My great grandmother was like your Mom... still driving in her early 90's. One day she pulled right out in front my school bus. Could have been a huge tradgey. She just wasn't safe to drive anymore.
As prefab said .. sale of the car would actually save her money , she could use for a cab... wouldn't cost much considering everything she needs is very close.
It's hard to give up the independence of driving but it would be awful if she were to hurt anyone.
If i lived in an area with public transportation or cabs I would seriously question my need for a car but I live in bfe there is not a single cab in 50 miles.
I hope your mom stays healthy and safe