In a significant blow to the UK's car-sharing market, the American firm Zipcar has announced plans to wind down its operations in the country by the close of 2025.
Formal Consultation Begins for UK Workforce
The company confirmed the move in a communication to customers on Monday, 1st December 2025. James Taylor, the General Manager of Zipcar UK, stated that a formal consultation with employees has been initiated, which could result in the cessation of its British services.
According to its most recent accounts, the UK operation employed 71 people at the end of the previous year, all of whom are now part of this consultation process. The firm emphasised that no final decision will be confirmed until this employee consultation concludes.
Service Suspension and Customer Impact
For existing members, the service will continue to be available throughout the Christmas period. However, new bookings will be temporarily suspended from 31st December 2025, pending the outcome of the consultation.
"This means it will not be possible to make any new bookings beyond December 31 2025," James Taylor explained in his message. He added that customer accounts would remain active until the company's final decision is reached, ensuring members can use pre-booked vehicles.
Financial Troubles Behind the Decision
The proposal follows a period of deepening financial difficulty for the van and car hire provider. Filed accounts reveal that losses widened to £5.7 million in 2024, a downturn attributed to a marked decrease in customer trips.
This financial strain appears to be the driving force behind the strategic decision to potentially exit the UK market, leaving a notable gap in the urban transport landscape for cities like London, where car-sharing schemes have grown in popularity.
