Car clubs have taken a bite out of
traditional company car pool business as they continue to expand
into the corporate market.

City Club Car, for example, has 30%
corporate users across the country, rising to 64% in Southampton,
where its corporate penetration is

James Finlayson, managing director
of the company, which formed in 2000, said: “Business is a large
area where we are seeing growth at the moment.

“There’s no need for the company to
do any fleet management because we look after all that ourselves.
We clean the cars, service them, do health and safety checks.
Everything is down to us. It is a fixed cost. There is no
depreciation tucked away.”

Brighton & Hove City Council
has sold off 9 vehicles, half of its car pool, and replaced it with
City Car Club vehicles, thereby giving nearly 300 members of staff
membership to the club.

Robert Kingdom, marketing manager of Masterlease, said: “Car
clubs are starting to change aspects of our market and the services
we are providing. Customers are talking about hourly renting and
that type of activity which is similar to the proposition offered
by car clubs.”