In a dramatic eleventh-hour intervention, a London council is attempting to prevent the car-sharing giant Zipcar from leaving the capital by offering a significant financial incentive.
Council's Bold Offer to Avert a 'Disaster'
Southwark Council has proposed waiving all parking permit fees for Zipcar's fleet until April 2027, in a direct effort to persuade the company to continue its operations. This concession would cover the annual cost of approximately £350,000 for permits for the 138 dedicated parking bays currently used by Zipcar vehicles across the borough, as well as fees for an additional 60 vehicles that operate on a 'floating' model between different bays.
The offer comes as a direct response to Zipcar's shocking announcement earlier in December 2025 that it proposes to cease all UK operations. The company has stated it will temporarily suspend new bookings after December 31 while it enters a formal consultation period with its 71 UK employees.
A Vital Service for a Car-Light Borough
Councillor James McAsh, Southwark Council’s Cabinet Member for Clean Air, Streets and Waste, labelled the potential departure a "disaster" for residents, the council's 'Streets for People' programme, and for climate goals. He emphasised that 60 per cent of households in Southwark do not have access to a private car, making shared services like Zipcar essential.
"That is why today I’m making a bold offer – Southwark will provide a concession to Zipcar giving free parking permits for all their cars until April 2027 if they continue to operate in our borough," stated Cllr McAsh. He stressed the move was to ensure thousands of residents and businesses who rely on the service are not left stranded.
A Call for London-Wide Action and a Contingency Plan
The council is not acting alone in spirit. It has issued a call for "immediate work" between Mayor Sadiq Khan, Transport for London (TfL), and other London boroughs to create a supportive environment for Zipcar and other car-club operators across the capital. The goal is to foster conditions that reduce private car ownership.
Should Zipcar decide to leave despite the offer, Southwark has a backup plan. The council has committed to writing to other car club operators in the new year, offering them the same free parking permit concession to launch services in the borough and fill the gap. "This is a clear sign of our commitment to making Southwark the most attractive place in London for car clubs to operate in," added Cllr McAsh.
The company's financial challenges are noted in its most recent accounts, which showed losses deepening to £5.7 million in 2024 following a decrease in customer trips. James Taylor, general manager of Zipcar UK, confirmed to customers that no new bookings can be made beyond December 31, 2025, pending the outcome of the employee consultation.
