Zipcar confirms plans to cease UK operations with 650,000 drivers impacted

It has now confirmed that Zipcar will end its operations in the UK following a formal consultation with its employees.

Drivers will have their accounts closed within 30 days, with Zipcar disabling the ability to make any new bookings.

However, accounts will remain open until February 16, 2026, in accordance with clause 7.5 of its member terms.

Motorists will be entitled to a pro-rated refund for any remaining period of their plan or subscription, from December 31, 2025, onwards.

In an email to customers, Zipcar said it aims to process any refunds to impacted drivers before the end of January.

Drivers impacted by the closure will not need to take any action, as Zipcar will process the refunds automatically. The company will confirm with drivers when this has been completed.

In its closure announcement, Zipcar pointed customers in the direction of the Collaborative Mobility UK (CoMoUK) charity, which includes details of other car-sharing options.

Zipcar announced in 2024 that it was suspending its services in Oxford, Cambridge and Bristol to support its 550,000 members in London, with 650,000 customers in total across the country.

A further 12,000 companies made use of a Zipcar business account, enabling them to make use of discounts, account support and other benefits.

Company accounts for 2024 revealed a drop in revenue from £53million to £47million, with the "cost of living crisis" cited as a reason for falling demand.

Given its large fleet of electric vehicles in the capital, Zipcar was likely to have been hammered with huge costs from the new Congestion Charge pricing structure.

Transport for London and Mayor Sir Sadiq Khan unveiled new changes to hike the daily rate of driving in central London from £15 to £18.

Electric vehicles were also targeted by the new rules, with the total exemption from the charge being lifted and a new Cleaner Vehicle Discount worth 25 per cent being installed.

With more than 1,000 electric vehicles operated by Zipcar on London's roads, the company and its customers would have faced enormous daily charges.

Other car-sharing companies had targeted Zipcar's UK closure statement in December with adverts on the London Underground network, including Turo, which began advertising just 48 hours after the announcement.

A spokesperson for the brand said: "Looking to put the power BACK in Londoners hands, Turo is helping both car owners and car -needers!

"Londoners can rent their cars out to their neighbours, and make money from their idle cars during the week, putting the money back into Londoners' pockets and not Zipcars!"