Wheels when you want them What is Zipcar

Wheels when you want them

What is Zipcar? • • • An alternative to renting or buying a vehicle Pay an annual member fee Pick up a car at a designated lot Pay per hour or per day Return car to same spot when finished http: //www. zipcar. com/

Zipcar’s History • Began in 1999 in Cambridge, Mass. with 25 cars and a few hundred members • Grew to 700 cars in 2005 with 50, 000 members in five major cities • Merged with Flexcar in 2007 • Today has 6, 000 vehicles and 275, 000 members in 49 cities

Zipcar’s Plans • Occasional Driving Plan $50 annual fee Hourly rate starting at $8 and daily rate starting at $77 • Extra Value Plan $50 monthly commitment 10 -15% driving discount

Why Not Buy or Rent? • No need to pay insurance, gas, car maintenance or other fees • Renting in NYC costs approximately $90 per day versus $77 per day with Zipcar • Save hundreds of dollars per month using Zipcar versus owning

Zipcar and Technology • After joining member will receive a Zipcard in the mail • Reserve a car via the Internet, i. Phone app or telephone through automated service • A central computer activates the car’s key card entry system Allows user to enter the car and start the engine Even with a key, driver cannot start the car without first scanning the zipcard • Little to no need for human-customer contact

Who Supports Zipcar? • Universities Zipcar has exclusive arrangements with many Universities. In these deals the Universities promise the car will make a certain revenue per year usually about $100, 000. • City Governments Their goal is to discourage car ownership, and encourage car sharing, to reduce pollution and congestion. • Everybody September 2009, Zipcar expanded 40 cars in Los Angeles and partnered with city officials, UCLA, and USC. In San Francisco, when the Bay Bridge closed for repairs, over 350 Zipcars were located near transit terminals in the Bay Area. Residents could take trains to stations, and hop into Zipcars to their final destinations

Zipcar Vehicles • Zipcar Vehicles: VW Beetles Honda Civics Toyota Prius Hybrids Ford Escapes Mazda 3 s.

Zipcar Going Green • National studies show that each shared car replaces up to 20 privately owned vehicles. • Corporations in major cities are considering eliminating their urban fleets and using carsharing services. • Zipcar Executives see a fleet of about 1 million cars in the future just in urban areas. This would replace 20 million privately owned vehicles.

Rental Companies vs Zipcar • Rental companies are starting to open small neighborhood rental shops that make it more convenient to rent cars. • They are not Web-enabled like Zipcar, and lack the technology infrastructure to compete effectively. • Hertz started its own car-sharing service. • Connect by Hertz in New York, Paris, and London. Rates are lower than Zipcar’s. • In the New York area, Hertz has over 40, 000 vehicles. • Zipcar has spent over $500, 000 on a fleet reservation system that will connect users, their Web site, and the cars. • Zipcar has no worries and analysts have identified it as a potential candidate for a public offering in 2010.

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