Sadiq Khan faces backlash for failing to roll out major car benefit which could save drivers £3,000 on travel

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GB NEWS
Hemma Visavadia

By Hemma Visavadia


Published: 03/05/2025

- 15:41

Car clubs could help drivers save money on travel across London

Sadiq Khan has been criticised for overlooking a key car benefit which could help millions of drivers save money and reduce their dependency on private vehicles.

A London Assembly report has found that Transport for London (TfL) is "putting the handbrake" on car clubs, despite evidence showing they can save users around £3,000 per year compared to private car ownership.


The Transport Committee investigation revealed TfL's "patchwork approach" is preventing car clubs from reaching their full potential across the capital.

Chair Elly Baker AM said TfL's approach is "overlooking these benefits, and not providing the support that the industry needs to grow."

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Zipcar in London

Car clubs allow Londoners to make necessary journeys without owning a vehicle

GETTY

Car clubs allow Londoners to make necessary journeys without owning a vehicle, but the London Assembly report found that TfL policies have left councils to create their own strategies.

This has led to inconsistent provision across the capital, causing some operators to withdraw from London, the report warned.

The report also revealed that car clubs can replace up to 32 private cars when factoring in deferred purchases, and vehicles are often newer with lower emissions.

But despite these benefits, the number of active car club members in London has fallen by 22 per cent between 2021 and 2023, with 70,000 fewer members and 600 fewer vehicles.

Car clubs are short-term car rental membership services that allow users to access locally parked cars, which can be paid for by the minute, hour or day.

Four car club operators currently run services in London, including Zipcar, Co-Wheels, Enterprise and Hiyacar. CoMoUK has estimated that in London, one car club car replaced around 15 private cars in real terms.

Car club vehicles are also often newer with lower emissions than private cars, helping to reduce carbon emissions and air pollution.

Co-Wheels told the London Assembly that 35 per cent of car club vehicles are electric vehicles compared to four per cent of total cars in the UK.

Elly Baker AM, Chair of the London Assembly Transport Committee, said: "The benefits of car clubs are obvious allowing Londoners to use a car when needed, without the ongoing costs of owning a private vehicle, and delivering a positive impact on street space and congestion.

"Yet TfL's approach is overlooking these benefits, and not providing the support that the industry needs to grow."

The report found TfL's position on car clubs may have shifted, with officials expressing concern about introducing significant numbers of additional car club vehicles.

This stance appears to contradict the Mayor's own statements that "TfL wants to see car clubs thrive" and that they are "an important part of the transport mix".

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Zipcar card

The only car club providers in London are Zipcar, Co-Wheels, Enterprise and Hiyaca

GETTY

The report recommended that in the next London Plan, the Mayor should recognise the important role car clubs can play in London's transport mix.

Richard Dilks, Chief Executive at CoMoUK, told the committee that the current provision of car clubs in London is "not at the level it could be".

He added that London is a "difficult market to operate in" and "has seen a reduction in the number of operators it has".