How such an arrangement would work in London, for example, is beyond my comprehension.
Where I live in Seattle, an area that isn't even in the downtown or Capitol Hill core, I am a maximum of 15-minute walk from two parks, a library, three shopping areas, two grocery stores, health care offices, and a major transit center. At the transit center, two bus routes that go to different parts of the city (an important thing, since two bus routes going to roughly the same place are basically the same bus) arrive every 12-15 minutes virtually the entire calendar day.
Does that not sound like something that many parts of London already have?
I lived there for a decade and only knew a single person who had a car (because they had to commute out west towards Slough).
Driving in London does not make any sense, it's expensive (congestion charge, parking), slow and impractical. Especially when London is made up of what is basically dozens of villages, all with their own high street.
I lived in many different parts of London and never had to walk more than 15-20 minutes to get anything I ever needed. Rarely I'd have to hop on the tube to get something specialised (which would probably not even be available outside of a large city like London).