In a major blow to the UK's car-sharing market, Zipcar has confirmed it is shutting down all of its operations in the country effective today, 31 December 2025. The sudden closure puts 71 jobs at immediate risk.
Formal Consultation and Service Suspension
The car rental giant, part of the Avis Budget Group, began a formal consultation with its UK employees earlier this month. In a message signed by James Taylor, General Manager of Zipcar UK, customers were informed that the company was "proposing to cease the UK operations."
As part of this process, all new bookings have been suspended beyond the 31 December deadline, pending the outcome of the consultation. However, existing members were able to use vehicles until the final day of the year.
Refunds and Customer Guidance
Zipcar has moved to reassure customers financially impacted by the decision. The company confirmed that any subscription plans extending into 2026 will be refunded on a pro-rata basis.
For members seeking alternative services, Zipcar directed them to the national charity for shared transport, CoMoUK. Customers who encounter issues with refunds are advised to contact Zipcar's Help Centre initially, followed by their payment provider for a chargeback, or Trading Standards and Citizens Advice.
Strategic Exit to "Streamline Operations"
A spokesperson for the Avis Budget Group explained the rationale behind the withdrawal. The decision forms part of a broader transformation across its international business, aimed at streamlining operations and improving financial returns.
"We are taking deliberate steps to streamline operations, improve returns, and position the company for long-term sustainability and growth," the spokesperson told Fleet World. They emphasised that all other global markets for Zipcar remain fully operational and unaffected by the UK exit.
The closure marks a significant shift in the UK's urban mobility landscape, leaving a gap for the thousands of members who relied on the service for flexible, short-term vehicle access.
