The Car Club will provide on-site vehicles for local residents and businesses at the new Barking Riverside London development in East London.
The number of licenses for private-hire drivers in London has almost doubled since the rise of ride-hailing services like Uber and its competitors, from 59,000 in 2009-10 to 114,000 in 2017-18.
Virtuo, which offers new Mercedes A-Class and GLA models starting at 35 pounds ($45.72) a day, will have vehicles available in five locations throughout the city.
A London court granted the license after Uber lawyers said the company had made extensive changes to its reporting and screening policies, as well as management.
Drivy launched with 450 vehicles in London and also operates in France, Germany, Spain, Austria, and Belgium. The service rents both private and business vehicles to customers.
This is the second city launch for ViaVan, following its launch in Amsterdam last month.
A new service offered at London Gatwick Airport will allow travelers to rent out their vehicles while on vacation.
Transport for London didn't renew Uber's license to operate, citing various issues with the ride-hailing service. Uber's license in London expired on Sept. 30.
Uber will ban its drivers in London from using vehicles that are not hybrid or fully electric by 2020 in an effort to curb illegal levels of pollution in the city.
Hertz UK has launched its rental service from Sofitel London Gatwick Hotel, becoming the only car rental company to have fleet available at the airport's North Terminal.
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