Zipcar to End UK Operations Amid Challenging Market Conditions
Zipcar will shut its UK operations and end access to its London fleet from 1 January 2026, as announced on 4 December 2025. The closure is part of a broader transformation by its parent company, Avis Budget Group, aiming to streamline operations across its international business.
In 2024, Zipcar UK generated revenues of £47 million but reported a loss of £11.7 million. The company accounted for more than half of the UK car-sharing activity, although the country's market density remains low at about 0.7 shared cars per 10,000 people. Zipcar had previously exited Oxford, Cambridge, and Bristol to focus solely on London.
Barriers specific to London include a complex patchwork of regulations across the city's 33 boroughs. Electric vehicles have become subject to the congestion charge, and parking-permit costs vary greatly—from around £63 in Kensington and Chelsea for residents to £1,110 for floating car club vehicles, and £2,217 for petrol/diesel cars. While Co Wheels has found success outside London, analysts call for centralized leadership to create a unified framework for car clubs. The mayor's office has highlighted that car clubs could contribute to reducing private car ownership.
Across Europe, car sharing is expanding with higher densities: Germany has 5.4 shared cars per 10,000 people, France 2.1, and Belgium 6.3. Germany introduced a national framework in 2017 to support this growth. The UK continues to lag, partly due to the fragmented regulations.
Industry observers anticipate that Zipcar's exit will not mark the end of car sharing in Britain. New entrants such as Turo are reportedly considering expansion into London. Additionally, UK car owners can earn around £400 per month by renting their vehicles, influencing market dynamics.
The closure will also disrupt community initiatives like the Rotherhithe Community Kitchen, which depends on Zipcar for delivering meals to pensioners and vulnerable residents, presenting logistical challenges going forward.
