Zipcar, a car rental company, has revealed its intention to cease operations in the UK by the end of this year. The UK general manager, James Taylor, informed customers via email that discussions are ongoing, with bookings halted beyond December 31. Taylor stated that Zipcar is initiating formal consultations with its UK employees regarding the proposal to discontinue operations in the UK.
Existing customers who have reserved a car for the Christmas period will still be able to proceed with their bookings. However, individuals with vehicle reservations for the New Year will be contacted by the company. Members holding reservations after December 31 will receive a refund without any cancellation fees.
The manager emphasized that while the UK operations are proposed to be terminated, customer accounts will remain active until a final decision is reached post-consultation, allowing them to utilize Zipcars until December 31, 2025.
Zipcar, an American company, provides hourly and long-term vehicle rentals for cars and vans through a mobile app. The company offers three membership options: a free basic plan, a smart plan for £6 per month, and a plus plan for £15 per month.
No specific reason was disclosed for the sudden closure of Zipcar’s UK operations. However, customers interested in using Zipcar in the US can continue to do so, as there are no plans to shut down operations in the States, although a US membership will be required.
As of the end of last year, the UK branch had 71 employees, as per the latest financial accounts. The company reported increased losses of £5.7 million in 2024 due to a decline in customer trips.
In their published accounts from October, Zipcar highlighted challenges such as rising electricity and insurance costs, market volatility, and a decrease in revenue due to fewer trips and shorter durations compared to the previous year. These difficulties were attributed to the ongoing cost-of-living crisis impacting discretionary spending.
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