Car-sharing operator Zipcar has announced it is withdrawing from the UK market following a consultation launched towards the end of last year. The decision will affect the firm’s approximately 650,000 motorists nationwide.

On December 1, the American-headquartered company informed British customers it intended to temporarily halt new reservations at the start of the new year. The organisation, which employed 71 staff in the UK at the close of 2024, initiated formal consultation proceedings with its workforce as a consequence.

On Friday, in an updated email to members, the company stated it “can now confirm that Zipcar will cease operating in the UK”.

The firm continued: “In accordance with clause 7.5 of the member terms, please take this as your written notice that we will formally close your account in 30 days’ time. It’s not possible to make any new bookings with Zipcar UK at this time, but your account will remain open until February 16.”

It confirmed that customers will receive a proportionate reimbursement for any outstanding periods on existing plans or subscriptions from the beginning of 2026.

Zipcar indicated this would be processed automatically without requiring any intervention from members. Company records revealed that the vehicle rental business experienced widening losses reaching £5.7 million in 2024 following a decline in customer journeys.