CityCarClub will purchase 400 new vehicles to add to its current fleet of 200 units as part of an expansion programme.
The company says membership has grown more than 200% over the past two years and the new fleet of vehicles will be needed to meet demand from the existing 10,000 members as well as expansion into several new sites. It allows members to book locally parked cars by the hour.
Chief executive Dirk van Dijl said: ‘Pay-as-you-go car clubs have just come of age now with many motorists wanting to reduce their carbon footprint.’
The fleet consists mainly of five-door hatchbacks with most vehicles used being Toyota Yaris, Ford Focus and Vauxhall Corsa. It also offers estate cars, LPG hybrids and electric vehicles.
The company has operations in London, Edinburgh, Reading, Brighton, Bristol, Bath, Huddersfield, Portsmouth, Poole, Lichfield and Norwich.