Zipcar, a car rental company, has declared its intention to shut down its operations in the United Kingdom by the end of this year.
The UK’s general manager, James Taylor, informed customers via email that discussions are underway, and the company has temporarily halted bookings beyond December 31. Taylor stated that Zipcar is initiating formal consultations with its UK employees and is proposing to discontinue its operations in the UK.
Customers who have reserved a vehicle for Christmas will still be able to proceed with their bookings as planned. However, individuals who have booked a vehicle for the New Year will be contacted by the company. Members with reservations post-December 31 will receive a refund, and the cancellation fee will be waived.
Taylor conveyed, “I’m reaching out to inform you that we are considering discontinuing Zipcar’s operations in the UK and have commenced formal consultations with our UK staff.”
He further stated, “We will pause bookings temporarily until the consultation concludes. Consequently, no new bookings can be made after December 31, 2025, until the consultation process concludes.”
Despite the proposed closure of UK operations, customer accounts will remain active until a final decision is reached following the consultation process, allowing continued use of Zipcars until December 31, 2025.
Zipcar, originating from the United States, provides hourly and extended rentals for both cars and vans through a mobile application. The company offers three membership options: a free basic plan, a £6 per month smart plan, and a £15 per month plus plan.
The specific reason for the sudden cessation of UK operations by the car rental company was not disclosed. Customers interested in using Zipcar in the US can do so as there are no plans to cease operations in the country, but a US membership will be required.
As per its most recent financial records, the UK branch had 71 employees by the end of the previous year. The accounts revealed that the company experienced increased losses amounting to £5.7 million in 2024 following a decline in customer trips.
According to the published accounts in October, Zipcar encountered escalating cost pressures during the year due to rising electricity and insurance expenses, as well as a volatile market for residual values, contributing to a challenging year. The pre-tax loss for the year concluding on December 31, 2024, surged by £4,985,000 compared to the previous year.
This increase was predominantly driven by a £3,950,000 revenue drop resulting from fewer trips and shorter trip durations compared to 2023, reflecting the ongoing impact of the cost-of-living crisis, which has dampened demand for discretionary spending.
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