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Zipcar car share to float on US market

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Cityhop
Cityhop

The world’s largest car sharing company, Zipcar, is planning a US stock market float that could raise up to $75m. Reported the Independent, the 10-year-old company filed offer documents yesterday, a month after it dramatically expanded in Britain with the acquisition, Streetcar.

Zipcar pioneered what it called car-sharing, a service that charges an annual membership and rents cars at an hourly or daily rate. The service is successful in markets in which car ownership is lower and parking is scarce and expensive, such as urban areas and colleges. The market has been successful enough that larger car rental companies such as Hertz and Enterprise have started their own rivals.

Zipcar members now number more than 400,000 in 13 major cities and at more than 150 college campuses in North America.

The company has posted losses every year since it was founded and said in a regulatory filing that it also expected losses in 2010. Revenue rose 22.5 per cent to $33.2m in the three months to 31 March, while its net loss widened from $3.0m to $5.3m. If the period had included Streetcar’s results, Zipcar would have posted revenue of $39.6m and a loss of $6.1m.

New Zealand has Cityhop car share co-founded by Victoria Carter and Tim Alpe of JUCY Rentals. Launched in 2007 the company has 20 cars available by the hour to members from $15 an hour including gas.

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