The company said it will utilise the acquisition to support fast-growing demand for car sharing and mobility services amongst businesses as well as for leisure motoring.

The agreement covers all of City Car Club’s assets, including its 800+ vehicles, 45 employees and 30,000 members. Its vehicles are available to members 24 hours a day, seven days a week in 17 cities around the UK.

In the immediate short-term, the Enterprise CarShare and City Car Club businesses will continue to operate as two separate brands, with a view to creating a combined entity in the future.

Enterprise vice-president, Brian Swallow said: “This is an exciting time for mobility businesses such as Enterprise. We see the acquisition of City Car Club as a way of extending our service to business and private motorists looking for flexible travel options. 

“As a privately owned business City Car Club already shares many of our values – in particular, our enthusiasm for innovation that genuinely drives customer service and delivers against customer needs. City Car Club even uses the same type of in-car technology as Enterprise CarShare. 

“Currently the Enterprise CarShare service is targeted at business users and our data shows that this is as important a market for car sharing in the UK as demand from city dwellers. However, the acquisition of City Car Club allows us to offer that same level of service, flexibility and convenience to private renters as well.”

Enterprise already has experience of private user car sharing in the US, where its membership-based Enterprise CarShare programme currently operates in universities, businesses and for individuals in cities across the country.