Zipcar, a car rental company, has revealed its decision to terminate operations in the UK by the year’s end. The UK general manager, James Taylor, communicated to customers via email that ongoing consultations are being held, with bookings currently halted past December 31. Taylor stated that Zipcar is initiating formal discussions with its UK employees to propose the cessation of operations in the UK.
Existing customers who have booked a car for Christmas will still be able to proceed with their reservations. However, those who have booked a vehicle for the New Year will be contacted by the company. Refunds will be issued to members with reservations after December 31, and the cancellation fee will be waived.
Taylor mentioned in the communication that Zipcar’s UK operations are under consideration for closure, and as a result, new bookings beyond December 31, 2025, are temporarily suspended pending the consultation outcome. Account access will be maintained until the final decision is reached post-consultation, allowing members to continue utilizing Zipcars until December 31, 2025.
Zipcar, originating from the US, provides hourly and extended rentals for cars and vans via a mobile app, offering three membership options: a basic plan with no monthly fee, a smart plan for £6 per month, and a plus plan priced at £15 per month.
The reason for the sudden closure of Zipcar’s UK operations was not disclosed. However, customers interested in using Zipcar in the US can still do so, as there are no intentions to close any US operations, requiring a US membership for access.
As of the end of last year, the UK branch had 71 employees, with reported losses escalating to £5.7 million in 2024 due to reduced customer trips. Zipcar’s accounts from October revealed challenges faced throughout the year, including escalating electricity and insurance costs, alongside an uncertain market affecting residual values, leading to a tough financial year.
The pre-tax loss for the year ending December 31, 2024, surged significantly by £4,985,000 compared to the previous year, attributed to a £3,950,000 revenue decline resulting from decreased trips and shorter durations, reflecting the ongoing impact of the cost-of-living crisis on consumer demand.