A London council has offered free parking permits to Zipcar in an 11th-hour bid to keep the car-sharing firm in the capital.
Zipcar caused widespread dismay when it announced on December 1 that it planned to cease trading in the UK and stop taking bookings for dates beyond December 31.
The firm has operated in London for more than 15 years and accounts for about 90 per cent of the capital’s car-share market.
Southwark council has offered to waive, until April 2027, the £350,000 annual cost of permits for the 138 “fixed” bays currently allocated to Zipcar vehicles across the borough, as well as the fees for 60 vehicles that “float” between different parking bays.
It wants the firm, which was acquired by Avis in 2013, to pause its plans to leave the capital – and for other boroughs to make similar offers.
Southwark is one of a number of London boroughs trying to boost walking, cycling and public transport usage and discourage private car trips.
Car clubs are seen as a key alternative to private car ownership. In Southwark, 60 per cent of households do not have access to a car.
James McAsh, Southwark’s cabinet member for clean air, streets and waste, said: “Zipcar’s recent announcement that it is ceasing operations in the UK is a disaster for our residents, for our ‘Streets for People’ programme and for the climate.
“That is why I’m making a bold offer – Southwark will provide a concession to Zipcar giving free parking permits for all their cars until April 2027 if they continue to operate in our borough, so that the thousands of Southwark residents and businesses who rely on Zipcar can continue to do so.”
Zipcar operated in at least 27 London boroughs. Councils had allocated about 1,700 parking spaces to Zipcar cars and vans.
E-bike firm Forest has suggested that parking bays left empty by Zipcar be repurposed as e-bike parking bays.
Mr McAsh said that if Zipcar did quit London then Southwark would write to other car club operators to offer them the same concession of free parking permits if they launch in the borough.
“This is a clear sign of our commitment to making Southwark the most attractive place in London for car clubs to operate in, as we work to deliver our ambitious Streets for People programme, and reduce reliance on private vehicle ownership,” he said.
“I’m also calling on the Mayor of London, Transport for London, and other councils across London to join us in taking immediate steps to support providers, and to look at how we can create an environment across the capital in which car club providers can thrive, which is key to reducing levels of private car ownership and to create better streets for everyone.”
The intervention came as a row raged at City Hall between the Labour chair of the London Assembly and mayor Sir Sadiq Khan.
Elly Baker, in a letter to Sir Sadiq and TfL commissioner Andy Lord, claimed Zipcar’s immiment departure could have been avoided if TfL had done more to encourage car clubs.
This continued a heated row that began at Mayor’s Question Time between Sir Sadiq and Ms Baker, and was a rare example of the Labour mayor clashing in public with a Labour assembly member.
She accused TfL of “acting as a blocker” to progress in developing car clubs
The assembly transport committee believes TfL should have taken action earlier this year to set a clear policy for car clubs in London and brought key figures in the sector together to resolve issues.
The letter calls for the parking bays used by Zipcar to be protected for other car clubs, and for TfL to consider incentivising car clubs.
The decision to impose a £13.50-a-day congestion charge levy on electric vehicles from January 2 – removing the 100 per cent exemption for electric cars – is thought to have been a factor in Zipcar’s decision to cease trading.
However 100 per cent C-charge discounts were retained for car clubs where the vehicles were returned to the same parking space.
Ms Baker said: “Much to the frustration of the London Assembly transport committee, there is no sense of urgency from TfL on this issue. There is currently a patchwork approach to car clubs in London and they are failing to reach their full potential.
“We heard from TfL that it is working to update its six commitments on car clubs, and this work will continue in the new year. Yet, if Zipcar goes ahead with its proposal, 90 per cent of London’s car club market will have disappeared by then.
“TfL must take action now to ensure that car club provision in London does not disappear entirely.”
Clashing with Ms Baker last Thursday, Sir Sadiq said he was “very sorry” to see it leave London but said it had already left other cities such as Brussels, Barcelona and Paris.
He accused Ms Baker of making “petty points” and “casting aspersions” said he wholly rejected her claim that TfL was to blame, pointing out that Zipcar was a private business.
The Standard has approached Zipcar for comment.
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