharing and to as many as half a million users.London is seen as one of the most promising cities in Europe for car sharing because it has a big population that largely relies on public transport rather than owning their own cars to get around.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.Free2Move operates fleets of floating vehicles, which are accessed via its app.It said: “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.“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.”Launching a new car club fleet would entail significant investment in vehicles, and would probably take some time for Free2Move or a competitor.
Any plans for Free2Move to launch in London could be complicated if Stellantis, the owner of car brands including Peugeot, Vauxhall and Fiat, decides to sell the business, as reported by Bloomberg in October.Peer-to-peer companies have a less financially onerous task, as they link existing owners of vehicles to potential renters, without having to spend heavily on fleets of cars.Hiyacar and Turo already operate in London, and both said they spied an opportunity to expand and persuade more owners to list their cars.The Hiyacar chief executive, Don Iro, said: “Our vision is to now take on the market.We’re in a unique position to scale.
”He added that the company was “always going to do this irrespective of Zipcar”, but its abandonment of the market “gives us the ammunition to expand”.Richard Dilks, the chief executive of CoMoUK, a shared transport charity, said he had been involved in several discussions with London boroughs and Transport for London over what needed to happen to attract more players, including having a single process across boroughs and lower fees.“Almost certainly there’s going to be a big cliff-edge gap,” he said.“I can see some signs of progress, but hypothetical at the moment.It’s going to be a long haul, this.
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