Zipcar Pulls Out of the UK as London Prepares New EV Congestion Fees

Core Points - Zipcar is ceasing its operations in the UK due to the introduction of new London Congestion Charges for electric vehicles, leading to a formal consultation with employees and potential job losses [1][2] - The company reported significant financial losses, with losses increasing to £11.7 million in 2024 from £364,000 the previous year, while revenue decreased from £51 million to £47 million [2] - External cost pressures, particularly high electricity costs and challenging resale market values, have negatively impacted the company's financial performance [3][4] Financial Performance - Zipcar's losses widened dramatically in 2024, reaching £11.7 million compared to £364,000 in 2023, indicating a severe decline in profitability [2] - Revenue fell from £51 million in 2023 to £47 million in 2024, reflecting a downward trend in sales [2] Operational Challenges - The introduction of a £13.50 daily charge for electric vehicles in London is expected to significantly affect Zipcar's electric fleet, contributing to the decision to withdraw from the UK market [4][5] - The company faced ongoing external cost pressures, including high electricity costs and increased motor insurance costs, which further strained its financial situation [3][4]