Car-sharing platform Zipcar has said it will close its UK operations by the end of the year.
The US-based company, which is owned by car rental giant Avis Budget, told customers it would temporarily suspend new bookings after December 31 pending the outcome of a consultation with its 71 staff members.
In an email to members, UK boss James Taylor said the company had launched a formal consultation with staff and bookings due to close by the end of the month were being fulfilled.
Zipcar UK and Avis Budget have been contacted for comment.
The company has about 650,000 members in the UK who rent cars by the hour or day from an app and collect vehicles from parking locations.
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 most recent company accounts for 2024, Zipcar blamed a “cost of living crisis” that was affecting UK customers, with revenues falling to £47m from £53m a year earlier, while its after-tax losses 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 pressure on the company.
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