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Car2go Launches Smart Car Sharing in London Boroughs

Daimler and Europcar’s car2go launches in Islington, Newham and Sutton with 300 Smart cars, offering flexible short-term urban mobility and plans for rapid expansion.

By Editorial Desk Updated
Smart Fortwo car2go vehicle in San Diego, similar to 2012 London launch cars.
Smart Fortwo car2go vehicle in San Diego, similar to 2012 London launch cars. Ryou-kun16 / CC BY-SA 3.0

Car2go, the car-sharing venture from Daimler and Europcar, began operations in London in December 2012 with a fleet of 300 Smart cars. The scheme, which launched in Islington, Newham and Sutton, aims to make short-term urban car use as straightforward as hailing a black cab. Car2go has stated that it expects to increase its London fleet to 500 vehicles by the end of the year as more boroughs join the programme.

The car2go model allows registered users to pick up and drop off any available Smart car within the participating boroughs. Customers pay 35p per minute, £14.90 per hour or £59 for a full day, with fuel and parking included in the price. Parking is permitted in any meter bay within the boroughs covered by the scheme. The company tracks vehicles by satellite and handles refuelling and cleaning centrally. Users sign up for a one-off joining fee, which was being waived for early adopters at launch.

How car2go works for Londoners

Unlike traditional car hire, car2go does not require users to return vehicles to a fixed location. Instead, drivers can leave the car in any legal space within the operating area. This flexibility targets city dwellers who do not need a car every day but want access to one for short trips. The scheme’s pricing structure is designed to attract occasional drivers who might otherwise rely on taxis or public transport.

Car2go’s London launch followed its introduction in Ulm, Germany in 2009 and subsequent expansion to 16 cities across Europe and the US. According to the company, nearly half a million people had registered for the service by late 2012, with more than five million rentals completed. The company said it planned to expand both within London and to other UK cities, with longer-term ambitions for further European and Asian markets.

Implications for urban mobility and car ownership

Car2go’s entry into London reflects a broader shift among manufacturers towards mobility services. By offering on-demand access to vehicles without the costs and responsibilities of ownership, schemes like car2go appeal to urban residents who value flexibility. The Smart car’s small footprint suits dense city environments and helps address concerns over congestion and parking. For Daimler, car2go provides a new channel for Smart vehicles and a way to compete with other mobility offerings, including those from rival carmakers and tech firms.

The service’s success will depend on how quickly it can expand its operating area and fleet, as well as how it integrates with other forms of urban transport. Early users are limited to three boroughs, but car2go’s stated intention is to add more boroughs as agreements are reached. For drivers, the appeal lies in convenience and cost transparency, with no need to worry about insurance, maintenance or fuel. For London councils, the scheme offers a potential tool to reduce private car use and encourage shared mobility.

How car2go compares to other schemes

Car2go is not the only car-sharing initiative targeting urban drivers. Other manufacturers have launched their own schemes, such as Mini’s owner-focused DriveNow, while Toyota has piloted EV car sharing in France. The competitive landscape is evolving as manufacturers and mobility firms seek to capture a share of the growing market for urban transport alternatives. Car2go’s focus on Smart cars and its pay-per-minute model set it apart from traditional car clubs and fixed-location hire.

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