American car sharing firm Zipcar has paused bookings in London while it considers closing its UK business.
In a statement sent to users, Zipcar UK general manager James Taylor said it won't be possible to book a car for use after 31 December 2025, pending the result of a consultation with employees.
Customers with existing bookings will be able to use the cars or vans in question until that date.
According to a statement published by Companies House, Zipcar UK posted an £11.7 million loss for the 2024 calendar year, a significant increase on its £364,000 loss for 2023.
In Taylor's statement, he attributed the mounting losses to high electricity prices, given “the size of the electric fleet and the fact that fuel costs are included in the cost of the rental”.
Zipcar also struggled to recoup money from sales of cars leaving its fleet, as “resale market values continued to be challenging, which drove higher costs”.
The rising cost of car insurance, which is included in Zipcar's rental fees, “also [places] further pressures on costs”, said Taylor.
That pressure pushed the company to exit Bristol, Cambridge and Oxford to focus solely on London.
Zipcar has yet to confirm why it's considering exiting the UK, but it's possible that it's linked to the application of the London Congestion Charge to EVs from 2 January 2026.
EVs are currently exempt but from the new year will be charged £13.50 per day to drive in the Congestion Charge zone of central London.
That would significantly increase the cost to Zipcar users who drive in the centre of the capital and place further cost pressures on the firm – potentially to the point of its business no longer being viable.
Add your comment