City Car Club, which bought up the Whizzgo scheme, had eight cars on its books.
It withdrew from the city in December, saying it had experienced more vandalism to is Liverpool fleet than to all 26 of its Manchester cars put together.
Local councillors said another issue residents had raised was that their designated spaces were being taken by other motorists, meaning the car club users had to park elsewhere and received parking tickets.
Central ward councillor lNick Small said he was dismayed at the news there would be no scheme for the foreseeable future.
Cllr Small added: “It is vital that the council begins to view car clubs as a positive way to reduce car ownership, especially in the city centre.”
A council spokesman said: “We interviewed two operators but they could not provide the service we wanted.
“We are going to look at other cities and it may go out to tender again.
“We still want to have a car club but we have not been able to find an operator to satisfy it.”
