Car-sharing platform Zipcar has said it will close its UK operations at the end of the year.
The US-based company, owned by car rental giant Avis Budget, told customers it will temporarily suspend new bookings after December 31, pending the outcome of a consultation with its 71 staff.
In an email to members, UK boss James Taylor said the company had started a formal consultation with employees and bookings due to be finalized at the end of the month were being met.
ZipCar UK and Avis Budget have been contacted for comment.
The company has around 650,000 members in the UK who rent cars by the hour or day from an app and collect the vehicles from parking spaces.
Zipcar closed its operations in Oxford, Cambridge and Bristol last year to focus on its core London market, where it has more than 550,000 members.
In its latest company accounts for 2024, Zipcar blamed the “cost of living crisis”, which was affecting UK customers, for revenue falling to £47m from £53m the previous year, while its after-tax losses had widened to £11.6m.
According to the same accounts, Zipcar membership fees cover the cost of refueling or charging the vehicle, and as energy costs continued to rise last year, this has increased financial pressures on the company.
