Volkswagen will be offering an all electric car sharing service in major cities in Europe like London from 2020.

The WE service will be rolled out in Germany next year before it is offered in other markets.

Jürgen Stackmann, Volkswagen brand board member for sales, said: “We are convinced that the car sharing market still has potential.

“That is why we are entering this market with a holistic single-source concept covering all mobility needs from the short journey that takes just a few minutes to the long vacation trip.”

VW’s on demand services will incorporate parking apps, location based voucher offers for retail locations and ride hailing services.

The vehicle-on-demand services available on the Volkswagen WE platform will be managed by UMI Urban Mobility International GmbH, Berlin (www.urban-mobility.io), a wholly-owned subsidiary of Volkswagen AG led by chief executive Philip Reth.

UMI began operating this year with a team of 30.

Reth said: “Our customers expect an environmentally-friendly fleet that takes them to their destination quickly and at a fair price – and that is exactly the experience we will be delivering.”