Zipcar to Exit UK as Electric Vehicle Congestion Charge Looms

Zipcar is set to end its operations in the UK after its US parent company decided to withdraw from the market, coinciding with the impending introduction of new London Congestion Charges for electric vehicles.

The car-sharing firm has begun formal consultations with UK staff and will stop accepting new bookings after 31 December 2025. A spokesperson warned that the move could result in job losses for dozens of employees.

In a message to customers, Zipcar UK General Manager James Taylor said:"We are proposing to cease UK operations and have started formal consultation with our staff. Pending the outcome, bookings will be temporarily suspended, meaning no new rentals can be made after the end of the year."

The company’s accounts for 2024 revealed mounting financial pressures, with losses surging to £11.7 million, up from £364,000 the previous year, while revenue fell from £51 million to £47 million. Zipcar cited a combination of high electricity costs, challenging resale values, rising motor insurance premiums, and the scale of its electric fleet as key factors behind the deteriorating results.

Though the firm did not explicitly link its UK exit to London’s policy change, the timing aligns with Mayor Sadiq Khan’s decision to extend the Congestion Charge to electric vehicles from next year. Previously exempt, EV drivers will now face a daily charge of £13.50, a measure expected to significantly impact Zipcar’s largely electric rental fleet.

Zipcar UK employed 71 full-time staff in 2024, down from 92 the previous year. The company, founded in Cambridge, Massachusetts, was listed on Nasdaq before being acquired by Avis for $500 million.