Car sharing firm Zipcar has revealed that it plans to stop all of its UK operations in the New Year in an email to its users.
The company’s UK boss James Taylor says in the email that the company has already started formal consultation with its UK employees over plans to shut down its operations in the company. He also says that bookings will be halted after 31 December 2025. “We will temporarily suspend bookings, pending the outcome of this consultation. This means it will not be possible to make any new bookings beyond 31st December 2025, pending the outcome of the consultation.”
Formal close of the UK business will take place after consultation with the company's employees – there were 71 at the end of 2024 according to the company's most recent accounts filed in October.
Zipcar was founded in the US in 2000, starting in Boston and spreading to other cities across the country. The car sharing initiative was then launched in London in 2007, with locations being added across the UK. In 2013 the company was bought up by rental firm Avis for $500m, and Zipcar continued to expand into new territories.
The company’s model is based around being able to hire cars for an hourly rate from key city centre locations, to enable people who don’t own their own cars to make use of them for short periods. Fuel and insurance is covered as part of the hourly fee, which could be reduced if you signed up for a monthly subscription. Zipcar says that it has more than 1,000 electric cars on the Zipcar fleet, making up over a third of the mix. It also offers van hire and leasing to businesses.
There’s no official information yet as to why the company has decided to stop its UK operation – it’s been active in recent months promoting its business as a sustainable alternative to car ownership and encouraged people to drive Zipcars during the recent tube strikes in London. The company also announced an electric car club pilot in May 2025 in conjunction with Hackney Council to bring more EVs to the borough.
WIth the bulk of its operation based in London, there has already been some speculation that the move could be linked to the increased congestion charge in January 2026, including charges for electric vehicles. Zipcar posted an £11.7m loss in 2024, it revealed in October, blaming lower revenues and the higher cost of electricity.
Zipcars have been available on the streets of London for 18 years 
