Avis Buys Car Sharing Company Zipcar For $500 Million

ZipCar is a limited use limited growth potential. This is a bigger win for Zip than it is for Avis\Budget. I am surprised no other car rental company has decided to add a zipcar quick short term rental option before. The few times I have seen zipcars in the Seattle area or on Stevens pass they seen to be well used for how young the car is.

People just do not car about cars that are not theirs.

I disagree on limited growth potential and on limited win for Avis.

This lets Zipcar have easier (less expensive) access to more cars and it gives Avis an additional outlet for their cars coming out of rental rotation to make profit longer.

My only fear is that it will make Zipcar's fleet much more generic. Right now, they have a wonderful diversity of cars.... I fear them turning into ZipNissanSentra.

No brainer! Zip founders make out like Bandits, Avis does the expected and gets in ground floor on a new type of rental biz.

At a minimum, Avis knocks out a small but significant new competitor.

I disagree on limited growth potential and on limited win for Avis.

This lets Zipcar have easier (less expensive) access to more cars and it gives Avis an additional outlet for their cars coming out of rental rotation to make profit longer.

My only fear is that it will make Zipcar's fleet much more generic. Right now, they have a wonderful diversity of cars.... I fear them turning into ZipNissanSentra.

I think for dense inner city's this will be a win for Zipcar users with more access to auto's and yet I do agree that they could go the way of Bland rental fleet.

Yet outside of dense inner city use, zipcar and the other new start up that allows owners of cars to rent out to others will have limited traction.

I disagree on limited growth potential and on limited win for Avis.

This lets Zipcar have easier (less expensive) access to more cars and it gives Avis an additional outlet for their cars coming out of rental rotation to make profit longer.

My only fear is that it will make Zipcar's fleet much more generic. Right now, they have a wonderful diversity of cars.... I fear them turning into ZipNissanSentra.

I think for dense inner city's this will be a win for Zipcar users with more access to auto's and yet I do agree that they could go the way of Bland rental fleet.

Yet outside of dense inner city use, zipcar and the other new start up that allows owners of cars to rent out to others will have limited traction.

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.... well... yea... but over 50% of the country's population now lives in cities. That's a pretty good market base.

I've been a member of Zipcar since they arrived in Pittsburgh when they bought Flexcar. I often have to hunt for vehicles because everything near me is taken. I've actually been considering closing my account with them for this specific reason. They are fleet constrained way before they are customer constrained.... but now it looks like they have a remedy to that.

Could zip car be the future for college students and people who do not want to have the hassle of auto ownership? This does make me rethink if we could see the auto rental market become a auto share market for inner city people. Yet is America really 50% living in dense cities? Is seems that suburbs still requires car ownership.

Could zip car be the future for college students and people who do not want to have the hassle of auto ownership? This does make me rethink if we could see the auto rental market become a auto share market for inner city people. Yet is America really 50% living in dense cities? Is seems that suburbs still requires car ownership.

Zipcar is already placing cars in key areas that are between "city" and "suburb" including college campuses that are anything but urban.

Zipcar is already placing cars in key areas that are between "city" and "suburb" including college campuses that are anything but urban.

Yes, they have a location in Tempe, AZ on the ASU campus down the street from my office, which is quasi-suburban...

Inner City and Campuses tend to make sense for this model of business, but I have a hard time seeing rapid growth outside these markets.

Not to say that I might or someone else might not come up with a way to influence suburban people to take this concept on as a 2nd or 3rd auto.

I guess if you do not need a truck or 4x4/awd for mountain trips, then it might make sense for one to have an account where you could quickly get your hands on an auto for short term use.

See and there is where it might still have growth is by marketing a new approach on how to sell ZipCars.

Thinking on this, maybe all rental companies should go to membership programs where people could use them as a 2nd or 3rd auto for special needs.

Not to say that I might or someone else might not come up with a way to influence suburban people to take this concept on as a 2nd or 3rd auto.

I guess if you do not need a truck or 4x4/awd for mountain trips, then it might make sense for one to have an account where you could quickly get your hands on an auto for short term use.

See and there is where it might still have growth is by marketing a new approach on how to sell ZipCars.

Yes, sort like the neighborhood Enterprise rental car or U-Haul...I rent cars from Enterprise when I do a weekend road trip or a truck from U-Haul when I've had to move furniture to my storage unit..

