Zipcar UK has announced it is proposing to shut down its entire UK operation, just months after warning that Sadiq Khan’s congestion charge hike would force it to reduce its fleet.
The car-sharing giant, which operates dozens of vehicles across Putney, Roehampton and Southfields, emailed members today to say it has begun formal redundancy consultations with staff and suspended all bookings beyond 31 December 2025.
“We are proposing to cease the UK operations of Zipcar,” wrote James Taylor, General Manager of Zipcar UK.
The same executive struck a very different tone in 2021, when he declared the company was “at a pivotal moment to make urban mobility more responsible, equitable and sustainable.” At that time, Zipcar was expanding its electric vehicle fleet to over 400 cars and had committed to going fully electric by 2025.
That vision now appears to be over.
Congestion charge warnings ignored
The announcement comes after Zipcar repeatedly warned that Transport for London’s proposed congestion charge increases would cripple its business model.
In July, the company told members it would “not be able to simply absorb” the costs of TfL’s plans to raise the charge from £15 to £18 and introduce a new £13.50 daily charge for electric vehicles. “It may lead to fewer electric vehicles and fewer vehicles overall for you to rent,” Zipcar warned.
Until now, Zipcar had only passed on £5 of TfL’s congestion charge to members, absorbing the rest. The new charges would have made that model unsustainable.
The Mayor’s proposals faced unprecedented opposition from Labour colleagues, environmental groups, trade unions and businesses. Industry figures estimated car clubs faced costs of over £1 million annually under the new regime.
CoMoUK’s Richard Dilks warned during the consultation: “It would be utterly baffling if car clubs were treated as private cars under these changes.”
What London loses
According to Zipcar’s own data, every car club vehicle removes 27 privately owned cars from the road. By 2021, nearly 80,000 members had driven a Zipcar electric vehicle, saving 82,000kg of CO2.
For Londoners, car sharing offered significant savings. The average cost of car ownership in outer London is £3,186 per year. Zipcar claimed members could save over £2,765 annually by ditching their own vehicle.
That alternative now faces an uncertain future.
Parent company in crisis
Zipcar’s parent company Avis Budget Group has also faced severe financial pressure. The American rental giant reported a net loss of $1.8 billion for 2024, including a $2.3 billion impairment charge. CEO Joe Ferraro stepped down in June 2025.
Avis acquired Zipcar for $500 million in 2013. In 2019, it closed operations in Brussels, Paris and Barcelona, but chose to focus on the UK and North American markets. Now even London which was once the company’s European stronghold appears to be going.
Wandsworth impact
Wandsworth Council has partnered with Zipcar alongside Enterprise Car Club and Ubeeqo to provide car club vehicles in dedicated bays across the borough. The council has claimed London’s highest car club membership levels.
The closure would leave Enterprise and Ubeeqo as the main alternatives, along with peer-to-peer platforms like Hiyacar and community operator Co-Wheels.
Wandsworth Council has been asked what contingency plans it has and whether it believes the Mayor’s congestion charge policy contributed to the decision. It has yet to respond.
What members should do
Members can continue using Zipcar vehicles until 31 December 2025. For alternatives, the company has suggested CoMoUK at como.org.uk.
