Zipcar, a car rental company, has revealed its intention to shut down its operations in the UK by the year’s end. The UK general manager, James Taylor, informed customers via email that discussions are in progress, with bookings currently halted after December 31. Taylor stated that Zipcar is initiating formal talks with its UK staff to end operations in the country.
Customers who have reserved a car for the Christmas period will still be able to proceed with their bookings, while those scheduled for New Year’s will be contacted by the company. Refunds will be issued to members with reservations beyond December 31, and cancellation fees will be waived.
Taylor emphasized the temporary suspension of bookings pending the consultation outcome, mentioning that account access will be maintained until a final decision is reached. Zipcar, an American entity, provides hourly and extended rentals for cars and vans via a mobile app, offering three membership plans with varying costs.
The reason behind the sudden closure of Zipcar’s UK operations was not disclosed. However, the company assured customers that its US operations will continue unaffected. Nevertheless, individuals wishing to use Zipcar in the US must hold a US membership.
According to the company’s latest accounts, its UK branch employed 71 individuals as of the previous year, reporting increased losses of £5.7 million in 2024 due to reduced customer engagement. Zipcar’s financial report attributed these losses to escalating electricity and insurance expenses, market volatility, and a decline in revenue resulting from fewer trips and shorter durations.
The company cited the ongoing cost-of-living crisis as a contributing factor affecting consumer spending behavior. Zipcar remains committed to providing services in the US, with no plans to close operations there.