Zipcar, world's biggest car-sharing company, to close UK operation

"The world's biggest car-sharing company, Zipcar, has said it will close its UK operation, removing access to its shared fleet across London at the end of this year. The company, owned by the US car rental group Avis Budget, said it will suspend new bookings after 31 December, pending the outcome of a consultation on possible redundancies. The UK operating company had 71 staff last year, according to its latest accounts."

"The closure will be a blow to advocates of car-sharing as a more sustainable form of personal transport, as well as to some car clubs that relied on Zipcar to share private vehicles. James Taylor, Zipcar UK's general manager, wrote in an email to customers: We are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees. Taylor directed customers to the website of CoMoUK, a national charity for shared transport, to find other car-sharing options."

"The concept of car-sharing gained popularity during the coronavirus pandemic as Zipcar, Enterprise Car Club and Share Now offered app-based car rental by the hour, while companies such as Hiyacar, Turo and Getaround opened up the ability to rent neighbours' cars. However, companies running their own fleets have struggled to make a profit, with relatively high maintenance costs for fleets scattered around cities."

Zipcar will close its UK operation, ending access to its shared fleet across London and suspending new bookings after 31 December while consulting on redundancies. The UK operating entity employed 71 staff last year and reported an £11.7m loss for 2024. Avis Budget, Zipcar's owner, had downgraded Zipcar's valuation amid falling revenues in key markets. Existing bookings will be honoured through the Christmas period; users with bookings after 31 December will be contacted and paying subscribers refunded for the period beyond that date. Car-sharing popularity rose during the coronavirus pandemic, but fleet operators struggle with high maintenance costs and dispersed assets.

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