Not to say that I might or someone else might not come up with a way to influence suburban people to take this concept on as a 2nd or 3rd auto.

I guess if you do not need a truck or 4x4/awd for mountain trips, then it might make sense for one to have an account where you could quickly get your hands on an auto for short term use.

See and there is where it might still have growth is by marketing a new approach on how to sell ZipCars.

Yes, sort like the neighborhood Enterprise rental car or U-Haul...I rent cars from Enterprise when I do a weekend road trip or a truck from U-Haul when I've had to move furniture to my storage unit..

But then why spend the money on ZipCar, why not just add this feature to your options. I am sure Enterprise or any of the other rental companies could do this also. It is not like ZipCar has a deep bench of customers to exploit.

Not to say that I might or someone else might not come up with a way to influence suburban people to take this concept on as a 2nd or 3rd auto.

I guess if you do not need a truck or 4x4/awd for mountain trips, then it might make sense for one to have an account where you could quickly get your hands on an auto for short term use.

See and there is where it might still have growth is by marketing a new approach on how to sell ZipCars.

Yes, sort like the neighborhood Enterprise rental car or U-Haul...I rent cars from Enterprise when I do a weekend road trip or a truck from U-Haul when I've had to move furniture to my storage unit..

But then why spend the money on ZipCar, why not just add this feature to your options. I am sure Enterprise or any of the other rental companies could do this also. It is not like ZipCar has a deep bench of customers to exploit.

Brand recognition...the ZipCar brand is established, so this gives Avis an in to customers that would never have considered a regular rental car company.

Fuel is included with Zipcars.

Interesting, I have learned more about ZipCar than I have ever known before. I wonder how they grew when I really see no advertising for them at all.

Including fuel is a nice feature, what else do they include in comparison to a rental company and how does a car get services/refueled? I assume you always bring it back empty or as low as possible.

No. There is a credit card in the sun visor and you fill it up if it is below 1/4 of a tank. There are certain pin numbers you need to include when purchasing the gas, so don't think you'll be able to run around filling up your own vehicles on their credit card. They will also reimburse you for filling up the washer fluid. Some insurance is included by default, but the deductable is $500. They will let you buy that down to nothing for an extra $75 per year.

Very interesting, I can see this as a valid use by inner city folks not really needing a car the majority of the time.

Services like ZipCar, AirBnB, Bike Share, cowork environments, are all part of the 'collaborative consumption' movement. Not part of my reality context, but I can understand the mindset for people who don't want to be tied down with ownership of stuff....

Services like ZipCar, AirBnB, Bike Share, cowork environments, are all part of the 'collaborative consumption' movement. Not part of my reality context, but I can understand the mindset for people who don't want to be tied down with ownership of stuff....

While I see value in a service like this for a select group of inner city people, I do not see this being a mass market use here in America. I can see this more in use in Europe or the Asian Rim.

Services like ZipCar, AirBnB, Bike Share, cowork environments, are all part of the 'collaborative consumption' movement. Not part of my reality context, but I can understand the mindset for people who don't want to be tied down with ownership of stuff....

While I see value in a service like this for a select group of inner city people, I do not see this being a mass market use here in America. I can see this more in use in Europe or the Asian Rim.

I think it's also a generational thing....a lot of younger, well educated people in the US prefer city life to suburbia and traditional commuting, etc.

Services like ZipCar, AirBnB, Bike Share, cowork environments, are all part of the 'collaborative consumption' movement. Not part of my reality context, but I can understand the mindset for people who don't want to be tied down with ownership of stuff....

While I see value in a service like this for a select group of inner city people, I do not see this being a mass market use here in America. I can see this more in use in Europe or the Asian Rim.

You have to remember, more than half the country lives in cities. That's a lot of market. Blanket a city with a bunch of sharable cars and a lot of city folks will opt out of car ownership all together. Zipcar is far cheaper than fueling, insuring, and paying for parking for your own car. If you live in a spot with a few of these ZipCars around, it can be a viable alternative to a $350 a month car payment + insurance + gas + parking..... plus you can pick your car depending on your mood or needs.

Yet as more use this service I doubt people will care about the auto and I suspect they will end up trashed as I have seen of the few Zip's in Seattle. That is one thing I have noticed about City dwellers, they tend to not care about taking care of things.

I admit I will never be a Zip Car user, but I do understand the market and need for the Inner City Dweller.

