Zipcar Redefines the Rental Car

That means no airports, no waiting, and no sales pitch

By Katy Marquardt

Posted: June 5, 2008

Megan Graff and "Armson," a Honda Accord she rents near her Washington, D.C., home.

Megan Graff and "Armson," a Honda Accord she rents near her Washington, D.C., home.

Passing the Zipcard over a sensor unlocks the door.

Passing the Zipcard over a sensor unlocks the door.

Both Griffith and Abrams say such interest only validates the category's potential. "If Enterprise didn't see an opportunity there, they just wouldn't be doing it," Abrams says. "But the size of the market has yet to be determined. Is this a multibillion-dollar segment? Probably not. But is there a lot more upside? Sure."

Griffith likens Zipcar to other companies that have disrupted old-school models with new technologies, such as Netflix, which reinvented the video rental business, and ing, which challenged traditional bankers with a simple online strategy. "It's incumbent on us as the category leader with the best brand and technology to stay ahead," he says. "Our membership base is our most viral marketing tool. I don't think rental-car companies have done much to engender loyalty." Perhaps the kind of loyalty that keeps customers like Graff hooked on cars like Armson.

Gas is included

Michael of OR comment from Feb 2009 is wrong. You don't pay for gas yourself. Gas and insurance is included in the hourly rate. Every car has a gas card; if you're the one driving and the tank is less than 1/4 full, you are responsible for filling it up using the gas card, not your own card.

Joel of MA @ Oct 08, 2009 18:51:53 PM

It depends how you use it.....

I used Zip car in NYC for 2 years. It makes a lot of sense in case of following:

The trip is quick but of long distance. For instance dropping off my daughter to Stony Brook took about 3 hours or around 30 bucks. It was the fantastic deal.

If the trip takes a lot of time, you end up paying a lot of money. Or if the distance is short, you are better of taking a cab.

Also, timing is important - late night rentals to drop of my daughter were better than doing the same thing during the day.

VKM of NY @ Apr 11, 2009 15:47:19 PM

about zipcar

notes on what the zipcar agreement entails:

you do have to pay for yuor own gas. as a matter of fact you must return it iwth at least 1/4 tank of gas, other wise they charge penalties.

you do have to worry about parking , because it is just liek any normal car.

you do have to get it back in time, late fees start at 50.- dollars.

its expensive, and high tech. if you plan and are a responsible person, and a capable person, that drives safely, this is an interesting service. use caution on the road, and have a safe time.

michael of OR @ Feb 25, 2009 03:28:32 AM

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