Zipcar (NYSE:ZIP) is busy diversifying its vehicle sharing services. It recently rolled out of its van rental service Zipvan in Boston and Washington, D.C. markets after a successful pilot program in San Francisco, and it also launched its first large-scale electric vehicle (EV) program in Chicago. The membership-based car sharing company serves over 673K members with a fleet of over 9K vehicles in North America and Europe. Aside from competing with traditional rental companies and car-sharing services like Connect by Hertz, Enterprise’s WeCar, UHaul’s UCarShare and City Car Share, it also faces competition from new low-cost, peer-to-peer (P2P) car sharing services like RelayRides and GetAround.
Zipcar Goes “Green” With Electric Vehicles
Zipcar recently launched its first large-scale electric vehicle (EV) program in Chicago with five Chevrolet Volts. It is also investing in developing electric charging infrastructure in the city and is likely to benefit from government support for electric vehicles. EVs are a natural fit to car-sharing programs not just because they are eco-friendly, but also because they offer easy and cheap access to adequate charging infrastructure, which has long been a hurdle in popularizing EVs.
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Zipvan Comes to Boston and Washington, D.C.
The company also rolled out its Zipvan service in Boston and Washington, D.C. It launched its pilot Zipvan service in San Francisco last November and saw strong demand and popularity for its van rental service. It has employed Ford E-150 cargo trucks that allow users to transport bulky personal items, students to relocate in and out of dorms, and helps businesses transport items that are too bulky for cars or pickup trucks. Zipcar is likely to launch this service in more U.S. and Canadian markets during the year.
Read more here.
We have a price estimate of $22 for Zipcar, about 50% ahead of the market price.