Zipcar is closing its UK operations by the end of 2025, ceasing new bookings after December 31st. The car sharing company, popular for its per-minute, hourly, and daily rentals, informed customers of its decision and initiated a consultation with employees. Existing bookings for Christmas will be honored, but those extending into the new year will be addressed individually, with refunds and waived cancellation fees for members with reservations beyond the closing date.
The company's financial performance in the year ending December 31, 2024, showed a significant increase in pre-tax losses, rising from £364,000 to £11.6 million. This was attributed to a substantial decline in revenue, caused by fewer trips and shorter average trip durations. Zipcar cited the ongoing impact of the cost-of-living crisis suppressing discretionary spending, as well as rising electricity and insurance costs, as contributing factors to the downturn.
No reasons for the closure were explicitly provided by Zipcar beyond the financial challenges. Customers with active memberships beyond December 31st will receive a pro-rated refund for the remaining plan period once the employee consultation concludes. Zipcar's operations in the US will continue unaffected, though UK members will require a separate US membership to use the service there.