Avis Stops Zipcar Operations in UK Citing Cost Pressures

Avis Budget Group has announced that its car‑sharing service Zipcar will stop operations in the UK after being active for 23 years. Customer accounts will be deactivated on 16 February, and no new bookings are being accepted.

The decision followed a consultation process with UK employees and came after Zipcar had already shut down several regional operations in 2024, including Bristol, Cambridge, and Oxford, in a bid to concentrate on its London operations.

Wind-down reflects financial pressures

Avis Budget Group described the UK exit as part of a broader strategy to “position the company for long-term sustainability and growth.” Financial pressures played a significant role, as Zipcar’s losses in the UK grew to £11.4 million ($15.4 million) in 2024 due to declining customer trips and rising operating costs.

The UK car-sharing market has also presented hurdles, with adoption outside London lagging behind other European cities. These structural and operational challenges made continued service across the UK financially unsustainable.

Avis Budget confirmed that Zipcar will continue to operate in other markets, such as the US, Canada, and Iceland, where demand levels and cost structures support long-term operations.

Autonomous mobility is preparing to launch in London

At the same time that Zipcar is leaving the UK, robotaxi trials are set to begin in London. Uber and Lyft have partnered with Baidu to pilot autonomous taxi programs in the first half of 2026.

These trials will operate under strict regulatory supervision and are expected to be among the most advanced autonomous mobility programs ever conducted in London. The companies plan to launch with a limited fleet initially, gradually expanding to hundreds of vehicles as approvals and safety clearances are obtained.

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