Hackney EV Car Club in Jeopardy as Zipcar Exits UK

Key Points

• Zipcar, the world’s largest car-sharing platform owned by Avis Budget Group, is suspending new bookings after 31 December 2025, with existing bookings usable until the end of the month, impacting over 650,000 UK clients.
• Hackney Council partnered with Zipcar for an electric car club pilot launched in May 2025, funded by over £1 million from the Government’s Local Electric Vehicle Infrastructure (LEVI) Pilot Fund and Zest.
• The project planned for 300 car club vehicles borough-wide by 2026, with about half as electric vehicles (EVs), targeting areas where only 35% of households own a car.
• Pilot goals included deploying 15 electric car club vehicles via Zipcar; Zest to install 70 new on-street fast charging sockets across 35 locations, each with one public EV charging bay and one for car club use.
• Additional plans involved Zipcar and Zero Emissions Network offering local Hackney businesses free first-year membership, £100 introductory driving credit, and 30% off weekend driving rates.
• Broader council aims: cut 25% of street cars by 2041 to improve air quality, create space for cyclists and pedestrians, and promote sustainable transport alternatives.

What Triggered Zipcar’s UK Exit?

Zipcar, the American-owned car-sharing giant under Avis Budget Group, has confirmed suspension of new bookings post-31 December 2025. Members retain access to existing bookings through the Christmas period and until the final day of the year. This affects more than 650,000 clients across the UK. As per the company’s official statement on their UK operations page, the service will cease entirely thereafter, leaving partners like Hackney Council scrambling.

Hackney Council’s new electric car club plans, directly tied to this Zipcar partnership, now hang in the balance. The pilot, launched in May 2025 via hackney.gov.uk/carclub, sought to expand access to vehicles in a low-car-ownership borough while slashing emissions.

How Does This Affect Hackney Council’s Partnership?

Hackney Council collaborated with Zipcar on the electric car club pilot, securing combined funding exceeding £1 million. Sources include the Government’s Local Electric Vehicle Infrastructure (LEVI) Pilot Fund at gov.uk/guidance/apply-for-local-ev-infrastructure-levi-funding and Zest at zest.uk.com. The initiative aimed to deploy 15 electric car club vehicles through Zipcar as part of the pilot phase.

Zest committed to installing 70 new on-street fast charging sockets in 35 borough locations. Each site features one parking bay for public EV charging and another dedicated to electric car club use. This infrastructure push supports the council’s vision for seamless EV access.

Why Is the Electric Car Club Vital for Hackney Residents?

Only 35% of Hackney households own a car, making car clubs essential for equitable transport access. The project eliminates ownership stresses like maintenance and parking while prioritising carbon reduction. Residents gain on-demand vehicles, fostering greener travel habits.

Hackney Council targets 300 car club vehicles borough-wide by 2026, with roughly half as EVs. This scales the pilot’s success, embedding sustainable mobility into daily life.

What Are the Pilot’s Specific Deployment Goals?

The May 2025 pilot focused on 15 electric vehicles operated by Zipcar. Zest’s 70 charging sockets across 35 spots ensure reliable power, split between public and club bays. These deployments address immediate infrastructure gaps in a densely populated area.

Local businesses stood to benefit via Zipcar and Zero Emissions Network’s offer at zipcar.com/en-gb/business/partner/ZeroEmissionsNetwork. Incentives included free first-year membership, a £100 introductory driving credit, and 30% discount on weekend rates, boosting commercial adoption.

What Broader Environmental Targets Does Hackney Pursue?

Hackney Council aspires to reduce street cars by 25% by 2041. This frees space for cyclists and pedestrians, enhancing safety and air quality. The car club aligns with these goals, introducing cleaner alternatives to private vehicles.

By promoting EVs and shared mobility, the borough tackles urban congestion and pollution head-on. Success hinges on replacing Zipcar swiftly to maintain momentum.

Who Funds and Supports the Initiative?

Funding stems from the LEVI Pilot Fund and Zest, totalling over £1 million. Government backing via LEVI underscores national commitment to local EV infrastructure. Zest’s charging rollout complements Zipcar’s vehicles, creating an integrated network.

Zero Emissions Network bolsters business engagement, ensuring economic viability. Council statements emphasise partnership synergy for maximum impact.

When Did the Pilot Launch and What’s the Timeline?

The pilot commenced in May 2025, with initial deployments underway. Full rollout eyes 300 vehicles by 2026, scaling from the 15 EV starters. Zipcar’s exit disrupts this schedule, forcing urgent alternatives before year-end.

Existing bookings persist until 31 December 2025, buying limited time. Council must pivot to new operators to salvage investments.

Where Will Charging Infrastructure Be Installed?

Zest targets 35 locations borough-wide for 70 fast sockets. Each dual-bay setup—one public, one club—maximises utility. These on-street points embed EVs into Hackney’s urban fabric.

Strategic placement serves high-need areas, aligning with low car ownership stats.

Which Businesses Benefit from Free Membership?

Zipcar and Zero Emissions Network planned free first-year access for Hackney firms. The £100 credit and 30% weekend discount ease trials. This targets local enterprises, embedding car clubs into operations.

Such perks accelerate adoption, supporting economic and environmental shifts.

Why Reduce Cars by 25% by 2041?

Hackney’s 2041 vision cuts vehicles to purify air and reclaim streets. Fewer cars mean less pollution, more green space. Car clubs enable this transition without isolating non-drivers.

Cyclist and pedestrian prioritisation follows, reshaping borough mobility.

How Might Hackney Replace Zipcar?

No immediate replacement is named, but council urgency suggests exploring rivals. LEVI funds demand swift action to avoid waste. Potential partners could mirror Zipcar’s scale for 300-vehicle ambitions.

Stakeholders monitor developments closely amid year-end deadline.

What Happens to Existing Zipcar Bookings?

New bookings halt post-31 December 2025, but current ones proceed through Christmas and month-end. Clients access vehicles until closure. This grace period aids transition planning.

Hackney users face service gaps thereafter without intervention.