Sharing economy

Zipcar closes its doors in the UK: goodbye car sharing

US giant Avis Budget suspends operations of its car rental platform as of 31 December: falling revenues and rising losses

2 December 2025

2' min read

Translated by AI

Versione italiana

Key points

Avis Budget shareholder
Strategy
Goodbye Oxford and Cambridge

2' min read

Translated by AI

Versione italiana

The car rental platform Zipcar announced the closure of its UK operations by the end of the year.

Avis Budget shareholder

The US company, owned by car rental giant Avis Budget, informed customers that it would temporarily suspend new bookings after 31 December, pending the outcome of a consultation with its 71 employees.

In an email to shareholders, the UK manager, James Taylor, stated that the company had initiated a formal consultation with employees and that bookings due by the end of the month would be honoured.

Strategy

An Avis Budget spokesperson confirmed the intention to close Zipcar in the UK, but said that 'all other markets remain unaffected'. Zipcar members will still be able to use the fleet during the holiday season and until 31 December, he said.

The company has around 650,000 members in the UK who rent cars by the hour or by the day via an app and collect vehicles from car parks, making it the largest car sharing operator in the UK.

An Avis Budget spokesperson said the decision to cease operations in the UK from 2026 was part of a plan 'to streamline operations, improve returns and position the company for sustainability and long-term growth'.

Goodbye Oxford and Cambridge

Zipcar, as reported by the BBC, had closed its operations in Oxford, Cambridge and Bristol last year to focus on its core market, London, where it has over 550,000 subscribers.

In its latest company financial statements for 2024, Zipcar attributed the cost-of-living crisis, which was affecting UK customers, to the drop in revenues to £47 million from £53 million the previous year, while its losses after tax had increased to £11.6 million.

According to the same accounts, Zipcar's membership fees cover the cost of refuelling or recharging the vehicle and, as energy costs continued to rise last year, this increased the financial pressure on the company.

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