London has lost a "catastrophic" 89% of its car club vehicles since Zipcar ended its service in late 2025, with only 330 vehicles now available for rent, according to data from Collaborative Mobility (CoMoUK), a charity. The sharp decline has pushed former users to consider buying or leasing private cars.
Zipcar's withdrawal leaves gap in London's car-sharing market
Zipcar, the US-based car club operator, dominated London's market before its shock decision to pull out in December 2025. The company cited ongoing losses, leaving a void that has yet to be filled. Six months after Zipcar's exit, the number of car club vehicles in the capital dropped from 2,800 to just 330. Of those, only about 100 have been added since the end of 2025.
Car clubs allow drivers to use vehicles parked around a city, booking and unlocking them via apps. They reduce the overall need for private cars, cutting carbon emissions and saving ownership costs. However, clubs in some locations have struggled to achieve profitability.
Former users turn to private car ownership
A survey by CoMoUK of 216 former Zipcar users found that 9% had already bought or leased a vehicle to replace the car club, while 55% said they were considering it. Richard Dilks, chief executive of CoMoUK, described the situation as "catastrophic" for a sector that is thriving across Europe.
"We're massively down overall," Dilks said. "That's a catastrophic result for a sector that is doing well across Europe."
Barriers to expansion in London
Free2move (owned by Stellantis), Enterprise Car Club, and British company Co Wheels have expressed interest in expanding in London, but none have announced concrete plans to significantly increase vehicle numbers. Peer-to-peer services like Hiyacar and Turo have seen increased interest but rely on private owners listing their cars.
Dilks noted that London should be one of Europe's most attractive markets for car-sharing, given its extensive public transport and the fact that 42% of the population does not own a car. However, the lack of centralized rules and processes across London's 32 boroughs has hindered growth. Some boroughs have reduced fees and simplified licensing, but the inconsistency makes it onerous for companies to operate citywide.
"If there's viability, then there should be a queue of people knocking on the door," Dilks said. "But there's not, and there's not one door."
Comparison with other shared transport
Other forms of shared transport, such as dockless electric bicycles from Lime and Forest, are managed centrally by Transport for London (TfL). A decade ago, TfL aimed to have one million car club users by 2025, but the current number of vehicles is less than a fifth of what it was then.
Zipcar was founded in the US in 2000 and merged with UK equivalent Streetcar in 2010. Its current owner, Avis Budget, decided to exit the loss-making London operation, retaining only its American operations.
