Zipcar, a car rental company, has disclosed its intention to cease operations in the UK by the end of this year. The UK general manager, James Taylor, informed customers via email that discussions are underway, with bookings currently halted beyond December 31. Taylor stated that Zipcar is initiating formal consultations with its UK staff, proposing to discontinue operations in the country.
For customers who have already reserved a car for Christmas, the service will proceed as planned. However, those who have booked a vehicle for the New Year will be contacted by the company. Members holding reservations after December 31 will receive a refund without any cancellation charges.
Taylor emphasized in the email that while the UK operations are slated for closure, user accounts will remain active until a final decision is reached post-consultation. Zipcar, an American company, provides hourly and extended rentals for both cars and vans through a mobile application. The company offers three membership options, including a basic plan with no monthly fee, a smart plan at £6 per month, and a plus plan at £15 per month.
The reason behind the sudden discontinuation of UK operations was not disclosed by the car hire firm. Customers interested in using Zipcar in the US can continue to do so as there are no plans to shut down operations in the States. However, a US membership will be required for access.
According to the company’s most recent accounts, the UK branch had 71 employees by the end of the previous year. The accounts revealed that Zipcar experienced deepening losses amounting to £5.7 million in 2024 following a decrease in customer trips. The published accounts in October highlighted the challenges faced by Zipcar, citing increased expenses such as electricity and insurance costs, alongside market volatility affecting residual values. The loss before tax for the year 2024 rose significantly compared to the previous year, mainly due to decreased revenue influenced by reduced trips and duration, reflecting the ongoing impact of the cost-of-living crisis on consumer spending.
Readers can receive money-saving tips and exclusive offers by subscribing to the Mirror Money newsletter.