US car club, Zipcar has won an exclusive contract with Westminster Council in London.
According to the Financial Times, the company beat off competition from rivals, Streetcar and Connect by Hertz to operate an on-street car hire service which will be marketed under the Westminster Car Club brand.
Westminster is setting aside 100 bays for Zipcar across the borough this year, rising to 400 within four years. Kieran Fitsall, Westminster parking manager, said that the car bays would be converted from metered and “pay-and-display” spaces.
Concerns have been raised that the exclusive contract with the council could work against consumer interest by granting a monopoly on the area, although the council have defended their position, arguing that it gives them greater control over car sharing schemes.
It seems that the growing popularity of car clubs is attracting a host of newcomers into the field, including Zipcar who progressed into the London market, after successfully established itself across several US cities.
James Finlayson, chief executive of City Car Club, another successful car club operating in the UK, told the Financial Times that the booming demand from consumers was drawing in new entrants such as Hertz and Zipcar to the UK market who, along with existing competitors, were seeking to expand rapidly and partake in a “land grab” to secure the most lucrative bays.
The contract therefore, a triumph for Zipcar, is not the first of its kind, neighbouring Islington has a deal with Streetcar. The new Zipcar scheme will officially launch next month.








