Zipcar plans to exit UK

Britain’s largest car club suspends bookings after 31 December

Britain’s largest car-sharing provider, Zipcar, is planning to close its UK operations by the end of the year.

The US-based company, which is owned by car rental giant Avis Budget, is to suspend new bookings after 31 December, pending the outcome of a consultation with its staff.

It has been reported that the firm has launched a formal consultation with around 70 employees. In an email to customers James Taylor, Zipcar UK’s general manager wrote: “We are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees.” 

Taylor directed customers to the website of CoMoUK, a charity for the shared transport sector, to find other car-sharing options.

A message on the Zipcar UK website confirms this: “Please note: Zipcar proposes to cease operations in the UK, subject to formal consultation with affected employees. During this period, we will not be accepting new member applications. Existing members should check our Help Centre for further details.”

The company has about 650,000 members in the UK who rent cars by the hour or day from an app and collect the vehicles from parking spaces, making it the UK's largest car-sharing operator. Zipcar is thought to run nearly 3,000 vehicles, including cars and vans, in the UK.

Avis Budget has confirmed that it is planning to close Zipcar UK, but states that markets remain unaffected.

The spokesperson said the decision to cease trading in the UK from 2026 was part of a plan to streamline operations, improve returns and position the company for long-term sustainability and growth.

Zipcar was founded in 2000 by two entrepreneurs in Cambridge, Massachusetts, before being bought by Avis Budget in 2013 for $491m (£371m). It operates in 25 US states, and in three cities in Canada, according to its website.

Last year Zipcar closed its operations in Oxford, Cambridge and Bristol to focus on its core London market, where it has more than 550,000 members.

In its most recent company accounts for 2024, Zipcar revealed UK revenues falling to £47m from £53m the year before, while its after-tax losses had widened to £11.6m. 

According to the same accounts, Zipcar membership fees cover the cost of fuelling or charging the vehicle and, as energy costs continued to rise last year, it has added to financial pressures on the company.

The accounts stated that the “cost of living crisis” was affecting spending decisions by UK customers.

If it continues operating the company would become liable for the London congestion charge in London, which is expanding to include electric vehicles from 26 December. The changes to the congestion charges have been estimated to add £1m annually to car club costs in the capital. 

Reactng to reports about Zipcar's decision to leave the UK, Richard Dilks, chief executive of CoMoUK, said: “Car clubs are making a huge contribution to reducing car ownership and mileage, so if this proposal is confirmed it will be a major blow.

“Every car club vehicle replaces 31 private cars in London, freeing up space, cutting congestion and improving air quality for everyone. We need coherent car and lift sharing plans across London, as this news clearly demonstrates.

“It would also have a significant impact beyond London, harming attempts to provide more low cost access to EVs and support public and active transport.”