Zipcar to exit UK market by year-end amid financial pressures

Zipcar to exit UK market by year-end amid financial pressures

Zipcar, the US-based car-sharing platform owned by Avis Budget Group, announced on Tuesday it will cease operations in the UK by 31 December, citing financial challenges and a strategic shift to streamline global operations.

Customer and staff impact

In an email to members, UK managing director James Taylor confirmed the company has initiated a formal consultation with its 71 employees. While new bookings will be suspended after 31 December, existing reservations will be honored through the end of the month, including over the Christmas period.

Avis Budget Group, Zipcar's parent company, stated that the closure applies exclusively to the UK market, with operations in all other regions remaining unaffected.

Financial struggles and market contraction

Zipcar's decision follows a year of declining revenues and mounting losses. According to its 2024 financial reports, revenue dropped to £47 million from £53 million in 2023, while after-tax losses expanded to £11.6 million. The company attributed the downturn to the UK's cost-of-living crisis, which reduced customer spending power.

Rising energy costs further strained finances, as membership fees-covering fuel and charging expenses-failed to offset operational pressures. The platform had already scaled back operations in 2024, exiting Oxford, Cambridge, and Bristol to focus on its core London market, where it serves over 550,000 of its 650,000 UK members.

Regulatory pressures and long-term strategy

Avis Budget Group framed the closure as part of a broader plan to "improve returns and position the company for long-term sustainability." While not explicitly cited in Zipcar's member communications, the upcoming expansion of London's congestion charge-set to include electric vehicles from 26 December-could add to the company's financial burdens.

The decision to cease UK operations reflects our commitment to optimizing resources and focusing on markets where we see stronger growth potential.

Avis Budget Group spokesperson

Next steps for members

Zipcar's UK fleet will remain available for bookings through 31 December. The company has not yet detailed refund policies or alternative arrangements for members with active subscriptions beyond the shutdown date.