London: Zipcar, the world’s largest car-sharing company, will shut down its UK operations at the end of this year, ending access to its shared fleet across London.
The company, owned by US rental giant Avis Budget, said it will stop new bookings after 31 December while it begins a formal consultation process with staff. Zipcar UK currently employs 71 people, according to its latest filings.
In an email to customers, James Taylor, General Manager of Zipcar UK, stated that the firm is proposing to cease its UK services and has initiated discussions with its employees. He encouraged users to explore other shared transport options through CoMoUK, a national charity that supports car-sharing and sustainable transport models.
The decision marks a major setback for the UK’s car-sharing movement, which has been promoted as a greener alternative to private car ownership. Several smaller car-sharing clubs also relied on Zipcar’s fleet-sharing model, making the closure even more disruptive.
Zipcar’s exit comes after a difficult period for the car-sharing sector. Earlier this year, it emerged that Avis Budget had quietly cut the valuation of the Zipcar business amid falling revenues in key markets. Zipcar UK reported an £11.7m loss in 2024, reflecting the wider financial pressures facing companies that operate their own fleets. High maintenance and operational costs across scattered city locations have made profitability tough to achieve.
During the pandemic, app-based car-sharing surged in popularity as companies like Zipcar, Enterprise Car Club and Share Now offered convenient, short-term rentals, while platforms such as Hiyacar, Turo and Getaround enabled people to rent vehicles from neighbours. Yet despite rising interest, fleet-based operators have struggled to maintain sustainable business models.
Zipcar had played a pioneering role in London, especially with its flexible ‘no fixed parking’ model that allowed users to drop off vehicles in residents’ bays across central areas. Advocates say car-sharing reduces carbon emissions by lowering the number of vehicles required for each household, but the economics of running large fleets have remained challenging.
The company confirmed it will honour all existing bookings, including over Christmas. Users with reservations extending into the new year will be contacted directly, and paying subscribers will receive refunds for periods beyond 31 December.
