Major London car club Zipcar announces UK withdrawal, causing transport concerns

Zipcar, one of the world's largest car-sharing companies, has announced plans to cease its entire UK operation by the end of December 2025. This move is set to remove its extensive shared fleet of cars and vans from London's streets and is causing significant concern among transport planners and regular users across the capital. 

The UK business, owned by US group Avis Budget, confirmed it is entering a consultation process regarding the closure. The company will suspend new bookings beyond December 31, 2025. 

Impact on London residents
The withdrawal is considered a major blow to London’s transport ecosystem. Car clubs like Zipcar are vital for the estimated 328,000 UK users who rely on them for occasional car access without the expense and burden of private ownership, which is especially important in high-cost areas of London.

Congestion Risk: Transport experts and local councils fear that the loss of Zipcar could force many of its members back into private car ownership, potentially worsening traffic congestion and air quality in the city.

 
Vans and Mobility: The loss of Zipvan, the van-sharing service, is also a concern for small businesses and individuals who rely on the flexible rental of commercial vehicles for work or moving household items. 

Response from City Hall London Councils, representing the city's boroughs, stated that they are working closely with City Hall and Transport for London (TfL) to understand the immediate impact and explore options to fill the gap left by Zipcar. 

The Mayor's office also noted that the withdrawal comes ahead of proposed changes to London’s Congestion Charge, which will extend charging to some Electric Vehicles (EVs) starting in 2026. While Zipcar did not explicitly cite this as the sole reason, the decision highlights the rising external cost pressures on car club viability in the UK market.

Alternatives for former members
Existing rivals, including Enterprise Car Club and peer-to-peer services like Hiyacar, are reportedly considering expansion plans to absorb the thousands of displaced Zipcar members. Former members are advised to explore these alternatives to maintain flexible car access without having to purchase a private vehicle.