Car-sharing company ZipCar to end UK operations

Car-sharing platform Zipcar said it will close its UK operations by the end of the year.

The US-based company, owned by car rental giant Avis Budget, told customers it would temporarily suspend new bookings after December 31 to await the outcome of a consultation with its 71 staff.

UK boss James Taylor said in an email to members that the firm had launched a formal consultation with employees and bookings were being accepted to be completed by the end of the month.

ZipCar UK and Avis Budget have been contacted for comment.

The company has around 650,000 members in the UK who rent cars hourly or daily from an app and collect vehicles from car parks.

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

In its latest company accounts for 2024, Zipcar blamed the “cost of living crisis” affecting UK customers as the reason its revenues fell to £47 million from £53 million the previous year and its after-tax losses rose to £11.6 million.

Zipcar membership fees cover the cost of fueling or charging the vehicle, increasing financial pressure on the company as energy costs continued to rise last year, according to the same accounts.