After Six Months, Zipcar Exceeding Growth Forecasts
12 December 2000
After Six Months, Zipcar Exceeding Growth Forecasts; Membership Close to 500; Company Adding 2 Cars Per Week
CAMBRIDGE, Mass.--Dec. 11, 2000--Six months after launching a revolutionary new concept in urban automobile transportation, Zipcar has announced that it is dramatically exceeding its original business plan and now boasts more than 450 members in its Greater Boston test market. The Zipcar fleet of Volkswagens now totals 27 vehicles with the company adding two new cars per week to meet demand.Introduced in Boston last June, Zipcar is redefining the car-sharing concept, offering affordable 24-hour access to new cars for as little as one hour. Zipcar (www.zipcar.com) is the area's first company to present a viable alternative to the expense and inconvenience of owning and parking an automobile in urban settings. The company's 27 cars are available in the South End, Back Bay, Beacon Hill, Cambridge, North End, Jamaica Plain, Somerville and Brookline. To help support this growth, Zipcar recently closed on its seed round of financing.
"After six months we are more than pleased with the growth of Zipcar in the Greater Boston area," claimed Robin Chase, co-founder and CEO. "Zipcar allows urban drivers major financial savings when compared to owning a car, incredible convenience through easy access to cars and the ability to avoid the hassles and headaches of car ownership in the city. Municipal governments, large institutions, employers and developers value our service as well because we take cars off the road and out of parking lots. We use scarce and costly parking resources much more efficiently and reduce congestion and air pollution, too."
Chase went on to explain that city residents or employers who need a car or a second car only from time-to-time are the ideal Zipcar customers. She pointed out that people who use a car 15 hours per month will pay just about $1,300 per year with Zipcar, less than most Bostonians pay per year for car insurance alone.
Zipcar collects member comments on its website and, according to Chase, "convenience is clearly the greatest value that we offer."
Zipcars are located in reserved off-street parking spots throughout the city, generally within a few blocks of any member and within walking distance from public transportation. Zipcar handles all the details involved with car maintenance, cleaning and insurance. The company even pays for gas.