Zipcar’s UK general manager James Taylor revealed in an email to customers that the company had temporarily suspended bookings, and formal consultations with employees have started
Car hire firm Zipcar has announced it plans to end UK operations by the end of the year.
UK general manager James Taylor said in an email to customers that consultations are ongoing, but the company has temporarily suspended bookings beyond December 31. He said Zipcar is “proposing to cease the UK operations and have today started formal consultations with our UK employees”.
Mr Taylor said customers who have already booked a car for Christmas will still be able to hire it as expected. However, the company will be in touch with any customers who have booked a vehicle for the New Year. Members with reservations after December 31 will receive a refund, with the cancellation fee waived.
The manager wrote: “I’m writing to let you know that we are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees.
“We will temporarily suspend bookings, pending the outcome of this consultation. This means it will not be possible to make any new bookings beyond 31 December, 2025, pending the outcome of the consultation.”
He added: “Although we propose to cease operations in the UK, your account will remain open until the final decision is made following the consultation process. This means you’re still able to use Zipcars until 31st December 2025.”
Zipcar, an American company, offers by-the-hour rentals as well as longer lets for cars and vans through a mobile app. The company offers three membership plans: a basic one with no monthly cost, a smart plan which costs £6 per month and a plus option costing £15 per month.
The car hire firm didn’t reveal a reason for the abrupt closure of its UK operations. Customers wishing to use Zipcar in the US can continue doing so as there are no plans to close any operations in the States – but you will need to have a US membership to use it there.
The UK operation had 71 employees at the end of last year, according to its most recently filed accounts. Accounts showed that the van and car hire firm saw losses deepen to £5.7 million in 2024 after a decrease in customer trips.
In its accounts, published in October, Zipcar said it had “faced increased cost pressures throughout the year with rising electricity and insurance costs, along with a volatile market for residual values, further contributing to what has been a challenging year.” It added: “The loss before tax for the year ended 31 December 2024 increased significantly by £4,985,000 compared to the previous year.
“This was primarily driven by a £3,950,000 decline in revenue, resulting from fewer trips and shorter average trip durations compared to 2023. These changes reflect the ongoing impact of the cost-of-living crisis, which continues to suppress demand for discretionary spending.”
