The US-headquartered car-sharing group said it plans to “temporarily” suspend new bookings after 31 December after launching a formal consultation with employees over its closure.
The UK operation had 71 employees at the end of 2024, according to its most recently filed accounts.
The company said its customers would still be able to use Zipcars over Christmas and up to 31 December.
James Taylor, general manager of Zipcar UK, told 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.
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“We will temporarily suspend bookings, pending the outcome of this consultation. This means it will not be possible to make any new bookings beyond 31st December 2025, pending the outcome of the consultation.
“This means it will not be possible to make any new bookings beyond December 31 2025, pending the outcome of the consultation.”
He said that customer accounts will remain until the company has confirmed its decision at the end of the consultation process.
Accounts showed that the van and car hire firm saw losses deepen to £5.7m in 2024 after a decrease in customer trips.
Sky News has contacted Zipcar for comment.
