Zipcar Shuts Down: The End of an Era for Car-Sharing in the UK

In a stunning announcement, car-sharing company Zipcar has decided to end its operations in the UK by the close of 2026. The US-based service, a subsidiary of Avis Budget, has already informed its customers that new bookings will be halted after December 31, pending consultations with its 71 employees. James Taylor, the UK leader of Zipcar, communicated via email that while the company will honor all existing bookings through the end of the month, employees will undergo a formal consultation process regarding the closure.

Zipcar has established a significant presence in the UK market, boasting about 650,000 members who use the app-based service to rent vehicles by the hour or day. The company has recently narrowed its focus to London, where it has over 550,000 members, abandoning operations in Oxford, Cambridge, and Bristol last year. The decision to exit the UK stems from a strategic move aimed at streamlining operations and enhancing the company’s long-term sustainability and financial returns.

Financial woes have plagued Zipcar in recent times, with revenue dropping from £53 million to £47 million year over year, and an increase in after-tax losses to £11.6 million. Factors contributing to these losses include the ongoing cost of living crisis affecting UK customers and rising energy prices, which have further strained the company’s financial stability.

Moreover, Zipcar will face the upcoming expansion of the London congestion charge, which will soon include electric vehicles, adding another layer of financial challenge. Although Avis Budget has stated that operations in other markets remain intact, the closure of Zipcar UK marks a significant shift in the car-sharing landscape across the region.