Car rental company Zipcar has revealed its intention to halt its operations in the UK by the end of the current year. The UK general manager, James Taylor, informed customers via email that discussions are underway, and bookings beyond December 31 have been temporarily put on hold. Zipcar is initiating formal consultations with its UK employees with the proposal to discontinue operations in the UK.
Customers who have already reserved a car for the upcoming Christmas period will still be able to proceed with their bookings. However, those who have made reservations for New Year’s will be contacted by the company. Members with reservations after December 31 will receive a refund, and the cancellation fee will be waived.
Taylor stated, “We are proposing to cease the UK operations of Zipcar and have commenced formal consultations with our UK employees. Bookings will be temporarily suspended pending the outcome of this consultation, meaning no new bookings can be made beyond December 31, 2025.”
Despite the plan to cease UK operations, customer accounts will remain active until a final decision is reached post-consultation, allowing continued usage of Zipcars until December 31, 2025. Zipcar, an American company, provides hourly and long-term car and van rentals through a mobile app, offering three membership options with varying monthly costs.
The reason behind the sudden closure of Zipcar’s UK operations was not disclosed. Customers can still utilize Zipcar services in the US, as there are no plans to close operations there, though a US membership will be required.
As of the end of the previous year, the UK operation had 71 employees, as per the latest filed accounts, which also reported a deepening of losses to £5.7 million in 2024 due to reduced customer trips.
In the published accounts from October, Zipcar highlighted increased cost pressures throughout the year, including rising electricity and insurance costs, as well as market volatility affecting residual values, contributing to a challenging year. The pre-tax loss for the year ended December 31, 2024, significantly rose by £4,985,000 compared to the previous year, mainly attributed to decreased revenue resulting from fewer trips and shorter durations, reflecting the impact of the cost-of-living crisis and its effect on discretionary spending.