Car rental company Zipcar has revealed its intention to discontinue operations in the UK by the end of this year. James Taylor, the UK general manager, informed customers via email about the ongoing consultations and the temporary suspension of bookings beyond December 31. The company has initiated formal discussions with its UK employees regarding the proposal to halt operations in the country.
Taylor assured customers who have already reserved a car for Christmas that their bookings will be honored. However, individuals with bookings for the New Year will be contacted by the company. Customers with reservations after December 31 will receive a refund, and the cancellation fee will be waived.
In his message, Taylor stated, “We are proposing to cease the UK operations of Zipcar and have commenced formal consultations with our UK employees. Bookings will be temporarily suspended pending the consultation outcome. No new bookings will be accepted beyond December 31, 2025, until the consultation concludes.”
He further mentioned, “Although we are planning to discontinue operations in the UK, your account will remain active until a final decision is reached post-consultation. This means you can still utilize Zipcars until December 31, 2025.”
Zipcar, an American company, provides hourly and extended rentals for cars and vans through a mobile app. The company offers three membership options: a free basic plan, a smart plan priced at £6 per month, and a plus plan costing £15 per month.
The reason behind the sudden closure of Zipcar’s UK operations was not disclosed. 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; however, a US membership will be required.
According to the most recent accounts filed, the UK operation had 71 employees at the end of the previous year. The company reported increased losses of £5.7 million in 2024 due to a decline in customer trips.
In its October published accounts, Zipcar attributed the deeper losses to heightened cost pressures, including escalating electricity and insurance expenses, as well as market volatility affecting residual values. The loss before tax for the year ending December 31, 2024, surged by £4,985,000 compared to the prior year. This was primarily driven by a £3,950,000 revenue decline resulting from reduced trips and shorter trip durations compared to 2023, reflecting the ongoing impact of the cost-of-living crisis dampening discretionary spending demand.
