Zipcar Announces Expansion Into San Francisco

Country's Largest Provider of Self-Service Cars Selects Bay Area as Its First West Coast Market

CAMBRIDGE, Mass., Aug. 15 -- Zipcar, the nation's largest provider of self-service cars for use by the hour or day, is officially hitting the streets of San Francisco, offering local residents and businesses a convenient and cost-effective alternative to car-ownership and traditional car rental. The company announced today that it has selected the Bay Area as its first West Coast market, and anticipates a September 1 launch focusing on neighborhoods throughout San Francisco. Zipcar is taking applications for membership in San Francisco immediately at http://www.zipcar.com/.

In July, Zipcar announced it had secured its first institutional round of funding, with an initial close of $10 million, led by West Coast venture capital firm Benchmark Capital. This new funding will fuel Zipcar's plans to immediately expand its service, currently operating in 7 states and 21 cities, to additional major U.S. metropolitan markets. Zipcar has launched West Coast operations, with plans to bring its service to Seattle and Portland, Oregon as well as the Bay Area. To celebrate the launch of this new city, Bay Area residents can now join Zipcar at http://www.zipcar.com/ for only $50. Zipcar will also credit every new account in San Francisco with $25 in free driving so that urbanites can experience first hand why car-sharing is better than car ownership. Additionally, with Zipcar, there are never any monthly fees, costly deposits or per-mileage charges. Zipcar also provides 125 free miles per reservation.

"As we have shown in other markets, Zipcar's premier car-sharing service will expand transportation alternatives in San Francisco, and improve the lifestyle of urban residents," said Zipcar CEO Scott Griffith. "We expect that our variety of vehicles, accessible locations and our innovative brand and in- car amenities will encourage San Francisco drivers to consider Zipcar as a fun, affordable, convenient and environmentally-friendly alternative to car- ownership."

Over the past year Zipcar has realized a 100%+ increase in members and vehicles and has become the first car-sharing service in North America to attain profitability in all of its markets. Zipcar has the largest active membership base of any car-sharing service, with over 40,000 members signed since inception and over 2,500 new members joining Zipcar's service each month. To date, Zipcar has built the largest and most varied fleet of any car- sharing service, with over 20 different makes and models, including the Toyota Prius hybrid, MINI Cooper, Volkswagen Jetta, Mazda 3, BMW 325i, Scion xB, Ford Escape and the Toyota Tacoma pickup truck.

With Zipcar's technology, accessing and using a Zipcar is as easy as getting cash from an ATM. In minutes or up to a year in advance, members can reserve Zipcars online or by phone, 24 hours a day, seven days a week. Zipcar members have automated access to Zipcars using a "Zipcard" to simply unlock the door and drive away. Rates in San Francisco will start at $8.50 per hour and $60 per day, with gas, parking, insurance and XM Satellite Radio service included. Special business rates are also available for small to large-sized companies looking for a more convenient and cost-effective way of providing transportation for their employees. To join, residents simply need to have a valid drivers license, be 21+ and meet safe driving standards.

About Zipcar

Zipcar (http://www.zipcar.com/) was founded in 1999. Since 2000, when Zipcars first hit the road, more than 40,000 consumers and business drivers ages 21+ have joined. Zipcar currently operates 700 vehicles in 7 states and 21 cities throughout the country. Zipcar also has operations on or near over 20 university campuses. In July 2005, Zipcar secured $10 million in funding, led by Benchmark Capital, to begin aggressive expansion to become the country's first national car-sharing service. As part of this expansion, Zipcar has recently launched West Coast operations, with plans to bring its service to San Francisco, Seattle, and Portland, Oregon.