Car-sharing service Zipcar has announced plans to cease operations in the UK by the end of the year. The company, which is based in the United States and owned by Avis Budget, informed customers that it will temporarily suspend new bookings after December 31, pending the results of a consultation with its 71 employees.
James Taylor, the UK manager for Zipcar, confirmed in an email to members that a formal consultation was initiated with staff. He also noted that existing reservations scheduled to conclude by the end of the month will still be honored.
Zipcar currently has approximately 650,000 members in the UK, predominantly located in London. Customers utilize the service to rent vehicles on an hourly or daily basis through a mobile app and collect the cars from designated parking spots.
According to the company’s latest financial report for 2024, Zipcar attributed a decline in revenue—falling to £47 million from £53 million in the previous year—to the ongoing cost of living crisis affecting UK consumers. The company also reported an increase in after-tax losses, which rose to £11.6 million.
Further comment from Zipcar UK and Avis Budget has been requested regarding this situation.
Source: https://www.bbc.com/news/articles/cp8zv1gr0z9o?at_medium=RSS&at_campaign=rss