Zipcar to face competition from car rental giants

Zipcar, an American pioneer in hourly car rentals, has enjoyed significant success since its establishment in 1999 and has a loyal base of members, which now numbers over 180,000. While this success is clearly reason for Zipcar to celebrate, the popular car sharing firm must also prepare itself for stiff competition from major, international car hire companies, which are planning to introduce hourly car rental options.

Major car rental firms like Hertz and Enterprise have come to realize just how lucrative renting vehicles on an hourly basis can be. Zipcar’s model seems to be truly popular among college students at dozens of American university campuses, as well as among urbanites who choose to give up with personal vehicle for the more economical and environmentally-friendly option of renting on an hourly basis, whenever necessary. Zipcar’s service is remarkably affordable; for under $10, clients can normally rent a car per hour, and also receive a complimentary tank of gasoline, as well as insurance coverage for this low rate. Additionally, Zipcar’s car sharing service does away with time-consuming paper work.

Enterprise and Hertz appear to be most inclined to try their luck in the hourly car rental market. Hertz, however, is still testing the waters and offering vehicles for as much as $15 per hour. This means that Zipcar still enjoys a competitive advantage and can attract clients looking for rock-bottom rates. Hertz’s hourly service was first launched last fall in Boston and has yet to expand across the country. Enterprise, however, appears to be significantly ahead, as it has started up a new car sharing brand called WeCar and introduced its product in St. Louis, with concrete plans to take it do different cities.

Zipcar, however, remains a leader in the car sharing business. The firm is the largest car sharing company in the world, with a fleet consisting of around 5,000 vehicles and with a presence in nearly all major urban centers.

www.zipcar.com