Zipcar, a car rental company, has revealed its decision to cease operations in the UK by the end of the year. James Taylor, the UK general manager, informed customers via email that discussions are underway, and bookings beyond December 31 have been put on hold. The company is initiating formal consultations with UK employees regarding the proposal to discontinue operations in the UK.
Taylor assured customers who have already reserved a car for Christmas that their bookings will be honored. However, those who have scheduled a vehicle for the New Year will be contacted by the company. Customers with reservations post-December 31 will receive a refund without any cancellation charges.
The manager stated, “We are proposing to cease UK operations and have initiated consultations with our UK employees. Bookings have been temporarily suspended pending the consultation outcome, preventing new bookings after December 31, 2025.”
He further mentioned, “While we are planning to end operations in the UK, your account will remain active until a final decision is reached post the consultation period. This allows you to continue using Zipcars until December 31, 2025.”
Zipcar, an American company, provides hourly and longer-term rentals for cars and vans through a mobile application. The company offers three membership options: a free basic plan, a smart plan at £6 per month, and a plus plan costing £15 per month.
The reason for the sudden closure of Zipcar’s UK operations was not disclosed. Customers interested in using Zipcar in the US can still do so, as there are no intentions to close any US operations, but a US membership will be required for access.
As per the latest accounts, the UK operation had 71 employees by the end of the previous year. The company reported increased losses of £5.7 million in 2024 due to a decline in customer trips.
Zipcar’s accounts, released in October, highlighted challenges faced throughout the year, including rising electricity and insurance costs, and market volatility affecting residual values. The loss before tax for 2024 surged by £4,985,000 compared to the prior year, primarily due to decreased revenue from fewer trips and shorter durations, linked to the ongoing cost-of-living crisis impacting discretionary spending demand.