Car-sharing provider Zipcar has revealed proposals to wind down its entire UK business by the close of the year, placing 71 jobs at risk. The US-based firm confirmed it has initiated a formal consultation with its workforce regarding the potential closure.
Consultation Begins, Future Bookings Halted
In a significant move, the company stated it will temporarily suspend all new bookings made for dates after 31st December 2025. This suspension is pending the outcome of the employee consultation process. The decision follows the firm's latest accounts, which revealed deepening losses.
James Taylor, the general manager of Zipcar UK, directly addressed customers. "I'm writing to let you know that we are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees," he said. He emphasised that the ability to make new bookings for 2026 and beyond is now on hold until the consultation concludes.
Festive Period Unaffected for Existing Customers
Despite the proposed shutdown, Zipcar has assured its members that the upcoming Christmas period will not be disrupted. Customers can continue to use the service and their existing bookings up to and including 31st December. This guarantees that holiday travel plans reliant on Zipcar vehicles will remain intact.
Taylor confirmed that all customer accounts will stay active until a final decision is reached at the end of the consultation. The company's financial filings showed a challenging year, with losses widening to £5.7 million in 2024, attributed to a decrease in customer trips.
What Happens Next?
The future of Zipcar's presence in the UK now hinges on the ongoing talks with employees. The formal consultation period will determine the final outcome for the operation, which launched its car-sharing service in the UK over a decade ago. The move marks a major retreat for the brand from the British market, where it once aimed to revolutionise urban transport.
Sky News has reached out to Zipcar for further comment on the closure proposals and the factors behind the decision to exit the UK market.
