Zipcar, a car rental company, has revealed its intention to cease operations in the UK by the end of this year. The UK general manager, James Taylor, informed customers via email that the company is currently in consultations and has stopped accepting bookings beyond December 31. Taylor stated that Zipcar is initiating formal discussions with its UK employees regarding the proposal to discontinue operations in the UK.
Existing customers who have reserved a car for Christmas will still be able to proceed with their bookings, while those with New Year bookings will be contacted by the company. Members with reservations after December 31 will receive a refund without incurring any cancellation fees.
Although Zipcar plans to halt operations in the UK, customer accounts will remain active until a final decision is reached after the consultation process, allowing them to use Zipcars until December 31, 2025.
Zipcar, an American company, provides hourly and long-term car and van rentals through a mobile app, offering three membership options: a no-cost basic plan, a £6 per month smart plan, and a £15 per month plus plan.
The reason behind the sudden closure of Zipcar’s UK operations was not disclosed. Customers in the US can continue to use Zipcar as there are no plans to shut down operations there, but they will need a US membership to access the service.
At the end of the previous year, Zipcar’s UK operation had 71 employees, with reported losses deepening to £5.7 million in 2024 due to a decline in customer trips. The company attributed the increased losses to rising electricity and insurance costs, as well as market volatility affecting residual values, in a challenging year marked by decreased revenue from fewer and shorter trips compared to the previous year, reflecting the impact of the ongoing cost-of-living crisis suppressing discretionary spending.