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Zipcar’s contract will begin July 1 and continue through March 31, 2009. The contract may be renewed for three additional years.

Over the course of the contract, city employees will have access to Zipcar’s fleet selection, including hybrids, standard sedans and small SUVs, ensuring access to the most appropriate car for their task.

Through its mobile reservation system, Zipcar provides cars-on-demand so city workers can quickly reserve cars online or with their cell phones.

Since 2004, car sharing has helped the city government eliminate 330 vehicles from its fleet, and administrators plan to continue streamlining the city’s fleet through the Zipcar contract.

“Our commitment to expand car sharing demonstrates that Philadelphia is supporting sustainability goals with real actions,” said Rina Cutler, deputy mayor of transportation and utilities for the city of Philadelphia. “Car sharing enhances existing programs in the city, and allows us to have a smaller fleet of vehicles and provide the same level of service while saving taxpayers money.”

The city expects to use between six and 10 cars a day from Zipcar, which is replacing a local nonprofit, PhillyCarShare, as the city’s rental car supplier.

In addition to the city of Philadelphia, Zipcar currently works with 35 municipalities and government organizations throughout the United States, Canada and the United Kingdom, including the city of Portland, Ore.; the Washington Metro Transit Authority (Washington, D.C.); the District Department of Transportation (Washington, D.C.); the Massachusetts Bay Transportation Authority; King County (Seattle); and Transport for London.