Car-sharing platform Zipcar has confirmed it will cease its UK operations within weeks, impacting approximately 650,000 drivers. The US-based company, owned by Avis Budget, announced the proposed exit in December 2025, and following a formal consultation with its 71 employees, the decision has been finalised.
Customers will have their accounts deactivated in 30 days, with no new bookings permitted. In an email to members, general manager James Taylor stated that accounts would remain open until 16 February 2026, and urged users to explore other car-sharing options via the charity CoMoUK's website.
Zipcar had previously closed operations in Oxford and Cambridge to focus on London, where it served 550,000 members. However, the company attributed its departure to the cost-of-living crisis, which saw revenue fall by £3 million to £47 million and after-tax losses widen to £11.6 million. Rising energy prices also added to financial pressures.
Online start-up Turo, described as the 'Airbnb for cars', is now targeting Zipcar's former customers, offering Londoners the chance to rent out their vehicles for an average of £400 a month. Despite last-minute offers of free parking permits from London mayor Sadiq Khan, Zipcar has chosen to leave the UK market.
