"Zipcar has said it is to close its UK operations by the end of the year. The US-based company, which is owned by car rental giant Avis Budget, told customers it would temporarily suspend new bookings after 31 December, pending the outcome of a consultation with its 71 staff members. In an email to members, UK boss James Taylor said the firm had launched a formal consultation with employees and bookings due to finish by the end of the month were being honoured."
"In its most recent company accounts for 2024, Zipcar blamed the "cost of living crisis", which was affecting UK customers, for 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."
Zipcar will close its UK operations and temporarily suspend new bookings after 31 December while consulting 71 UK staff. Bookings due to finish by the end of the month are being honoured and members can use the fleet until 31 December. Avis Budget, Zipcar's owner, said the decision to cease UK trading from 2026 aims to streamline operations and improve returns. Zipcar has about 650,000 UK members, with more than 550,000 in London after prior city closures. 2024 accounts showed revenues fell to 47m from 53m and after-tax losses widened to 11.6m, with rising energy costs increasing financial pressure. The expansion of London's congestion charge to include electric vehicles from 26 December could add further liability.
Read at www.bbc.com
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