A major UK motoring firm is set to close its UK operations from today, with jobs at risk. Earlier this month, car sharing firm Zipcar announced it would be suspending any new bookings after New Year’s Eve.
The American company, which has run operations in the UK since 2007, has stressed that a formal consultation was underway with its 71 UK staff, with jobs understood to be at risk. Zipcar is one of the largest car-sharing services and runs a fleet of over 3,000 petrol, diesel and electric cars and vans in the UK. However, according to Fleet World, an Avis Budget Group spokesperson stressed the decision to exit the UK was being made to “streamline operations” and “improve returns”.
The spokesperson stressed: “Zipcar has informed UK members that we are proposing to cease Zipcar’s operations in the UK and have begun the required formal consultation with our UK employees. This proposal is part of a broader transformation across our international business, where we are taking deliberate steps to streamline operations, improve returns, and position the company for long-term sustainability and growth.
“As part of this proposal, new bookings in the UK will be suspended beyond 31 December 2025, subject to the outcome of the consultation. Zipcar UK will continue to operate as usual during this period. All other markets remain fully operational and unaffected. We recognise the impact this proposal may have on our members, employees and partners.”
Zipcar has explained they will be in touch with anyone who has a booking that starts on New Years Eve. They explained that customers may be entitled to a refund on certain Zipcar membership fees depending on the type of plan they signed up to.
The company revealed customers would receive a pro-rated refund for the remaining period of their plan once the outcome of the employee consultation has been confirmed.
Rory Brimmer, UK managing director of Turo, a car-sharing competitor of Zipcar, stressed that motorists heading home from their Christmas holidays could be caught out.
He explained: “The reality is that hundreds of thousands of people who rely on car-sharing for essential journeys – visiting family over Christmas, getting to work, the everyday trips we all need to make – are now facing real uncertainty.
“What’s particularly concerning is the timing. With new bookings suspended from 31st December, people may not realise their usual option is gone until they actually need it. That’s not ideal for anyone trying to plan their festive travel or start the new year.”
