Car-share rivals eye London as Zipcar exits the UK
A number of car-sharing players are weighing a London entry or expansion as Zipcar shuts down its UK operation, leaving a sizable gap in one of Europe’s busiest cities. The move comes after Zipcar announced it would close its UK services by year-end, a setback for car-sharing advocates and potentially affecting as many as half a million users.
Free2Move, the Stellantis-owned fleet operator, said it is closely watching the London market and actively evaluating options to offer its services there. The company already runs fleets in European capitals and major cities including Berlin, Paris, Rome, and Washington, DC.
Enterprise Car Club, which already operates a presence in London, stated that it will continue pursuing opportunities to broaden its network and provide people with hourly or daily transportation alternatives.
Co Wheels, which runs across the UK and maintains a small number of cars in London, noted it has been actively discussing options with several London boroughs in recent days.
Peer-to-peer platforms Hiyacar and Turo also expressed intentions to grow by inviting more car owners to list their vehicles in London.
London has long been viewed as a promising market for car sharing due to its large population and heavy reliance on public transport rather than private car ownership.
Yet experts highlight that the city’s licensing and parking framework presents a major hurdle. The capital’s 33 local authorities operate with fragmented rules, complicating car club operations. For example, Zipcar’s floating fleet, which lacks fixed parking spots, was prohibited from parking in central areas such as Camden and the City of London, among others.
Free2Move suggested its London interest is not yet fully developed, though it acknowledges the city as a potential target. Its model centers on floating vehicles accessible via an app.
The company described London as one of Europe’s most advanced cities in terms of readiness for autonomous mobility, making it a particularly attractive market for long-term planning. Free2Move emphasized a patient, long-term strategy focused on autonomous and fully digital mobility solutions, considering how its car-sharing and fleet-management expertise could evolve to support a city like London in the future.
Launching a new car-club fleet would require substantial vehicle investment and likely take time, particularly if Stellantis contemplates selling Free2Move, as reported by Bloomberg in October.
In contrast, peer-to-peer services present a lighter path: they connect car owners with renters without building large fleets. Hiyacar and Turo already operate in London and each sees opportunities to broaden listings.
Don Iro, CEO of Hiyacar, said the company intends to seize the market and believes it is well-positioned to scale. He noted that market expansion would proceed regardless of Zipcar’s exit, and Zipcar’s departure provides additional momentum for growth.
Richard Dilks, CEO of the shared-transport charity CoMoUK, explained that he has participated in discussions with London boroughs and Transport for London about streamlining processes and reducing fees to attract more players. He cautioned that a significant ‘cliff-edge’ gap is likely, with progress appearing tentative and a long road ahead.
