Zipcar goes public, plans for expansion

Summary:Zipcar, the car-sharing service, filed for $75 million IPO yesterday and announced plans for greater expansion.

Zipcar, the auto rental company that describes itself as a "car-sharing" service, filed for an initial public offering (IPO) yesterday. The IPO is estimated at $75 million.

Zipcar is established primarily in urban areas--users pay a yearly fee and can then rent cars by the hour for a fairly low price (usually between $7 and $15). Those cars are found throughout a given city instead of at a centralized location, and Zipcar's garage consists primarily of desirable cars like the Toyota Prius and Mini Cooper.

The service has found significant success among city-dwellers, college students, and others who have no need for a full-time car. Zipcar has expanded rapidly, acquiring competitors StreetCar and FlexCar as well as moving into new territory.

Though Zipcar has not yet shown a profit, that's largely due to its rapid expansion. This IPO proposal seems to be in that same line--Zipcar is trying to get its infrastructure in place, expand to over 100 markets around the world, and the profits will come later.

This post was originally published on Smartplanet.com

Topics: Innovation

About

Contributing Editor Dan Nosowitz has written for Popular Science, Fast Company and Gizmodo. He holds a degree from McGill University in Canada. He is based in New York. Follow him on Twitter.

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