Zipcar to shut UK operations as new £13.50 congestion charge for EVs kicks in
Car-sharing firm Zipcar is to shut its UK operations as a new £13.50 congestion charge for electric vehicles comes into force.
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The US-owned business will cease operations in the UK and has launched a consultation with its 71 UK staff.
It will no longer take bookings beyond the end of this year.
Zipcar once promised to take thousands of private cars off London’s streets.
The firm did not give a reason for the decision to cease operations in London, however the new charge for electric vehicles entering the congestion charge zone is likely to be a factor.
Zipcar would have had to pay the up-to-£18 daily charge on any cars that entered the zone, except for the small number permanently based inside.
Increased costs would have had to have been passed on to customers. Currently rates range from £6 to £15 per hour.
In its last set of accounts published last month Zipcar (UK) said: “External cost pressures continued to negatively impact the company. Whilst there was some improvement in fuel prices, electricity costs remained high throughout 2024.
“Resale market values continued to be challenging, which also drove higher costs. Year on year increases in the cost of motor insurance also placed further pressures on costs.”
UK general manager James Taylor said in an email to customers: “I’m writing to let you know that we are proposing to cease the UK operations of Zipcar and have today started formal consultation with our UK employees.
”We will temporarily suspend bookings, pending the outcome of this consultation.”
Customers would still be able to use its vehicles over Christmas and until December 31.
A spokesperson for Sadiq Khan, the mayor of London with oversight of Transport for London, said: “The mayor’s transport strategy is clear on the important role car clubs can play to reduce the need for private car ownership.
"This is why the mayor recently announced that electric car clubs with a dedicated parking bay in the congestion charge zone will receive a 100% discount on the congestion charge from January."