Zipcar, the car-sharing platform, has announced its intention to cease operations in the UK by the end of the current year.
The US-based company, a subsidiary of car rental giant Avis Budget, has informed its UK customers that it will temporarily suspend new bookings after December 31st, pending the outcome of a consultation process with its 71 staff members.
In an email communication to members, UK head James Taylor stated that Zipcar has initiated a formal consultation with employees and that existing bookings scheduled to conclude by the end of December will be honoured.
An Avis Budget spokesperson confirmed the plan to close Zipcar UK, clarifying that “all other markets remain unaffected” by this decision.
Zipcar members will retain access to the company’s fleet throughout the Christmas period and until December 31st, according to the statement.
The company boasts approximately 650,000 members in the UK who utilize a mobile app to rent vehicles by the hour or day, retrieving them from designated parking locations, making it the UK’s largest car-sharing service.
An Avis Budget spokesperson cited the decision to discontinue trading in the UK from 2026 as part of a broader strategy “to streamline operations, improve returns, and position the company for long-term sustainability and growth”.
Zipcar previously closed its branches in Oxford, Cambridge, and Bristol in the preceding year to concentrate on its primary market in London, where it maintains a membership base exceeding 550,000.
In its most recent financial filings for 2024, Zipcar attributed declining revenues, which fell from £53m to £47m year-on-year, and widening after-tax losses of £11.6m to the “cost of living crisis” affecting UK consumers.
The same financial statements indicate that Zipcar membership fees cover the costs associated with fuelling or charging vehicles. The continued rise in energy costs throughout the past year has further contributed to the financial pressures faced by the company.
The company will also be subject to the expanded London congestion charge, which is set to include electric vehicles from December 26th. However, this factor was not explicitly mentioned in Zipcar’s member communications or financial accounts.
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