Zipcar Overview
Zipcar is an innovative rental car company that has sparked the interest of many investors. To me, it seems like the Netflix of the rental car industry. The Zipcar business model is incredibly convenient for customers, which I think will ultimately result in customer retention and loyalty.
How does Zipcar work?
- Join:
- You pay an initial fee to have a Zipcar membership. You will receive a "Zipcard" that will function as a key.
- Reserve:
- Sign up for a time-slot when you need a car. You can also choose to reserve a car for a full day. Hourly rates are usually $9, while a full day will cost about $70. It's important to note that gas and insurance are included.
- Drive:
- Your Zipcar will be ready for you at a parking spot close to your location.
- Return:
- Return the car back to the original parking spot.
Final Thoughts
Zipcar has what I love, an innovative and patented business model that "smells right." Because Zipcar is a relatively young company, it has yet to turn a profit. This will no doubt be a concern for many investors, however I believe that Zipcar will be profitable in the long-term. If I had to guess, Zipcar will receive immense interest from outside companies such as Ford and Toyota. In the end, I believe that this will be at least multi-billion dollar company.
I would advise investors not to invest in this company until more information about its financials are released.
