Hourly car rentals become more popular

Hourly car rentals are becoming ever more popular, as the price of gas at the pumps continues its steep upward climb. While car rental firms have traditionally offered vehicle hires on a daily basis, some have now decided to give Zipcar, the largest hourly car sharing company, a run for its money, by entering this increasingly lucrative and emerging market, according to a CNN Market analysis. Zipcar was established eight years ago, but since then the firm has become popular not only with college students who could now avoid having to purchase their own car by simply renting one on an hourly basis to run errands, but also among savvy urbanites, who have come to realize how much they can save by giving up on their family vehicle, and using a combination of public transport and regular Zipcar rentals to get around town.

Zipcar’s car sharing program has already grown to include an impressive 200,000 members, and while the company is most prominent in the United States, its presence in rapidly growing in Canada and in Western Europe as well. Most impressive, however, is the fact that Zipcar’s membership figures have increased by 50,000 since 2006, and they continue to rise further.

Scott Griffith, Zipcar’s CEO, predicted that since the company is experiencing close to 100 percent annual growth-which is all but unmatched in the rental industry-it will likely become profitable within a year. Zipcar differs from traditional car rental companies in that membership is required to rent vehicles. Additionally, customers simply go online to reserve their car and once they have done so, they may choose to pick up an available vehicle parked at a number of central locations in major urban centres and on university campuses. In most cases, the hourly rental rate stands at around $9, and this fee includes a tank of petrol, as well as full insurance coverage.

www.zipcar.com