A last-minute effort is underway to persuade Zipcar to remain in London, with Southwark Council offering to waive parking permit fees worth hundreds of thousands of pounds.
The council has proposed suspending permit charges until April 2027 for 138 fixed Zipcar bays across the borough.
It has also offered to waive fees for 60 additional vehicles that rotate between parking locations.
The total annual cost of those permits is estimated at £350,000.
The move follows Zipcar’s announcement earlier this month that it plans to cease UK operations at the end of 2025.
The company said it would temporarily suspend new bookings after December 31 while it formally consults staff.
Southwark Council is urging immediate collaboration between the Mayor of London, Transport for London and other boroughs to support car-sharing providers.
A council spokesperson said around 60% of households in Southwark do not have access to a private car, making Zipcar an essential service.
Councillor James McAsh, Southwark’s Cabinet Member for Clean Air, Streets and Waste, described Zipcar’s proposed exit as “a disaster” for residents and environmental goals.
“That is why today I’m making a bold offer,” he said.
“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.”
McAsh said the council is also prepared to approach alternative car club operators if Zipcar follows through with its exit.
Southwark wants to position itself as the most attractive London borough for car-sharing schemes.
The council views car clubs as a key part of reducing private car ownership and supporting its Streets for People programme.
McAsh called on City Hall and other councils to take coordinated action to help car-sharing operators thrive across the capital.
Zipcar’s UK operation employed 71 staff at the end of last year, according to its most recent accounts.
James Taylor, general manager of Zipcar UK, confirmed that formal consultation with employees is underway.
“We will temporarily suspend bookings, pending the outcome of this consultation,” he told customers.
Customer accounts will remain active until the consultation process concludes and a final decision is confirmed.
Company accounts show losses widened to £5.7 million in 2024, alongside a decline in customer trips.
Southwark Council hopes its financial concession will help reverse the decision and preserve access to car-sharing for residents and businesses.
Whether the offer will be enough to keep Zipcar operating in London remains uncertain.
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