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Strategically placed ANPR cameras. Because of railways and such it's impossible to make all but short journeys without crossing a fairly small number of pinch points.
The goal is to make regular drivers switch vehicles, so it's not a problem if some journeys aren't picked up, or if a minority of drivers figure out where the cameras are and aren't.
How does it work, are there just shitloads of ANPR cameras or something?
How do they know if the car has moved etc?