Zipcar to close their UK operations as the congestion charge is set to start in London and the US firm will no longer accept any more bookings by the end of the year.
The car sharing company employs 71 people in the UK and has launched a consultation with staff.
This will be a big blow for people in London who rely on the car sharing scheme, but Zipcar has been hit with higher than expected costs.
Zipcar did not provide a reason as to why they are closing their UK operations, but with higher taxes, employers national insurance costs and the congestion charge rising to £13.50 for electric vehicles this is a recipe for a financial disaster for small businesses.
Zipcar (UK) said, “External cost pressures continued to negatively impact the company. Whilst there was some improvement in fuel prices, electricity costs remained high throughout 2024.
“Resale market values continued to be challenging, which also drove higher costs. Year on year increases in the cost of motor insurance also placed further pressures on costs.”
Zipcar UK general manager James Taylor said: “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.
“This means it will not be possible to make any new bookings beyond December 31 2025, pending the outcome of the consultation.”
Richard Dilks, chief executive of shared transport charity CoMoUK, said: “Car clubs are making a huge contribution to reducing car ownership and mileage, so if this proposal is confirmed it will be a major blow.
“Every car club vehicle replaces 31 private cars in London, freeing up space, cutting congestion and improving air quality for everyone. We need coherent car and lift sharing plans across London, as this news clearly demonstrates.
“It would also have a significant impact beyond London, harming attempts to provide more low cost access to EVs and support public and active transport.”
Zak Bond, Campaign Manager, Clean Cities UK said: “We’re very disappointed to see Zipcar withdrawing from the UK, a decision that represents a real setback for the electrification of transport in our urban centres.
“Electric car clubs can offer a scalable, cost-effective and flexible way for Londoners and local businesses to access electric vehicles exactly when they need them. We know that car clubs help give people the confidence to live without owning a private car, reducing both costs and congestion.
“At a time when cities are working hard to cut emissions and expand sustainable travel options, the loss of a major electric car-sharing operator is deeply concerning.”
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