New car hire scheme for Stelios

People will soon be able to rent out the cars of other motorists in a new scheme unveiled by two leading online entrepreneurs.

Sir Stelios Haji-Ioannou, founder of easyJet, and creator Brent Hoberman, have joined forces to set up a new car club venture.

The pair will officially launch easyCar next year, which is billed as a cheaper alternative to traditional car rental as it will allow people to use smartphone apps to book slots in their neighbours' vehicles.

Sir Stelios said easyCar "could prove to be the future of car rental and ownership in cities of the future".

All cars that take part will be fitted with automatic entry and tracker systems.

Car owners will be able to tell interested parties when their car is available and at what price, while easyCar will insure the owner when it is hired out.

The scheme will be tested in London in the new year using 1,000 cars.

Copyright © Press Association 2011