Turo Targets Former Zipcar Users with Low-Capital Car Sharing Model

An online car-sharing platform seeking to attract former Zipcar users is expanding its presence in London, promoting peer-to-peer vehicle rentals as a way for private owners to generate regular income from cars that would otherwise sit idle.

Turo, a US-based startup that has operated in the UK since 2018, says more than 2,000 London motorists are already listing vehicles on its platform. Unlike Zipcar, which withdrew from the capital at the end of December, Turo does not own or rent its own fleet, but rather facilitates short-term rentals between individuals.

The company’s UK managing director Rory Brimmer said the model avoided the capital costs associated with fleet ownership. talking to The evening standardHe said the vehicles were “idle most of the time” and represented “an asset… that can generate income.”

Under Turo’s pricing structure, hosts set availability while prices fluctuate based on demand and seasonality. The platform discounts between 25% and 35% of the rental amount, depending on the insurance and service package chosen. Turo says the average host earns around £400 a month, although returns vary depending on vehicle type and utilization.

Brimmer, who rents his own Audi Q3, explained The evening standard who uses the platform “about half the time”, generating around £800 a month. He said insurance cover and license checks were key to encouraging participation, noting the company was integrated with DVLA systems to verify drivers.

Following Zipcar’s exit, Turo launched a £120,000 advertising campaign on the Tube and London Overground. Brimmer said the company acted quickly after the announcement and described the gap in the market as “an opportunity” to capture displaced demand.

Zipcar previously said its decision to exit the UK market at the end of 2025 reflects deteriorating financial performance and rising operating costs that have made the business model less viable. In its accounts, the UK subsidiary reported widening losses after falling revenues, a trend partly attributed to lower usage and higher energy, insurance and fleet maintenance costs. The introduction of new charges in London – including the extension of congestion charging to electric vehicles – is understood to have increased daily operating costs for a fleet with a significant proportion of electric vehicles, further squeezing margins. In a customer communication, UK CEO James Taylor announced a formal consultation on ceasing operations, noting that it would not be possible to accept new bookings beyond December 31 while the company assesses the future of the business.

Political interest in car sharing remains strong in London, where car ownership is below the national average. Mayor Sir Sadiq Khan’s transport strategies aim to reduce the number of privately owned cars, while several boroughs have called for greater support for car clubs and shared mobility schemes.

The UK expansion comes as Turo reassesses its US capital markets strategy. According TechCrunchThe company withdrew its plans to list on the New York Stock Exchange, ending a three-year effort to conduct an initial public offering.

In a statement reported by TechCrunchChief Executive Andre Haddad said the board had decided “now is not the right time” to go public, citing changing market conditions. He said staying private would allow Turo to continue investing in the business.

TechCrunch reported that Turo’s revenue grew from $150 million in 2020 to $958 million in 2024, despite a slowdown in growth and the recent closure of US rival Getaround. As of September 2024, the company reported 150,000 active hosts worldwide, 350,000 vehicle listings, and 3.5 million active guests.

For UK and EU readers, the decision highlights the contrast between Turo’s capital-light market model and the balance sheet-heavy approach of traditional car clubs, a distinction that has become more prominent as funding conditions tighten and operators reassess the economics of shared mobility.

“Turo Targets Former Zipcar Users with Capital-Light Car Sharing Model” was created and originally published by Motor Finance Online, a brand owned by GlobalData.

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