Services like ZipCar, AirBnB, Bike Share, cowork environments, are all part of the 'collaborative consumption' movement. Not part of my reality context, but I can understand the mindset for people who don't want to be tied down with ownership of stuff....

While I see value in a service like this for a select group of inner city people, I do not see this being a mass market use here in America. I can see this more in use in Europe or the Asian Rim.

You have to remember, more than half the country lives in cities. That's a lot of market. Blanket a city with a bunch of sharable cars and a lot of city folks will opt out of car ownership all together. Zipcar is far cheaper than fueling, insuring, and paying for parking for your own car. If you live in a spot with a few of these ZipCars around, it can be a viable alternative to a $350 a month car payment + insurance + gas + parking..... plus you can pick your car depending on your mood or needs.

It makes perfect sense to me... at some point I want to live in a downtown loft type environment again somewhere, I did it for a few years in Denver (but still had cars). My next home when I leave AZ will probably be in suburbia, as I really want more square footage...

Yet as more use this service I doubt people will care about the auto and I suspect they will end up trashed as I have seen of the few Zip's in Seattle. That is one thing I have noticed about City dwellers, they tend to not care about taking care of things.

I admit I will never be a Zip Car user, but I do understand the market and need for the Inner City Dweller.

You are fined by Zipcar if the next user finds the car in bad condition or damaged. The users are responsible for keeping the car clean and reporting damage if found. Again, I've been using Zipcar and its predecessor Flexcar since 2007 and never really had a problem.

Even though I own a car, I use zip car because taking the bus to work and then grabbing a Zipcar for 2 hours over lunch is cheaper than driving in and paying for parking on days that I need to run an errand. I also use Zipcar when I need a truck. I bus into downtown or over to Carnegie Mellon University, grab the truck and go.

That is cool that they have a system in place to try and keep the auto's clean and usable so they do not get trashed.

renting cars was always expensive and rare because of the liability and damage issue.

that is why if you're under 25 it's tougher to rent a car.

and renting is like it is in housing. People tend to think if you are a renter, you don't care, and are more prone to trashing the place.

It's human nature. If you own it and have vested interest in it, you'll keep it up. If you rent it, who cares? Someone else will take care of it.

The way the govt is going, maybe zipcar use will become part of what is given out too.

Zip cars are a good idea for urban dwellers but it conceals a larger problem. Car ownership is too expensive now to begin with. So decades ago, when people could own a car to get to their job, they were able to. Now it's more reality. $h! pay, high debt, bad job, no future, and housing and other bills take all your income.

Volt type cars would be good for a Zipcar. Short trips, plug it back in when you get back.

That's not to assume that everyone should own a car or would want to. It's not to say that it should be a society that 'requires' everyone to own a car. But it does highlight how expensive it is in comparison to everything else when the economy has been so horrific and shows no signs of ever being healthy again.

It's been a trend to have some population move to cities into condos and stuff. It's a bit romantic, but the cost / benefit of it really is not the strong argument aside from not requiring you to own a car if you are one of the people that work in a downtown. People tend to think all the jobs are in a downtown. No they are not. And then there is for everyone who may have a trendy urban condo, there are as many old houses being boarded up with weeds in the yard in those same cities maybe a mile or two away.

There are plenty of stories out there of people being dissatisfied with the living downtown in a box thing. Many had never lived in condos before, and dislike it. Many don't like the density. Your exodus would be bigger for those groups if they wouldn't lose their ass on selling their property.

Just listening on the radio yesterday. One of my downtowns here, they closed the Macy's finally! After the 20 year agreement with the city on a loan just to subsidize the place was up. Macy's had paid the loan off of course, but probably was still losing their ass on the operation of the store. No business! Now the city will probably dump a ton more money into more 'development' that won't be market supported. People might buy a 20 oz pop over noon hour, but don't shop at nights and on weekends. You even hear stories of traffic exodus from cities on the weekends out to the shopping centers because even though some new retail gets built, people who live in these condos and such prefer to get in a car and go to the costcos and malls that are outside the trendy urban centers.

A lot of people would like to think its a huge mass movement to the cities proper. That is a hyperbole. It's not to the level that is stated. ANd usually once people get that out of their system, if they are having kids they usually give up on the romantic nature of being downtown and look for the first opportunity to get out to where the good schools are.