Zipcar has announced plans to close its operations in the UK by the end of the year, it said today.
The car club, which launched in the US in 2000, told customers it planned to cease its operations and had launched a formal consultation with employees.
In an email to customers, UK general manager James Taylor said it had temporarily suspended bookings, meaning customers will not be able to make any new bookings beyond 31 December 2025, pending the outcome of its consultation.
Closing: In an email to customers, Zipcar plans to cease its operations in London
For customers who have already booked a car for Christmas, bookings will be honoured, but Zipcar said it would be in touch with any customers who have bookings running into the new year.
Members with reservations after 31 December will be refunded, and the cancellation fee will be waived.
The car club had over half a million users in London in 2020 and is a popular option for users who want to hire vehicles by the minute, hour or day, which can be parked across multiple locations.
Zipcar members have the choice of three membership plans: basic, which has no monthly cost, smart and plus, which cost £6/month and £15/month, respectively.
Zipcar said that members who have chosen to cancel will be entitled to a refund ‘depending on your plan type and when you cancel.
‘If your billing ends before 31 December and you’ve cancelled prior to this date, your plan will end in line with the cancellation period.’
If the membership is still active by 31 December, members will receive a pro-rated refund for the remaining period of the plan, once the outcome of the consultation is confirmed.
There are no plans to close any operations in the US, but if you plan to use Zipcar there you will need to have a US membership.
Zipcar did not provide a reason for the abrupt closure of its UK operations.
In its most recent set of accounts for the year ended 31 December 2024, it said losses before tax increased ‘significantly’, from £364,000 to £11.6million.
‘This was primarily driven by a £3,950,000 decline in revenue, resulting from fewer trips and shorter average trip durations compared to 2023.
‘These changes reflect the ongoing impact of the cost-of-living crisis, which continues to suppress demand for discretionary spending.’
It also said it had suffered from rising electricity and insurance costs.
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