Turo is ramping up its push into London, targeting former Zipcar users with a low-capital car-sharing model that avoids the high costs associated with owning and maintaining a fleet.
The US-based peer-to-peer platform, which has been operating in the UK since 2018, allows private car owners to rent their vehicles directly to users. According to the company, more than 2,000 London drivers are already offering cars on the platform to take advantage of the gap left by Zipcar’s withdrawal from the capital at the end of 2025.
Unlike traditional car clubs, Turo does not own or lease vehicles. Instead, it functions as a marketplace, allowing short-term rentals between individuals. The approach significantly reduces capital expenditure and operating overhead, a key differentiator at a time when fleet-based operators are being squeezed by rising costs.
Rory Brimmer, Turo’s UK managing director, said the model unlocks value from unused assets. “Cars sit idle most of the time,” he noted, describing them as assets that can generate income rather than sit idle.
Hosts set their own availability and prices, with prices fluctuating depending on demand and seasonality. Turo charges a commission between 25% and 35%, depending on the insurance level and services chosen. The company says the average London host earns around £400 per month, although more active users can achieve significantly higher returns.
Brimmer himself rents out his Audi Q3 for around half the month and earns almost £800. He said integrated security measures such as insurance cover and DVLA integrated license checks were crucial to building trust on the platform.
The company has moved quickly to meet displaced demand following Zipcar’s exit, launching a £120,000 advertising campaign across the London Underground and Overground network. Brimmer described the market change as a clear “opportunity” to attract users who previously relied on traditional car clubs.
Zipcar’s departure reflects increasing pressure on fleet-heavy models. The company cited deteriorating financial performance, falling consumption and rising costs, including energy, insurance and vehicle maintenance, as key factors in its decision. Additional burdens, such as the extension of the London congestion charge to electric vehicles, have further reduced margins.
The contrasting trajectory of the two models illustrates a broader shift in the economics of shared mobility. While asset-intensive operators face rising fixed costs and utilization issues, market-focused platforms like Turo benefit from scalability without balance sheet risks.
Political dynamics in London continue to favor shared transport solutions. With car ownership rates lower than the national average, city authorities led by Mayor Sir Sadiq Khan are trying to reduce the use of private vehicles and promote alternatives such as car clubs and shared mobility programs.
Turo’s expansion in the UK also comes as it refocuses its global strategy. The company recently put its plans to list on the New York Stock Exchange on hold. Chief Executive Officer Andre Haddad cited market conditions and the desire to remain private to continue investing for growth.
Despite this decision, the company grew quickly. Revenue increased from $150 million in 2020 to $958 million in 2024, with 150,000 active hosts and 3.5 million users worldwide.
In the UK market, the divergence between capital-light platforms and traditional fleet operators is becoming increasingly clear, and as funding tightens and cost pressures continue, this distinction could define the next phase of urban mobility.
