"External cost pressures continued to negatively impact the company. Whilst there was some improvement in fuel prices, electricity costs remained high throughout 2024. Resale market values continued to be challenging, which also drove higher costs. Year on year increases in the cost of motor insurance also placed further pressures on costs."
"I'm writing to let you know that we are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees. We will temporarily suspend bookings, pending the outcome of this consultation. This means it will not be possible to make any new bookings beyond December 31 2025, pending the outcome of the consultation."
"Car clubs are making a huge contribution to reducing car ownership and mileage, so if this proposal is confirmed it will be a major blow. Every car club vehicle replaces 31 private cars in London, freeing up space, cutting congestion and improving air quality for everyone. We need coherent car and lift sharing plans across London, as this news clearly demonstrates. It would also have a significant impact beyond London, harmin"
Zipcar will cease UK operations and has begun formal consultation with its 71 UK employees, suspending bookings and not accepting new bookings after December 31, 2025, pending the consultation outcome. The company cited external cost pressures including high electricity costs, challenging resale values, and year-on-year increases in motor insurance. Rising congestion charges and higher employer national insurance costs were also identified as contributors to the financial strain. The proposed closure will reduce car club availability in London, where shared vehicles replace many private cars, potentially increasing congestion and harming air quality while affecting users beyond London.
Read at London Business News | Londonlovesbusiness.com
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