Exclusive: The letter, which comes ahead of an extraordinary meeting to be held in City Hall tomorrow, details four main policy suggestions for the Mayor and Transport for London (TfL)Kumail Jaffer Democracy Reporter covering the Mayor of London and the Greater London Authority
13:53, 15 Dec 2025Updated 14:10, 15 Dec 2025
Car club operators say their costs could increase by hundreds of thousands per year(Image: CoMoUK/Zipcar)
The Mayor of London has been urged to stage a dramatic intervention to safeguard the future of car clubs in the capital after Zipcar’s imminent departure.
Dozens of signatories, including London Assembly Members, environmental campaign groups such as Clean Cities, academics and other car club operators have written to Sir Sadiq Khan today (Monday, December 15) to demand urgent action to ensure shared transport businesses can remain viable in London.
In the letter, seen by the Local Democracy Reporting Service (LDRS), the Mayor was told that Zipcar’s decision to cease their UK operations at the end of this year was a “significant setback” for his climate and transport goals and raised “urgent questions about how policy conditions in our city are harmful to car sharing services”.
The signatories added: “At a time when London is working hard to reduce emissions, improve air quality and expand sustainable travel options, the loss of a major electric car club operator is deeply concerning.
The Mayor of London was told that he needs to make urgent reforms to save car clubs in the capital
“Without decisive action to ensure the viability of car clubs, London risks falling even further behind other global cities that are leveraging shared, electric mobility as a cornerstone of their climate and transport strategies.
“The withdrawal of London’s main car club operator should be a wake-up call, but it is also an opportunity to redefine and strengthen the conditions needed for car clubs to grow, compete and serve communities across the capital and deliver the associated modal shift and environmental benefits.”
Zipcar announced they will end their UK operations at the end of 2025(Image: Getty Images)
The letter, which comes ahead of an extraordinary meeting to be held in City Hall tomorrow, details four main policy suggestions for the Mayor and Transport for London (TfL), including the drawing up of an urgent plan to “fill the gap” left by ZipCar and coordination of efforts across London boroughs to support the existence of car clubs.
It also recommended reducing parking costs for car clubs and radically increasing the provision of electric vehicle (EV) charging infrastructure in the capital to reduce the burden on operators.
The letter was also addressed to Lewisham Mayor Brenda Dacres, who sits as an executive member for transport and environment on the London Councils organisation. Earlier today, she said Zipcar’s departure was “an issue of considerable concern for boroughs”.
Richard Dilks, of CoMoUK, was one of the signatories of the letter to the Mayor(Image: CoMoUK)What are car clubs?
Car clubs are services where members can access vehicles for a fixed period, with consumers usually able to pay by the minute, hour or day. They are either parked at hubs with other shared transport vehicles or left in dedicated parking bays and areas on the streets.
Seen as an alternative model to private car ownership, they are a crucial part of the Mayor’s transport strategy to decongest London’s roads.
The timing of Zipcar’s decision to suspend operations was not a surprise to many amid Congestion Charge reforms, which will see a 20 per cent price increase to £18 and the end of the electric vehicle (EV) exemption from the levy.
While Zipcar did not lay out the specific reasons for ceasing their UK operations, the firm has previously warned of the impact that the Congestion Charge changes would have.
James Taylor, General Manager at Zipcar UK, told MPs as early as September about the impact that Congestion Charge reforms could have on car clubs(Image: House of Commons)
James Taylor, the General Manager at Zipcar UK, told MPs in September that the removal of the 100% EV discount could make car clubs “commercially unviable” in the capital.
Tomorrow Seb Dance, the Deputy Mayor for Transport, and Christina Calderato, Director of Transport Strategy and Policy at TfL, will appear in front of the London Assembly Transport Committee to face questions over the demise of Zipcar.
Stay updated on the latest travel news for London’s roads with our London Traffic and Travel newsletter. Sign up HERE