Zipcar, the UK’s biggest car-sharing company has announced that it is shutting down its UK operations this year. The move will affect Zipcar’s current 650,000 subscription members across the country, as well as seeing thousands of its cars being removed from UK streets.
The decision, which comes not long after the UK budget was announced, is a big move for the company, which has been growing its UK presence for many years.
The Rise In Popularity of Zipcar
If you’ve moved house or been on a roadtrip in the UK over the past few years, you’ve probably heard of – or considered – renting a Zipcar.
Zipcar allowed users to rent cars and flexibly use the vehicles without the costs of full ownership. Launched in 2000 in the US, it expanded quickly and gained popularity amongst young urban dwellers who wanted new modes of mobility without needing to worry about parking, insurance or maintenance.
Its recent closing is a huge blow to sustainable transport and mobility across the UK.
How Zipcar Customers In The UK Will Be Affected
In an email to its customers, Zipcar UK’s General Manager James Taylor said “We are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees.” According to the BBC, this move will affect 71 staff members, a huge blow before the Christmas break.
Zipcar have confirmed that all bookings over the festive period up until the 31st December will be honoured, whilst members who have paid beyond that date will be contacted and refunded directly.
An Avis Budget Group spokesperson, the company that own Zipcar, said: “Today, Zipcar informed UK members that we are proposing to cease Zipcar’s operations in the UK and have begun the required formal consultation with our UK employees.
“This proposal is part of a broader transformation across our international business, where we are taking deliberate steps to streamline operations, improve returns, and position the company for long-term sustainability and growth. “As part of this proposal, new bookings in the UK will be suspended beyond 31 December 2025, subject to the outcome of the consultation.
“Zipcar UK will continue to operate as usual during this period. All other markets remain fully operational and unaffected.”
It’s worth noting that Zipcar is still going to operate across the US and Canada, so only UK operations will be affected.
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Why Is Zipcar Leaving The UK?
The announcement that Zipcar is closing comes after the business has battled some financial and operational headwinds in the past few years.
Some of these include:
Falling Revenues and Rising Costs
Zipcar UK revenue dropped from £53m to £47m in 2024, with after-tax losses growing to £11.6m. (BBC).
The company blamed the cost-of-living crisis and the high energy prices that came with it, which meant running the fleet became more expensive, especially as membership included fuel and charging.
Congestion Charge Costs
From 26 December, London’s congestion charge is expanding to include electric vehicles and is going to increase in price too.
For Zipcar, this cost would largely fall on them, further eating into their budget loss. Whilst the company didn’t explicitly say this was a reason for them leaving, it’s no coincidence that both are falling around the same time.
Shrinking UK Market
Zipcar used to operate in Oxford, Cambridge and Bristol to diversify away from London, however, it closed these to focus on London, which had more than 550,000 members.
Signs Of Wider Issues For The UK
Zipcar’s exit isn’t just sad news for the UK, it’s bad news. The company’s exit highlights some wider issues that the UK is facing; vehicles are too expensive to maintain, insurance costs are soaring and the price of energy and fuel is way too high.
If a car company that operates on a sharing model finds it hard to keep afloat, what does that mean for the rest of us?
What Now?
Zipcar’s story continues, but without the UK. For customers, bookings through to December 31st will be honoured and refunds will be fairly issued.
And with nearly 3,000 Zipcar vehicles across the UK soon to be leaving, urban dwellers will certainly feel their disappearance.
TechRound contacted Zipcar for comment but did not receive a response.
