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Zipcar aims to make car sharing a way of life

Q&A

CEO Scott Griffith talks about a road to simpler urban living and alternatives to vehicle ownership.

May 01, 2012|By Jerry Hirsch, Los Angeles Times

We focus on lifetime value, years of relationship. Half of our membership base is choosing to sell a car or not buy a car when they sign up with us. That is a huge lifestyle choice and is the start of the brand relationship and is very different from what the rental car companies are doing. Our real competition is car ownership.

Technology also is a hurdle. Half or our activity at Zipcar is now run through smartphones, the Android and the iPhone. You can now unlock a car with our app. You can honk the horn of the car with your phone to figure out which of the five Zipcars is yours. We have almost 700,000 members driving 10,000 cars day and night randomly. Managing that requires a lot of technology. Our revenue per car is almost twice the rental car companies.

Our competition is really car ownership, not the car rental companies.

Does the Zipcar model say anything about how society is changing?

We have more of a sharing economy. People are getting more comfortable with the idea that they don't have to own something all the time. We are now seeing companies like Rent the Runway — single-use couture for dresses and bags. Why pay $1,000 for a dress for one night? Another company offers rentals of office cubes by the half day and day. There is a huge opportunity in the automotive sector for that idea because cars sit around this much.

jerry.hirsch@latimes.com

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