Truro targets former Zipcar users with capital-light expansion in London

Turo is stepping up its push into London, targeting former Zipcar users with a capital-light car-sharing model that avoids the high costs associated with owning and maintaining a fleet.

The US-based peer-to-peer platform, which has operated in the UK since 2018, allows private car owners to rent out their vehicles directly to users. More than 2,000 London motorists are already listing cars on the platform, according to the company, as it seeks to capitalise on a 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 acts as a marketplace, enabling short-term rentals between individuals. The approach significantly reduces capital expenditure and operational overheads, a key differentiator at a time when rising costs have squeezed fleet-based operators.

Rory Brimmer, Turo’s UK managing director, said the model unlocks value from underutilised assets. “Cars are idle most of the time,” he noted, describing them as assets that can generate income rather than sit unused.

Hosts set their own availability and pricing, with rates fluctuating based on demand and seasonality. Turo takes a commission of between 25% and 35%, depending on the level of insurance and services selected. The company says the average London host earns around £400 per month, although more active users can generate significantly higher returns.

Brimmer himself rents out his Audi Q3 for roughly half the month, earning close to £800, and said built-in safeguards such as insurance cover and DVLA-integrated licence checks are critical to building trust on the platform.

The company has moved quickly to capture displaced demand following Zipcar’s exit, launching a £120,000 advertising campaign across the London Underground and Overground networks. Brimmer described the market shift as a clear “opportunity” to attract users previously reliant on traditional car clubs.

Zipcar’s departure reflects the mounting pressure on fleet-heavy models. The company cited deteriorating financial performance, falling usage and rising costs, including energy, insurance and vehicle maintenance, as key factors behind its decision. Additional pressures, such as the extension of London’s congestion charge to electric vehicles, have further eroded margins.

The contrasting fortunes of the two models highlight a broader shift in the economics of shared mobility. While asset-heavy operators face rising fixed costs and utilisation challenges, marketplace-driven platforms like Turo benefit from scalability without balance sheet exposure.

Policy momentum in London continues to favour shared transport solutions. With lower car ownership rates than the national average, city authorities, led by Mayor Sir Sadiq Khan, are seeking to reduce private vehicle use and encourage alternatives such as car clubs and shared mobility schemes.

Turo’s UK expansion also comes as it recalibrates its global strategy. The company has recently shelved plans for a New York Stock Exchange listing, with chief executive Andre Haddad citing market conditions and a desire to remain private to continue investing in growth.

Despite that decision, the business has scaled rapidly. Revenues rose from $150 million in 2020 to $958 million in 2024, with 150,000 active hosts and 3.5 million users worldwide.

For the UK market, the divergence between capital-light platforms and traditional fleet operators is becoming increasingly pronounced, and as funding tightens and cost pressures persist, that distinction may define the next phase of urban mobility.