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Zipcar UK to Close Operations amid Rising Costs and Financial Pressures

Transportation and Logistics

Business Honor Zipcar UK Shuts Down Amid Cost Pressures

Business Honor
02 December, 2025

London’s largest car-sharing service shuts down as membership, energy costs, and congestion charges rise.

The car-sharing company Zipcar said it would shut down its Zipcar UK operations by the end of the year, in one of the most significant changes to take place at the UK's biggest app-based car-sharing service. Avis Budget Group-owned Zipcar told users it would stop taking new bookings after 31 December as it launches a formal consultation with its 71 employees.

In a note to customers, Zipcar UK general manager James Taylor said that existing reservations would still be honoured over the Christmas period and up to year-end. The move is part of what the company said was a broader initiative to streamline its global operations in an effort to improve financial performance and refocus on long-term sustainability.

Zipcar boasts almost 650,000 members in the UK, making London its biggest market. But despite a large membership base, the company has seen growing financial pressures. Its most recent accounts show revenues fell to £47m last year to 2024, while after-tax losses more than doubled to over £11m. Soaring energy prices, increasing vehicle operating costs, plus the expansion of the London congestion charge have all increased the challenges facing car-sharing companies UK wide.

The move has left sustainable transport advocates concerned. CoMoUK, a national shared mobility charity, said the decision underlines the lack of supportive policy for car clubs and warns that many long-term users may now have to consider private vehicle ownership. The organisation also pointed Zipcar members toward Zipcar alternatives UK including Enterprise Car Club, Hiyacar, Turo, and Getaround.

As Zipcar prepares to exit the market, the company said that paid subscribers would receive refunds for any unused Zipcar membership UK fees extending beyond 31 December. While Zipcar continues to operate in the US and Canada, the loss of Zipcar UK marks a major setback for the growth of shared vehicle services in Britain.