"The majority of those injured have now been discharged, and there are no serious injuries", police said in a statement Sunday.
He was arrested at the scene in west London on suspicion of risky driving.
Britain has suffered five attacks blamed on terrorism so far this year, three of which involved vehicles, and the incident in an area packed with tourists at the weekend had prompted concerns that the collision had been a deliberate act.
On Sunday morning police said the man "was released under investigation while enquiries continue".
Eleven people were injured and taken to the hospital.
Scotland Yard said the man, who was arrested on suspicion of risky driving, was released on Sunday morning "under investigation".
Video footage posted on Twitter showed a man being restrained on the ground by members of the public in an area popular with families with young children.
The Metropolitan Police had confirmed the incident, which injured 11 people, as a "road traffic collision" and not terrorist related soon after it created panic in the busy tourist spot in the British capital. A man has been detained at the scene.
He said three female passengers in the vehicle told him that it was a private-hire taxi.
The current terror threat in the United Kingdom is at "severe" - the second highest level - meaning an attack is highly likely. "Then the guy was screaming", said Mr Cheshire.
A Downing Street spokesperson said British Prime Minister Theresa May is "being kept up to date on events".Reports suggest the black Toyota Prius which mounted the pavement was a licensed taxi cab.
Mr Cheshire later wrote on Twitter: "Thanks for messaging everybody".
"He (the man) was driving down the pavement and hit 11 to 12 people".
In June, three Muslim militants drove into pedestrians on London Bridge before they stabbed people at nearby restaurants and bars, killing eight.
A man held after a auto struck pedestrians outside a Londonmuseum on Saturday has been released, while remaining under investigation.
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