Car Clubs Return to Southwark After Zipcar Exit – Southwark 2026

Key Points

• Zipcar exited the entire UK market in December 2025, ending its car-sharing operations in Southwark and other boroughs.
• Southwark Council has now signed three new partnerships with HiyaCar, Enterprise Car Club, and Co-wheels to bring car clubs back to the borough.
• The council previously offered Zipcar 200 free parking spaces in a bid to retain the service, but the company left due to cost pressures.
• Around 60% of households in Southwark do not own a car, making car clubs a vital occasional-drive option for residents.
• The new scheme will start with:
  • HiyaCar: 10 vehicles
  • Enterprise Car Club: 15 vehicles
  • Co-wheels: 5 vehicles
    total of 30 vehicles initially.
• Vehicles will be located in bays from London Bridge to Dulwich, covering key parts of Southwark.
• Southwark Council is offering free parking spaces to car clubs to encourage them to operate in the borough.
• James McAsh, leader of Southwark Council, said the partnerships will “make a huge difference” for residents.
• The development is expected to improve access to occasional driving for non-car-owning households and support flexible mobility in South London.

Southwark (South London News) July 2, 2026 – Car clubs are set to return to a South London borough following Zipcar’s departure last December, as Southwark Council announces three new partnerships with HiyaCar, Enterprise Car Club and Co-wheels that will bring 30 vehicles to bays from London Bridge to Dulwich.

What prompted Zipcar’s exit from Southwark and the wider UK market?

Zipcar, one of the longest-established car-sharing brands in the UK, announced in December 2025 that it would leave the entire UK market.

As reported by the journalist covering the Southwark story for myLondon News, the company cited “cost pressures” as the main reason for its decision.

Before exiting, Southwark Council had already tried to keep Zipcar in the borough by offering the company 200 free parking spaces in December 2024.

Despite this incentive, Zipcar chose to withdraw from the UK altogether, ending its operations in Southwark and other areas where it had previously provided car-sharing services.

This move created a gap in occasional driving options for residents who do not own a car but need one for specific trips.

Why are car clubs considered important for Southwark residents?

Southwark Council has highlighted that car clubs play a “vital role” for residents because roughly 60% of households in the borough do not own a car.

As explained by council leaders, these services are mostly used by people who need to drive occasionally, rather than for daily commuting.

According to the myLondon News report, council bosses argue that car clubs help fill a mobility gap for households that rely on public transport, walking or cycling for most journeys but still face situations where a car is necessary, such as bulk shopping, transporting equipment, or visiting areas with limited public transport links.

By providing access to a vehicle without the costs of ownership, car clubs can support more flexible and cost-effective travel options.

How will the new car club partnerships work in Southwark?

Southwark Council has announced three new partnerships to replace Zipcar’s services: with HiyaCar, Enterprise Car Club and Co-wheels. As reported by the journalist from myLondon News, the council is offering free parking spaces to these car clubs in a bid to encourage them to operate in the borough.

The initial rollout will include:

• HiyaCar, bringing 10 vehicles to Southwark
• Enterprise Car Club, bringing an initial 15 vehicles
• Co-wheels, bringing 5 vehicles

This gives a total of 30 vehicles at the start of the scheme. The cars will be located in designated bays stretching from London Bridge to Dulwich, covering key areas across Southwark.

Residents will be able to book these vehicles through the respective car club platforms, paying per use rather than committing to long-term ownership or hire contracts.

What has Southwark Council said about the new scheme?

James McAsh, leader of Southwark Council, said the new car-sharing partnerships will “make a huge difference” for residents.

As quoted in the myLondon News article, McAsh emphasised that the return of car clubs is an important step in improving mobility options for households that do not own a car.

The council’s position, according to the report, is that car clubs are a practical solution for occasional driving needs, especially in a borough where two out of every three households do not have their own vehicle.

By partnering with multiple providers rather than relying on a single brand, the council aims to create a more resilient and diverse car-sharing network that can better withstand market changes.

How does this development fit with wider car club trends in London?

Zipcar’s exit from the UK market is part of a broader shift in the car-sharing sector, with cost pressures and changing operating conditions affecting several providers.

As noted in general journalism guidance on news writing, understanding the wider context helps readers see why a local development like Southwark’s new partnerships is significant beyond the immediate borough.

Southwark’s approach of offering free parking spaces to car clubs mirrors tactics used by other London boroughs and local authorities that have tried to support car-sharing as part of sustainable transport strategies.

By working with multiple operators, the council is also reducing the risk of another single-provider collapse leaving residents without any car club option, a vulnerability that became clear when Zipcar left the UK.

Background to the Development: Zipcar’s Exit and Southwark’s Response

Zipcar had been a presence in Southwark and other London boroughs for many years, offering residents the ability to book short-term vehicle access through an app-based system. In December 2024, Southwark Council attempted to secure Zipcar’s continued presence by offering the company 200 free parking spaces, recognising the value of car clubs for non-car-owning households.

Despite this incentive, Zipcar announced in December 2025 that it would exit the entire UK market, citing cost pressures as the key factor.

This decision left Southwark without a major car-sharing provider and created a need for the council to find alternative solutions.

The council’s response was to seek partnerships with other car club operators, leading to the agreements with HiyaCar, Enterprise Car Club and Co-wheels that are now being implemented.

The background to this development therefore includes:

• Long-standing reliance on Zipcar as a car-sharing option in Southwark
• Council intervention via free parking spaces to retain Zipcar
• Zipcar’s UK withdrawal due to cost pressures
• Council decision to pursue multiple new partnerships rather than seek a single replacement provider

This sequence of events explains why Southwark is now moving to a multi-operator model instead of simply replacing Zipcar with another single brand.

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Prediction: How Could This Development Affect Southwark Residents and Local Transport?

This development is likely to affect Southwark residents in several practical ways, particularly those who do not own a car but occasionally need one.

For non-car-owning households, the return of car clubs could:

• Provide more flexible access to vehicles for bulk shopping, transporting goods, or visiting areas with limited public transport.
• Reduce the pressure to consider buying a car, helping households avoid the high costs of ownership, insurance, maintenance and parking.
• Offer a practical alternative to rental companies for short, local trips, potentially at lower cost and with simpler booking processes via mobile apps.

For the wider transport system in Southwark and South London, the new partnerships could:

• Support the council’s broader mobility goals by offering an occasional-drive option that complements walking, cycling and public transport rather than replacing them.mediahelpingmedia+1
• Reduce the need for some households to own a car, which could in time contribute to lower demand for private parking spaces and potentially support reallocation of some road space to other uses.
• Increase the resilience of local car-sharing provision by using multiple operators, making it less likely that a single provider’s exit will leave residents without any car club option.