London is exploring the expansion of car clubs to improve air quality and meet electric vehicle (EV) targets, especially with the upcoming end of the cleaner vehicle discount for the Congestion Charge on December 25. The move comes as a key incentive for Londoners to switch to cleaner vehicles is set to expire.
Car clubs, which offer vehicles for rent by the minute, hour, or day, have been shown to cut down on the number of privately owned cars while offering access to low and zero-emission vehicles, according to recent reports.
During a London Assembly meeting, experts discussed how car clubs could play a vital role in the capital’s broader air quality improvement plans.
Car clubs operate as short-term car rental services, with members accessing vehicles through smartcards or smartphones. CoMoUK research indicates each car club vehicle replaces 29 privately owned cars on London’s streets. Car club members also demonstrate more sustainable travel habits than the average Londoner, with 33 percent cycling at least once a week, compared to the London average of 18 percent. Furthermore, 66 percent of car club members used a train or tram, and 60 percent used a bus in the previous week.
Zipcar, a car club operator, stated that its electric vehicle fleet is the largest for any car-sharing service in the UK. CoMoUK also noted that car clubs can change transport behavior, 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 suggests that car clubs could encourage a further 32 percent of households – roughly 647,812 current car-owning households – to give up their cars.
However, car club operators have pointed out several challenges to expanding in London, especially in outer boroughs. Co Wheels cited “outdated, inflexible procurement contracts” as the biggest barrier to entering the London market. The existing system varies across the 32 boroughs and the City of London, causing inconsistencies in policies, attitudes, pricing, and vehicle selection.
Many councils use fixed-term contracts rather than simpler licensing systems, which lock in existing operators for three to six years and create barriers for potential new entrants.
Zipcar noted that operating costs have risen significantly since the pandemic, leading some operators to exit the market. Also, there is no comprehensive London policy or support framework for car clubs.
In response, car club operators have proposed several policies to promote 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 proposals include considering car clubs as exceptions when introducing School Streets and Low Traffic Neighbourhoods.
Operators have also recommended 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 facilitate growth.
CoMoUK’s survey indicated that 28 percent of users with long-term health conditions stated they would not 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.
