Zipcar, a leading car-sharing company owned by Avis Budget, announced it will cease operations in the UK at the end of this year, impacting its shared fleet access across London. The company has halted new bookings through its app from January 1, 2025, while consulting with its 71 employees about potential redundancies.
The decision comes amid a challenging climate for car-sharing services, characterized by declining revenues and increased operational costs—factors that have been reported to have affected the overall valuation of Zipcar. Following Zipcar’s departure, advocates for car-sharing, a reportedly more sustainable transport option, may see reduced services, particularly as many smaller car clubs depend on Zipcar for their operations.
James Taylor, Zipcar UK’s general manager, informed customers of the planned closure in an email, suggesting they explore alternative car-sharing options through CoMoUK, a charity focused on shared transportation. The imminent closure also coincides with changes to London’s congestion charge, which will soon include electric vehicles—all of which would have further financial implications for car-sharing companies like Zipcar. The increase in costs might result in additional charges for users when accessing cars in affected zones.
The chief executive of CoMoUK noted that the situation highlights a lack of supportive policies for car-sharing initiatives in the UK, which lags behind several European nations in the availability of shared vehicles per capita. The organization currently reports 328,000 car club users in the UK, many of whom may be compelled to resort to private car ownership due to this development.
Zipcar, which began operating in the UK over two decades ago and was acquired by Avis Budget in 2013, reported a significant loss of £11.7 million for 2024. Despite the closure, the company will honor existing bookings through January 2025 and will refund ongoing subscriptions beyond that date.
Source: https://www.theguardian.com/business/2025/dec/01/zipcar-worlds-biggest-car-sharing-company-to-close-uk-operation