Zipcar ends UK operations leaving 650,000 members without access to vehicles – as Sadiq Khan is condemned for ignoring warnings the car-share service would leave London

Car-sharing club Zipcar has ceased operations in the UK with immediate effect, prompting a barrage of criticism of Sadiq Khan for failing to convince himself to stay in London.

The company, which offers car rental opportunities to its members in the capital for as little as an hour, suspended its operations at the end of last year as it considered whether to pull the plug following a downturn in business.

The UK arm launched in London in 2007 and has expanded to Bristol, Cambridge and Oxford. However, after leaving Brussels, Barcelona and Paris in 2024, it regressed to operating only in the capital, its only success story in Europe.

But that didn’t last long: accounts showed the firm lost money, posting an operating loss of £4m in 2024, after rentals and membership fees eclipsed the spiraling costs of insurance, maintenance and council parking permits.

Those following Zipcar’s demise have called on London Mayor Sadiq Khan to do more to support car clubs, which supporters say help remove unnecessary cars from the streets, and said today’s news was ‘entirely avoidable’.

But in an email to members this morning, managing director James Taylor confirmed Zipcar UK is no more. He has previously pleaded for Zipcars to be exempt from the £18 Congestion Charge (CC) which now covers electric cars.

He warned that the business would become ‘commercially unviable’ unless a helping hand was given.

As a result, only cars in the CC zone were given a discount. As of today, his warning has come true and 90 percent of London’s motoring club stock has been taken away.

The news will not go down well with London Mayor Sadiq Khan (pictured), who runs Zipcar and has been warned by London’s transport committee that he is failing to support motoring clubs.

‘Following formal consultation with our UK employees, we can now confirm that Zipcar will cease operating in the UK,’ he said.

‘In accordance with clause 7.5 of the member terms, please accept this as your written notice that we will officially close your account within 30 days.

‘Whether you use Zipcar occasionally or regularly, on behalf of the entire Zipcar UK team, we would like to thank you for becoming a member and being part of our journey.’

The company added that users with unpaid membership fees will be refunded these fees pro rata.

Richard Dilks, chief executive of carpooling advocacy organization CoMoUK, said the news was a ‘huge’ blow to its 650,000 members, 550,000 of whom are in London, who use it as an alternative to buying their own car.

‘Zipcar’s departure is a huge loss not only for the hundreds of thousands of people who rely on Zipcar vehicles as a cheap, comfortable and occasional way to travel, but also for London as a whole,’ he said.

‘Consequently, this episode highlights that a more coherent approach to carpooling is sorely needed in the capital and we will continue to work intensively with the boroughs and TfL. [Transport for London] and its associated operators.’

Mayoral Conservative transport spokesman Thomas Turrell said the firm’s departure was ‘entirely avoidable’.

‘Labour’s war on drivers, misguided tax raid and economic mismanagement are driving businesses out of Britain, costing jobs and opportunities and endangering the people who rely on their services,’ he said.

‘Instead of supporting businesses to create growth, Labor treats businesses as cash cows; He sees anything involving cars as bad, creating a hostile environment for businesses like Zipcar.

‘Ordinary Londoners will have to pay the price. I hope that companies like Zipcar can return to Britain to provide jobs and services to the public under a more economically sound Conservative government and Mayor.’

The Liberal Democrat group in Southwark, which offered Zipcar free parking for a year, wrote to Mr Khan expressing disappointment, describing the company’s departure as ‘predictable’ and London ‘less attractive’ to other motoring clubs.

Graham Neale, the group’s environment spokesman, said: ‘We had raised concerns about this aspect of travel long before Zipcar announced its departure, and the fact that this has now happened should make us think seriously about the policies that have led us here.’

The loss of Zipcar will be painful for those who want to use its fleet of cars and vans for errands, house moves, IKEA runs and days-long errands. But it would also hurt organizations like food banks that rely on Zipcars to deliver meals.

Croydon Council had a contract with Zipcar to provide its fleet of staff cars and has yet to respond to questions from the Daily Mail about how its workers will get by going forward.

An email was sent to Zipcar members today informing them that the business is closing.

Zipcar offered its members the ability to rent both cars and vans for as little as an hour at a time; This was an ideal option for those who do not have a car

Despite Mr Khan’s assurances that he ‘wants to see car clubs thrive’, the London Assembly transport committee believes his failure to properly support car clubs played a part in the club’s collapse.

Mr Khan did not act on a report the committee published in April last year, which called for a citywide strategy to support the firm across the capital.

Such a strategy would alleviate the administrative nightmare of negotiating individual parking rates with each of the 32 counties. But according to Seb Dance, deputy mayor for transport, this was not a gift from Transport for London.

Committee chair Elly Baker said: ‘There is no urgency from TfL on this matter. There is currently a patchwork approach to car clubs in London and they are failing to reach their full potential.

‘TfL must act now to ensure car club services in London do not disappear completely.’

But Seb Dance, London’s deputy mayor for transport, said it was not up to TfL to carry out such a scheme as it did not have parking powers in every borough.

With Zipcar now officially gone, competitors are circling to take its place. While rival firm Co Wheels is considering expanding in London, Turo, a service for people to rent their own vehicles and described as an ‘Airbnb for cars’, is also stepping up its marketing efforts.

It spent £120,000 on public transport advertising featuring slogans such as ‘No Zipcars, don’t worry’. Unlike Zipcar, Turo only offers car rentals for days, not hours.

But general manager Rory Brimmer said: Standard This week it was revealed that Zipcar is being ruined by its own ‘abysmal and ‘unsustainable’ business model, which puts all maintenance costs on the company itself.

He added: ‘Zipcar was a legend in the car-sharing game. I think they’ve done a great job of paving the way for car sharing.

‘There were 550,000 Zipcar users in London currently looking for an alternative. The risk is that they go out and buy a car now.

‘This won’t solve London’s problems. ‘We don’t need another half a million cars in the city.’

The removal of the 100 per cent discount on the Congestion Charge for electric vehicles is thought to have played a role in Zipcar’s decision to suspend rentals (image: Fare zone sign)

Competitors like Turo are circling; ‘Airbnb for cars’ firm spent £120,000 on advertising in recent days (pictured)

CoMoUK’s Richard Dilks says London needs to ensure these firms are given full support to operate to prevent the streets from being filled with more cars.

‘Our research shows that each car club car replaces 31 private cars in London, saving space and making the capital’s streets less congested and more enjoyable for everyone,’ he added.

‘We hope other car club operators will now step into the gap left by Zipcar and encourage them to act quickly to ensure as much continuity as possible for users.

‘For this to happen we need to see more moves from London boroughs to make the capital a more useful place where car sharing services can be offered.’

But the City Hall is thought to have concerns that Zipcars and other car club vehicles would actually contribute to more unnecessary traffic on London’s roads; This goes against Sadiq Khan’s flagship transport strategy.

But Zipcar’s decision may actually run counter to its plan to reduce car ownership by walking, cycling and using public transportation.

A CoMoUK survey, commissioned after Zipcar began advising on its closure, found that nearly 80 per cent of Zipcar users had bought or were considering buying a car of their own.

A spokesman for the Mayor of London said: ‘We know car clubs provide easy access to vehicles for journeys that cannot be made by public transport, supporting less crowded streets and cleaner air in London.

‘We are liaising extensively with car club providers, industry groups and counties managing car club provision to see if further support can be provided.

‘This includes hosting a major roundtable next month that will bring together key players in the industry.’