Zipcar to Close UK Operations Amid Financial Pressures and Policy Shifts

Zipcar, the world’s largest car-sharing operator, will shut down its UK business at the end of the year, ending access to its shared fleet across London.

The company, owned by US rental group Avis Budget, said it will stop accepting new bookings after 31 December as it begins a formal consultation on proposed redundancies. Zipcar UK employed 71 staff last year, according to its most recent filings.

The withdrawal represents a significant setback for advocates of car-sharing as a lower-impact alternative to private car ownership, and for car clubs that partnered with Zipcar to offer shared use of privately owned vehicles.

James Taylor, Zipcar UK’s general manager, informed customers by email that the firm was “proposing to cease the UK operations of Zipcar” and had opened consultations with employees. He advised users to seek alternative operators through CoMoUK, the national shared transport charity.

The move follows a difficult period for car-sharing businesses. In March, the Guardian reported that Avis Budget had quietly cut the valuation of Zipcar amid falling revenues and rising costs in several key markets.

The timing of the UK closure coincides with London’s congestion charge rise in January and the extension of the levy to electric vehicles, including those used by car clubs. Zipcar would have been liable for charges of up to £18 per day for cars entering the zone, except for the limited number based permanently inside it. Industry estimates suggest the changes could add £1m a year to car-club operating costs, most of it falling on Zipcar. The company was thought to manage nearly 3,000 vehicles, the majority of the UK’s 5,300 shared cars and vans.

A spokesperson for London mayor Sadiq Khan said car clubs remained important to reducing private car ownership, adding that electric car clubs with dedicated parking bays inside the congestion charge zone would receive a full discount from January.

Richard Dilks, chief executive of CoMoUK, described the closure as evidence of inadequate policy support for car-sharing. The UK has only 0.7 shared cars per 10,000 people, compared with 2.2 in Germany and 4.4 in Switzerland. He warned that many of the UK’s 328,000 car-club users may now be forced into private ownership.

Founded in 2000 in Cambridge, Massachusetts, Zipcar was acquired by Avis Budget in 2013 for $491m. It will continue to operate in 25 US states and three Canadian cities. In the UK, the company reported a £11.7m loss for 2024.

Zipcar said it will honour existing bookings, including over the Christmas period, and will contact customers with reservations extending into the new year. Subscribers will receive refunds for any period after 31 December.