Dec 3, 2025
Zipcar Withdraws from the UK as London Readies New EV Congestion Charges
Zipcar has concluded its operations in the UK after its parent company in the US decided to shut down activities ahead of new London Congestion Charges for electric vehicles.
The car rental service has initiated formal consultations with UK employees and will halt new bookings after the end of this year, as stated by the company, which is expected to result in numerous job losses.
In a message to customers, Zipcar UK general manager James Taylor announced, “I’m reaching out to inform you that we are planning to end Zipcar's operations in the UK and have commenced formal consultations with our UK staff.
"We will temporarily pause bookings while we await the consultation's outcome.
"This means no new bookings will be accepted beyond December 31, 2025, pending the consultation results.”
Zipcar's financial losses deepened as sales declined.
Losses for Zipcar soared to £11.7 million in 2024, a significant increase from £364,000 the previous year, while revenue dropped from £51 million to £47 million.
“External cost pressures have continued to adversely affect the business. Although fuel prices saw some improvement, electricity costs remained elevated throughout 2024,” the company noted in its recently released accounts.
“This had a significant impact due to the size of the electric fleet and the fact that fuel costs are factored into rental prices.
“Challenges in the resale market also resulted in higher expenses. Additionally, year-on-year increases in motor insurance costs added further financial pressure.”
Zipcar did not specify the reasons for exiting the UK market, but the operational suspension aligns with London Mayor Sadiq Khan's decision to extend the Congestion Charge to electric vehicles, which would significantly impact the company’s electric fleet.
This new charge, which previously exempted EVs, will require drivers to pay £13.50 daily starting next year.
In 2024, Zipcar UK employed 71 full-time staff, a decrease from 92 in the prior year.
The company was established in Cambridge, Massachusetts, and was publicly traded on the Nasdaq before being acquired by Avis for $500 million.
The car rental service has initiated formal consultations with UK employees and will halt new bookings after the end of this year, as stated by the company, which is expected to result in numerous job losses.
In a message to customers, Zipcar UK general manager James Taylor announced, “I’m reaching out to inform you that we are planning to end Zipcar's operations in the UK and have commenced formal consultations with our UK staff.
"We will temporarily pause bookings while we await the consultation's outcome.
"This means no new bookings will be accepted beyond December 31, 2025, pending the consultation results.”
Zipcar's financial losses deepened as sales declined.
Losses for Zipcar soared to £11.7 million in 2024, a significant increase from £364,000 the previous year, while revenue dropped from £51 million to £47 million.
“External cost pressures have continued to adversely affect the business. Although fuel prices saw some improvement, electricity costs remained elevated throughout 2024,” the company noted in its recently released accounts.
“This had a significant impact due to the size of the electric fleet and the fact that fuel costs are factored into rental prices.
“Challenges in the resale market also resulted in higher expenses. Additionally, year-on-year increases in motor insurance costs added further financial pressure.”
Zipcar did not specify the reasons for exiting the UK market, but the operational suspension aligns with London Mayor Sadiq Khan's decision to extend the Congestion Charge to electric vehicles, which would significantly impact the company’s electric fleet.
This new charge, which previously exempted EVs, will require drivers to pay £13.50 daily starting next year.
In 2024, Zipcar UK employed 71 full-time staff, a decrease from 92 in the prior year.
The company was established in Cambridge, Massachusetts, and was publicly traded on the Nasdaq before being acquired by Avis for $500 million.