Carsharing system Zipcar goes public

By Jan Christiaens / Updated: 01 Aug 2014
Car sharing enterprise Zipcar raised $174 million in its initial public offering on the stock market. The demand for Zipcar equities is higher than expected.
Zipcar is one of the world-wide leading car sharing enterprises and market leader in the UK and the USA with 560,000 members, or Zipsters, operating in 14 metropolitan areas and 230 colleges. The Zipcar car sharing system consists of 4 simple steps:

  • People who are interested in driving a Zipcar vehicle have to join the Zipcar community.
  • They receive a RFID-card called “Zipcard”.
  • Members choose online or over phone which type of car is needed, a time slot and a location.
  • Their Zipcard opens the reserved Zipcar. Gas, reserved parking and insurance are all included in the price.

The marketing concept of Zipcar seems to be very well thought out. It points out that using a vehicle of the car sharing giant means to be part of a “green, modern and sustainable movement”.

On the 14th of April Zipcar went public, with demand for equities higher than expected and raising $174 million on in its initial public offering. Experts estimate that Zipcar could settle its car sharing system in Europe with the earned extra capital. As a consequence costs of car sharing could go down. Also, the going public of Zipcar might attract more people to car sharing.

Source: Online Wall Street Journal (in English)
Country: 
Europe-wide
Topic: 
Mobility management