Car-sharing firm Zipcar has announced it will permanently halt all its services in the United Kingdom, a decision that directly affects its vast community of approximately 650,000 members.
Formal Consultation and Final Decision
The US-based company, which employed 71 staff in the UK at the close of 2024, initiated a formal consultation process with its workforce last month. This move preceded the final confirmation delivered to customers on Friday, 16 January 2026.
In a direct email to its user base, Zipcar stated, "we can now confirm that Zipcar will cease operating in the UK." The communication served as the official 30-day notice required under the member terms, signalling the imminent closure of all customer accounts.
Timeline for Members and Refunds
All new bookings through Zipcar UK are now suspended. However, existing accounts will remain accessible until 16 February 2026. The company has assured customers that they will be entitled to a pro-rated refund for any unused portion of their current plans or subscriptions, calculated from the start of January 2026.
This refund process will be handled automatically, requiring no action from users. The decision follows an earlier alert on 1 December, when Zipcar informed UK customers of a planned temporary suspension of new bookings at the turn of the year, which has now become a permanent cessation.
Financial Background and Market Impact
The exit from the UK market comes after the van and car hire firm reported deepening losses. Company accounts revealed that Zipcar's losses widened to £5.7 million in 2024, a figure attributed to a significant decrease in customer trips.
This closure marks a major shift in the UK's car-sharing landscape, leaving a substantial number of drivers to seek alternative mobility solutions. The move underscores the challenging economic conditions facing the shared transport sector.
