The City of Edinburgh Council has signed a four-year contract with Enterprise Car Club.
City Car Club, which was bought by Enterprise last year, introduced the first pay-as-you-drive car club in the UK in Edinburgh in 1999.
Over the past 17 years the Council has worked in partnership with various service providers to develop, promote and sustain the growth of car-sharing in Edinburgh.
The now revitalised scheme is intended to further drive down carbon emissions, reduce congestion and ease parking pressure across the city. Enterprise Car Club will be working in partnership with the City of Edinburgh Council to introduce more efficient vehicle technologies and greater access to vehicles to increase the sustainability of the scheme.
The contract also applies to the Council itself. Like other service users, Council staff will have access to a fleet of vehicles suitable to their varied car-sharing requirements.
Transport convener councillor Lesley Hinds said: "This is really good news for the city. By signing up Enterprise Car Club to provide an improved citywide car-sharing scheme across the Capital, we're helping promote a convenient, reliable alternative to private car ownership, which will cut down on congestion and competition for parking places as well as slashing carbon emissions. I'm sure we'll see more and more people signing up to become members, especially with the reduction in fees and hourly rates for vehicle use.
"It's great to see that Enterprise Club shares our commitment to improving Edinburgh's environment and cut harmful greenhouse gas emissions; ridding their fleet of diesel vehicles and agreeing to provide at least 12 electric vehicles clearly demonstrates that they're on board with this mission."
Khaled Shahbo, managing director, Enterprise Rent-A-Car UK & Ireland, said: "We are absolutely delighted to continue our very successful partnership with the city of Edinburgh. It is one of our oldest car club partners, was an early adopter and has been at the forefront of sustainable advancements in transportation."
The Council estimates that the Enterprise Car Club contract will generate more than £1m for the public purse over its four-year tenure, while helping greatly towards the Council's and national greenhouse gas targets of reducing emissions year on year.