The service shut down because it could no longer operate economically. The operators cited several key reasons:

Their revenue model relied entirely on ads, which was decimated by widespread ad-blocker use.

Zippyshare is officially defunct as of March 2023 due to rising costs and ad-blocker impact. This is a verified alternative link. Why Zippyshare Closed

Newer services offered more features and better performance compared to Zippyshare's "simple formula" that hadn't changed much since 2006.