The world's biggest car-sharing company, Zipcar, has announced it will close its entire UK operation, a move that will see its shared vehicle fleet disappear from London's streets by the end of the year.
End of the Road for UK Service
Owned by the American rental giant Avis Budget, Zipcar will stop accepting new bookings via its app after 31 December 2024. The suspension is pending a formal consultation with staff regarding potential redundancies. The UK arm employed 71 people last year, according to its most recent accounts.
In an email to customers, Zipcar UK's General Manager, James Taylor, confirmed the proposal to cease operations. He directed users seeking alternatives to the website of CoMoUK, a national charity championing shared transport.
Policy and Financial Pressures Mount
The closure follows a challenging period for the car-sharing sector and coincides with significant changes to London's Congestion Charge. From January, the daily fee rises and will apply to electric vehicles, including those used by car clubs.
Zipcar would have been liable for the charge—up to £18 per day—on most of its vehicles entering the zone. Industry estimates suggest the new rules could add £1 million annually to car club costs, with Zipcar bearing the brunt as the operator of nearly 3,000 of the UK's 5,300 shared vehicles.
A spokesperson for Mayor Sadiq Khan noted that electric car clubs with dedicated parking bays will receive a 100% discount. However, Richard Dilks, CEO of CoMoUK, called Zipcar's exit a sign of a "failure to have supportive policy". He highlighted that the UK lags behind Europe, with only 0.7 shared cars per 10,000 people, compared to 4.4 in Switzerland.
Broader Impact on Sustainable Transport
The shutdown represents a significant setback for advocates promoting car-sharing as a greener alternative to private ownership, reducing the carbon emissions associated with manufacturing individual vehicles.
Zipcar, founded in 2000 and bought by Avis for $491 million in 2013, will continue operating in the US and Canada. Its UK division reported an £11.7 million loss for 2024. The company has stated it will honour all existing bookings, including over Christmas, and will refund subscribers for periods beyond 31 December.
Dilks warned that the loss of this service could force many of the 328,000 UK car club users counted in March back into private car ownership, undermining progress towards more sustainable urban transport.
