Zipcar officially confirms it’s closing leaving 650,000 drivers without cars

Car-sharing firm Zipcar has confirmed it is stopping operations in the UK after launching a consultation late last year.

The move will hit the company’s roughly 650,000 drivers across the country.

On December 1, the US-based company told customers in the UK that it planned to suspend new bookings temporarily at the turn of the year.

The business, which had 71 UK employees at the end of 2024, launched a formal consultation with staff as a result.

On Friday, in a fresh email to customers, the business said it ‘can now confirm that Zipcar will cease operating in the UK’.

The company added: “In accordance with clause 7.5 of the member terms, please take this as your written notice that we will formally close your account in 30 days’ time.

‘It’s not possible to make any new bookings with Zipcar UK at this time, but your account will remain open until February 16.’

It added that customers will be entitled to a pro-rated refund for any remaining periods on current plans or subscriptions, from the start of 2026.

Zipcar said this will be done automatically and will not require any action from users.

Accounts showed that the van and car hire firm saw losses deepen to £5.7 million in 2024 after a decrease in customer trips.

Richard Dilks, chief executive of car-sharing advocacy body CoMoUK, said the news was a ‘major’ blow to the 650,000 members – 550,000 of whom were in London – who used it as an alternative to buying a car of their own. 

‘Zipcar’s departure is a major loss, not just for the hundreds of thousands of people who rely on its vehicles as a cheap, convenient and occasional way of travelling, but for London as a whole,’ he said.

‘Ultimately, this episode highlights that a more coherent approach to car sharing across the capital is badly needed, and we will continue to work intensively with boroughs, TfL [Transport for London] and operators on this.’

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