London Mayor Sadiq Khan is facing mounting pressure to launch an immediate intervention to secure the future of car-sharing services in the capital, following the imminent departure of major operator Zipcar.
Urgent letter demands action
In a letter sent to the Mayor on Monday, December 15, a coalition of signatories has demanded decisive steps to ensure the viability of shared transport businesses. The group includes London Assembly Members, environmental campaigners from Clean Cities, academics, and other car club operators.
The correspondence, obtained by the Local Democracy Reporting Service (LDRS), warns that Zipcar's decision to cease all UK operations at the end of 2025 represents a "significant setback" for the Mayor's own climate and transport objectives. It raises urgent questions about London's policy landscape being harmful to car-sharing models.
Four-point plan to fill the void
The letter outlines four primary policy suggestions for Mr Khan and Transport for London (TfL). These proposals come ahead of an extraordinary meeting scheduled at City Hall.
The key recommendations are:
- Creating an urgent strategy to "fill the gap" left by Zipcar's exit.
- Improving coordination between London's boroughs to uniformly support car clubs.
- Reducing parking costs specifically for car club vehicles.
- Radically expanding the provision of electric vehicle (EV) charging infrastructure across the capital to alleviate operator burdens.
The signatories argue that without such action, London risks falling behind other global cities that are successfully using shared, electric mobility as a core part of their climate strategies.
Congestion Charge changes a likely factor
While Zipcar has not publicly detailed every reason for its withdrawal, the timing coincides with major reforms to London's Congestion Charge. These changes include a 20% price increase to £18 and, critically, the removal of the 100% discount for electric vehicles.
James Taylor, General Manager of Zipcar UK, told MPs in September that removing the EV discount could render car club operations in London "commercially unviable".
Car clubs allow members to access vehicles by the minute, hour, or day from dedicated street bays or hubs. They are seen as a vital alternative to private car ownership and a component of the Mayor's strategy to reduce congestion.
The crisis will be scrutinised at a London Assembly Transport Committee meeting, where Deputy Mayor for Transport Seb Dance and TfL's Director of Transport Strategy, Christina Calderato, will face questions.
The coalition's letter concludes that Zipcar's withdrawal should serve as a "wake-up call" and an opportunity to strengthen the conditions for car clubs to grow and deliver environmental benefits for all Londoners.
