Neither Greenwich nor Lewisham councils will be offering Zipcar free permits to help keep the car-sharing business in London – despite a call from neighbouring Southwark for other boroughs to help out.

The American-owned company, which has about 550,000 customers in London, stopped accepting bookings in the capital on New Year’s Day as it consults with its staff on winding up the business. 

Drivers rent cars and vans by the hour or for a day via an app, and pick up the vehicles from dedicated parking spaces.

Car-sharing schemes are seen as crucial in persuading Londoners to ditch their own vehicles to free up space on the roads – but providers have to deal with each of the 32 boroughs to negotiate and pay for parking spaces, councils charging wildly differing fees.

Greenwich recently increased its charges for car club bays from £183 a year to £280 – but Lewisham charges between £500 and £750, and companies have to pay £793 in Lambeth. In Kensington & Chelsea, fees are up to £2,380. 

While they have no direct control over the companies, TfL and London mayor Sir Sadiq Khan have been accused of not taking the issue seriously. While Zipcar has not said why it is closing its London business, it has previously complained about the abolition of an exemption for electric vehicles for the central London congestion charge.

Zip car in marked bay
Car clubs play a key role in councils’ plans to cut traffic. Image: The Greenwich Wire

Two days before Christmas, Southwark Council offered Zipcar and  other companies free parking spaces until April next year in an attempt to persuade the company to stay.

James McAsh, Southwark’s cabinet member for clean air, streets and waste, said the closure of Zipcar would be a “disaster” for its ambitions to make streets easier to walk and cycle around.

“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.”

But Greenwich said it was not planning to follow Southwark’s lead. Calum O’Byrne Mulligan, the cabinet member for climate action, sustainability and transport, said: “While there are no plans to introduce free permits, we have worked hard to make car clubs as effective and accessible as possible by working with multiple operators. Our charges are not out of line with other boroughs – in fact, they are much lower with some charging up to £800. 

“There’s always more to be done if we want to reduce reliance on private cars, and we support the Mayor of London’s work to meet with multiple operators to ensure Londoners continue to have car clubs as a viable option.”  

Zipcar with parking ticket
Greenwich said it would investigate why a Zipcar had been ticketed. Image: The Greenwich Wire

Lewisham Council, which also had a deal with Zipcar for staff to use its vehicles, is also not following suit. A spokesperson told The Greenwich Wire: ““We are disappointed that Zipcar have ceased operating in the UK. We are always keen to work with providers that support our sustainable transport ambitions, and assist those who want to rely less on using a car.

 “The council is carefully considering alternative arrangements for our staff. We prioritise public transport for any work-related trips in and around the borough.”

The suspension of Zipcar has led to hundreds of vehicles being left in parking bays across the capital with users unable to access them. On Tuesday, one parked in a bay in Tallis Grove, Charlton was given a parking ticket – but Greenwich Council said this had nothing to do with the end of the service,

“Where a Zipcar vehicle is parked in an appropriately designated bay we will not be issuing penalty charge notices, and we continue to seek further engagement to better understand the current situation and the plans of Zipcar,” a spokesperson said, adding they would investigate why the car was ticketed.  

Zipcar has not responded to a request for comment.

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