In a surprising move, the car-sharing platform Zipcar has announced plans to shut down its UK operations by the end of 2025. The US-based company, owned by rental giant Avis Budget, cited a need to “streamline operations, improve returns, and position the company for long-term sustainability and growth” as the driving force behind the decision.
According to an email sent to Zipcar’s UK members, the company will temporarily suspend new bookings after 31 December 2022, pending the outcome of a consultation with its 71 staff members. Current members will still be able to use the fleet over the Christmas period and until the end of 2025.
Zipcar, the UK’s largest car-sharing operator, boasts a membership of around 650,000 customers who rent vehicles by the hour or day through a mobile app. The company had previously scaled back operations in Oxford, Cambridge, and Bristol last year to focus on its core London market, where it maintains over 550,000 members.
In its most recent financial accounts for 2024, Zipcar blamed the “cost of living crisis” affecting UK customers for a drop in revenue from £53 million to £47 million year-on-year. The company’s after-tax losses also widened to £11.6 million during this period. Rising energy costs, which are passed on to members, have added to the financial pressures faced by the company.
An Avis Budget spokesperson confirmed the plans to close Zipcar’s UK operations, stating that “all other markets remain unaffected.” The decision is part of a broader strategy to streamline the company’s operations and position it for long-term growth and sustainability.
The closure of Zipcar’s UK business will undoubtedly have an impact on the country’s car-sharing landscape, leaving many customers searching for alternative solutions. As the company navigates this transition, it remains to be seen how the evolving market conditions and changing consumer preferences will shape the future of the car-sharing industry in the UK.