Zipcar to Close UK Operations Amid Challenges in London's Car-Sharing Market
Zipcar will close its UK operations from 1 January 2026, subject to consultation with its 71 UK employees. The closure is part of Avis Budget's broader strategy to streamline international operations.
Historically, Zipcar held a near-monopoly in London car sharing. UK car club membership stood at 0.7 per 10,000 people, with Zipcar accounting for over half of that figure. Zipcar UK generated revenues of £47m but faced an £11.7m loss in 2024. Earlier in 2024, the company exited Oxford, Cambridge, and Bristol to focus solely on London.
London presents unique challenges for car-sharing services, including a fragmented regulatory environment across its 33 boroughs and costs related to parking and congestion charges for electric vehicles entering the zone. For example, in Kensington and Chelsea, electric vehicle parking permits cost £63 per year, while floating car club permits cost £1,110 annually and petrol/diesel vehicle permits cost £2,217, highlighting significant cost disparities for car clubs.
Outside London, competitors like Co Wheels have experienced more success. Industry experts call for central leadership across boroughs to better support car clubs. The Mayor's office acknowledges that car clubs could play an important role in reducing private car ownership in the city.
In a broader European context, the UK lags behind countries such as Germany, which implemented a national car-sharing framework in 2017 resulting in about 5.4 shared cars per 10,000 people. The UK's rate remains at 0.7, with France at 2.1 and Belgium at 6.3 shared cars per 10,000 people. Competitors in the UK market include fleet operators like GreenMobility, Free2Move, Miles Mobility, Poppy, and Mobilize, as well as peer-to-peer platforms such as Hiyacar and Getaround. The US-based car-sharing platform Turo is considering entering the UK market to seize growth opportunities in London.
The closure of Zipcar's UK operations will have real-world impacts on community groups such as Rotherhithe Community Kitchen and the Felix Project, which rely on Zipcar vehicles for deliveries. This change threatens logistics and meal distribution operations during the January transition period.
