Extract 2 – Reducing Urban Car Dependency

One of the major contributors to increased economic loss and public health strain in major metropolitan areas has been rising levels of traffic congestion and vehicle-related air pollution. Nearly half of all daily commutes in the UK's largest cities are still made via private single-occupancy petrol or diesel cars, with the government estimating that congestion costs the UK economy over £6.9 billion annually in lost productivity. In 2021, over 40,000 premature deaths across the country were linked to poor outdoor air quality, largely driven by transport emissions. The UK's car dependency rate remains significantly above the European urban average, as illustrated in Fig. 2.1.

Fig. 2.1 – Percentage of daily passenger trips made by private car in selected metropolitan areas (2022)

In an effort to reverse car dependency, urban transport authorities have launched various regulatory initiatives to encourage active travel and shared transit. Some cities have implemented low-emission zones, workplace parking levies, and expanded car-free pedestrian areas. However, these restrictive measures face backlash, with critics describing them as 'anti-car' policies that restrict personal mobility and disproportionately penalise lower-income drivers who cannot afford newer electric vehicles.

At the same time, the urban passenger transport sector is undergoing rapid structural change. Thanks to technological progress, new gig-economy ride-sharing platfoms (such as Uber and Bolt) and micro-mobility startups (such as Lime and Tier) have entered municipal markets, offering app-on-demand services. Traditional taxi networks have been forced to lower fares and develop their own digital booking systems to defend their market share. The substantial reduction in barriers to entry and sunk costs facilitated by app-based dispatch technology has made municipal transport submarkets significantly more contestable. However, critics argue these platforms increase overall vehicle mileage, worsen local congestion, and exploit self-employed drivers who lack basic employment rights.