Zipcar, a car rental company, has revealed 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 ongoing, and bookings past December 31 have been put on hold. Taylor stated that Zipcar is initiating formal consultations with its UK staff with the proposal to discontinue operations in the UK.
For customers who have already reserved a vehicle for Christmas, they can still proceed with their hire as scheduled. However, those with bookings for the New Year will be contacted by the company. Members with reservations post-December 31 will receive refunds, and the cancellation fee will be waived.
Taylor mentioned in his message that while the company is planning to halt operations in the UK, customer accounts will remain active until a final decision is reached post-consultation. Zipcar, an American company, provides hourly and extended rentals for cars and vans through a mobile app, offering three membership plans with varying costs.
The reason behind the sudden closure of the 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 closures planned in the States; however, a US membership will be required.
As of the end of last year, the UK operation had 71 employees, as indicated in its latest financial accounts. The company reported a deepening loss of £5.7 million in 2024 due to a decline in customer trips and increased cost pressures throughout the year, including rising electricity and insurance costs.
The accounts, published in October, highlighted the challenging year faced by Zipcar, attributing the significant loss before tax in 2024 to reduced revenue from fewer trips and shorter durations. These changes were influenced by the cost-of-living crisis impacting discretionary spending and demand for services.