‘Pay by the hour’ car club Co-wheels has reduced its rates to £3.75 per hour or £17.50 per day in a "bid to make car clubs accessible for more people".

It follows the closure of Car2go, a car sharing business which operated in London and Birmingham, last month.

Co-wheels claims to save businesses thousands of pounds in subscribing drivers to the co-operative. It is currently providing fleet management services for sectors ranging from the NHS to universities and privately-owned businesses.

Members can access cars 24 hours a day, seven days a week,, with cars parked near residential and commercial areas in 35 locations from Aberdeen to Plymouth.

Fuel, tax, maintenance and comprehensive insurance are all included within the fee.

Cars are parked in designated parking bays and can be booked in advance or last minute either on-line or over the phone; dependent on area.

Since transport equates to more than 30% of CO2 emissions, Co-wheels' users are contributing to a more sustainable future.

On average one Co-wheels shared vehicle results in removing around 15 private cars and their emissions from the roads.

Many car owners jump in the car without thinking about it, whereas opting into a car club means choosing walking, cycling and public transport much more; only using the car club when it really is the best option. They drive less, they pollute less.

Pierre Fox, CEO of Co-wheels, said: "As a social enterprise we seek to save our users money and save the environment."