Zipcar, a car rental company, has announced its decision to cease operations in the UK by the end of the year. The UK general manager, James Taylor, informed customers via email that consultations are underway, leading to the temporary suspension of bookings beyond December 31. The company is initiating formal discussions with its UK employees regarding the proposal to discontinue operations in the UK.
Existing customers who have reserved a car for Christmas will still be able to proceed with their bookings as scheduled. However, customers with New Year bookings will be contacted by the company. Refunds will be issued to members who have reservations after December 31, and the cancellation fee will be waived.
Mr. Taylor stated, “We are proposing to cease the UK operations of Zipcar and have initiated formal consultations with our UK employees.” Bookings will be temporarily suspended until the consultation outcome is determined, preventing new bookings beyond December 31, 2025.
Although Zipcar plans to halt operations in the UK, customer accounts will remain active until a final decision is reached after the consultation process. This allows customers to continue using Zipcars until December 31, 2025.
Zipcar, an American company, provides hourly and longer-term vehicle rentals via a mobile app. The company offers three membership options: a basic plan with no monthly fee, a smart plan for £6 per month, and a plus plan for £15 per month.
The reason behind the sudden closure of Zipcar’s UK operations was not disclosed. Customers interested in using Zipcar in the US can continue to do so, as there are no plans to close operations in the United States. However, a US membership will be required for access.
As of the end of last year, the UK operation had 71 employees, according to the latest filed accounts. The company reported increased losses of £5.7 million in 2024 due to a decline in customer trips.
In its published accounts from October, Zipcar highlighted facing elevated cost pressures throughout the year, including rising electricity and insurance expenses, and a volatile market for residual values. The company attributed the significant increase in pre-tax loss in 2024 to a decline in revenue resulting from fewer trips and shorter average trip durations compared to the previous year, influenced by the ongoing cost-of-living crisis suppressing discretionary spending demand.