Zipcar, a car rental company, has revealed its intention to cease its operations in the UK by the end of this year. General manager James Taylor informed customers via email that discussions are in progress, and the company has stopped accepting bookings beyond December 31. The proposal includes formal consultations with UK employees.
Existing customers who have reserved a car for Christmas will still be able to proceed with their bookings as planned. However, individuals who have booked a vehicle for the New Year will be contacted by the company. Refunds will be issued to members with reservations after December 31, and cancellation fees will be waived.
Taylor emphasized that while Zipcar plans to halt operations in the UK, user accounts will remain active until a final decision is reached post-consultation. This means members can continue utilizing Zipcars until December 31, 2025.
Zipcar, an American corporation, provides hourly and extended rentals for cars and vans through a mobile application. The company offers three membership options: a complimentary basic plan, a smart plan priced at £6 monthly, and a plus plan costing £15 per month.
The specific reason for the sudden closure of UK operations was not disclosed by the car rental company. Customers interested in using Zipcar in the United States can still do so, as there are no plans to close any operations in the country. However, a US membership will be required for access.
As per the latest accounts filed, the UK branch had 71 employees by the conclusion of the previous year. Financial records indicated that the van and car hire business experienced a deepening loss of £5.7 million in 2024 due to reduced customer trips.
In the published accounts from October, Zipcar cited increased cost pressures, including elevated electricity and insurance expenses, alongside a volatile market affecting residual values. The pre-tax loss for the year ended December 31, 2024, surged by £4,985,000 compared to the prior year primarily due to a revenue decline of £3,950,000. This drop was attributed to fewer trips and shorter durations, reflecting the ongoing repercussions of the cost-of-living crisis dampening discretionary spending.
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