Labour urged to intervene in Zipcar closure as 650,000 drivers risk being forced off roads

It clarified that members would retain access to their accounts for a minimum of 30 days from the date of notice until February 16, 2026.

Zipcar added: "After operating in London for over 15 years, the decision has been made to cease operation of Zipcar UK, and all memberships are hereby terminated in accordance with the existing Zipcar UK membership terms.

"On behalf of all of the Zipcar UK team, we want to extend our sincere thanks to our members who have entrusted us with their business over the years and thank you for being part of our journey."

In its initial closure warning, Zipcar advised customers to visit the Collaborative Mobility UK (CoMoUK) website for further guidance on car-sharing schemes in their local area.

Research from CoMOUK found that every car club vehicle replaces a staggering 31 private cars in the capital, helping to reduce congestion and improve air quality.

Richard Dilks, chief executive of CoMoUK, said the organisation was "hopeful" that other car club operators would fill the gap left by Zipcar to protect sustainable mobility in urban areas.

He added: "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.

"As by far the largest car-sharing operator in the capital, it has made a major contribution to reducing car ownership and mileage and supporting public transport and active travel use, all of which cuts traffic congestion and improves our air quality."

Zipcar had previously suspended services in Oxford, Cambridge and Bristol in 2024, while retaining its services for 550,000 customers in London.

In total, 650,000 UK drivers used Zipcar, while 12,000 companies made use of the service's business account, which provided additional support and discounts.

Toby Poston, chief executive of the British Vehicle Rental and Leasing Association (BVRLA), described Zipcar's closure as a "watershed moment for urban mobility" in the UK.

He highlighted that while London's extensive network of buses, tubes and trams was ideal for commuters, not all people could use the public transport network 100 per cent of the time.

Mr Poston said: "Having an active and accessible car club is proven to reduce car ownership in densely populated areas. Short-term access to suitable vehicles enables people to retain their mobility in a cost-effective and flexible way. The benefits are obvious and backed by data.

"It is therefore a tragedy that policymakers can enthusiastically spend billions and billions of pounds of taxpayers' money on high-speed rail lines or UK Automotive Industrial Strategy but can't muster the collaborative gumption to consistently and constructively support this vital form of urban mobility."

Despite its massive customer base, company accounts for Zipcar revealed a dip in revenue from £53million to £47million, with the "cost of living crisis" blamed as a key factor.

Other car-sharing platforms have already taken steps to address the gap in the market following Zipcar's closure, including Turo.

Advertising boards on the London Underground network have been emblazoned with Turo branding, with drivers encouraged to make money by renting out their cars.

Turo launched the new advertising campaign just hours after Zipcar's initial announcement that it was closing in mid-December last year.