Zipcar to shut down in the UK: what happens to your bookings and refunds

Car sharing has become a lifeline for people who cannot afford to run a car day to day, especially in busy cities.

So the news that Zipcar is preparing to shut its UK operations has left many drivers worried about what comes next.

Zipcar has told members that it plans to stop operating in the UK and has started a formal consultation with its staff.

This means the service is still running for now, but changes are already underway. Here is what this all means in plain English.

When Zipcar is shutting down

Zipcar has said customers can continue using its cars until 31 December, but you cannot make bookings past that date. The company has paused new reservations while the consultation takes place. Existing bookings that end before then will still be honoured.

Zipcar has around 650,000 members in the UK and has been the biggest car sharing operator here.

It previously pulled out of Oxford, Cambridge and Bristol to focus on London, but even that has not been enough to keep the service going.

Revenues fell last year, and losses grew, partly because of higher energy prices and the growing cost of running the fleet.

Zipcar has also told customers that their accounts will stay open until a final decision is made. It has not said when that decision will be confirmed.

What happens to bookings you already have

If you have an active booking that ends on or before 31 December, you can still use it as normal.

No bookings can currently be made after that date, and availability may slowly reduce as cars are removed from service.

Customers have been told that this could be a phased wind-down if the shutdown goes ahead.

Will you get a refund

Many Zipcar users have monthly or annual subscription plans, so refunds have been a big question.

Zipcar says people with subscriptions that run into next year will get a pro rata refund for any time they cannot use the service if it closes early.

Pay as you go users will not receive refunds because they only pay when they book.

If you have unused credit or prepaid packages, you may also be entitled to money back depending on your account terms.

Under UK consumer law, when a service you have paid for stops being provided, you can usually claim a refund for the unused part. I

f things are not sorted quickly, you can raise a complaint with Zipcar, ask your bank for help or speak to Citizens Advice.

Make sure you keep screenshots, receipts and any emails in case you need proof.

Why Zipcar is leaving the UK

Zipcar’s own accounts point to the cost of living crisis putting pressure on members.

Fewer bookings and rising costs meant the business brought in £47 million last year, down from £53 million the year before. Losses also increased.

The cost of fuelling and charging the cars has risen, and this pressure has hit households too, as shown in the average energy bill in the UK.

From 26 December, all cars, including electric ones, will face London’s expanded congestion charge. This adds even more pressure on a service that already runs on tight margins.

What to do now if you rely on Zipcar

If Zipcar is your main backup for travel, do not wait until the service switches off. You have a few routes to explore.

Zipcar has directed users to CoMoUK, which lists car clubs and shared transport options around the UK.

These may include local car share groups, community schemes or one-way car clubs, depending on where you live.

If you live in London or near a big city, you may still have good access to other providers.

If you are outside those areas, availability can be more limited, so checking now gives you time to plan.

You could also look at short term hire companies, split ownership schemes, or even joining a neighbourhood WhatsApp or Facebook group where households sometimes share a single car for a small fee.

What this means for the future of car sharing in the UK

Losing the biggest operator will worry anyone who depends on shared transport to avoid the cost of owning a car.

But demand for flexible and affordable transport is still growing, especially in cities where running a car is too expensive.

New operators often step in when gaps appear, and community schemes usually get a boost when large services withdraw.

The next few months will tell us which way it will go, but it is clear the UK still needs affordable ways to get around that do not involve buying a car outright.