Car-sharing platform Zipcar has said it is to close its UK operations by the end of the year.

The US-based company, which is owned by car rental giant Avis Budget, told customers it will temporarily suspend new bookings after 31 December, pending the outcome of a consultation with its 71 staff members.

In an email to members, UK boss James Taylor said the firm had launched a formal consultation with employees and bookings due to finish by the end of the month were being honoured.

ZipCar UK and Avis Budget have been contacted for comment.

Zipcar members would still be able to use the fleet over Christmas and until 31 December, it said.

The company has about 650,000 members in the UK who rent cars by the hour or day from an app and collect the vehicles from parking spaces, making it the UK’s largest car-sharing operator.

Zipcar closed its operations in Oxford, Cambridge and Bristol last year to focus on its core London market, where it has more than 550,000 members.

In its most recent company accounts for 2024, Zipcar blamed the “cost of living crisis”, which was affecting UK customers, for revenues falling to £47m from £53m the year before, while its after-tax losses had widened to £11.6m.

According to the same accounts, Zipcar membership fees cover the cost of fuelling or charging the vehicle and, as energy costs continued to rise last year, it has added to financial pressures on the company.

The company would also be liable for the incoming congestion charge in London that is expanding to include electric vehicles from 26 December, although this was not referenced in Zipcar’s email to membership or company accounts.