Zipcar, a car rental company, has revealed its intention to cease operations in the UK by the end of the year. The UK general manager, James Taylor, informed customers via email that discussions are underway, and bookings beyond December 31 have been temporarily halted. Taylor stated that Zipcar is initiating formal consultations with its UK staff and proposing to discontinue operations in the country.

Customers who have already reserved a car for Christmas will still be able to proceed with their bookings, while those who have booked a vehicle for the New Year will be contacted by the company. Members with reservations post-December 31 will receive refunds, and cancellation fees will be waived.

Taylor mentioned, “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.”

Although Zipcar, an American firm, did not disclose a specific reason for ending its UK operations, customers in the US can continue to use the service without any disruptions. However, a US membership will be required for access. The UK branch had 71 employees as of the previous year, with reported losses amounting to £5.7 million in 2024 due to reduced customer trips.

Zipcar’s latest accounts highlighted challenges faced by the company, including increased expenses such as electricity and insurance costs, alongside market volatility impacting residual values. The pre-tax loss for 2024 escalated significantly compared to the previous year, primarily due to a revenue decline driven by fewer trips and shorter durations. These issues were attributed to the ongoing cost-of-living crisis affecting consumer spending patterns.