Zipcar is preparing to withdraw from the UK after its US owner decided to wind down operations ahead of the introduction of London’s expanded Congestion Charge, which will apply to electric vehicles for the first time from next year.
The car-sharing company has begun a formal consultation with its UK workforce and has suspended future bookings, a move expected to result in significant job losses. Zipcar will not accept any new reservations beyond 31 December 2025, pending the outcome of the consultation.
In an email sent to customers, James Taylor, Zipcar UK’s general manager, wrote: “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. We will temporarily suspend bookings, pending the outcome of this consultation.”
The decision follows a difficult year for the company. Zipcar’s UK losses ballooned to £11.7 million in 2024, compared with just £364,000 the year before. Revenue also declined from £51 million to £47 million.
In its most recent accounts, the company cited “external cost pressures”, including persistently high electricity prices which disproportionately affected its large electric fleet, for which charging costs were bundled into rental pricing. A weak vehicle resale market and rising motor insurance premiums added further financial strain.
Although Zipcar has not explicitly linked its exit to upcoming policy changes, the timing coincides with Sadiq Khan’s decision to extend the Congestion Charge to electric vehicles. From January 2026, EVs will no longer be exempt, meaning Zipcar’s electric fleet would incur a £13.50 daily charge—a shift expected to significantly increase operational costs for the business.
The company employed 71 full-time staff in 2024, down from 92 the previous year.
Founded in Cambridge, Massachusetts, Zipcar became a pioneer of urban car-sharing and was listed on Nasdaq before being acquired by Avis in a $500 million deal. Its UK retreat marks the end of nearly two decades of operations in London, where it once positioned itself as a key alternative to private car ownership.
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Zipcar to shut down UK operations as London prepares new EV Congestion Charge