Kevin JohnsonZipcar is a car rental and car-sharing service company headquartered in Boston, Massachusetts. Antje Danielson and Robin Chase founded the company in 2000 and merged it with Flexcar in 2007 to create a nationwide car rental service. The car rental company went public via IPO in 2011 and started trading on NASDAQ.
In 2013, Avis Budget Group acquired Zipcar for roughly $500 million. Zipcar was the first US car-sharing provider to introduce hybrid and electric vehicles (EVs) in its fleet. The company seeks to expand its EV fleet in 2023 and allocate 25% of its cars to disadvantaged communities across the US. In June 2023, Zipcar had around 615 employees. [1]
Zipcar is the world’s leading car-sharing network. The company provides 24/7 on-demand access to cars by the hour, day, or week in hundreds of cities, towns, and university campuses in nine countries globally. Customers pay a membership fee of $9/month or $90/year to use Zipcar’s service.
In Feb 2023, Zipcar expanded on-streetcar-sharing locations in New York City after a successful five-year pilot with the NYC Department of Transportation. Nearly 1,000 households in underserved neighborhoods can now access Zipcar vehicles. However, Zipcar faces stiff competition from Getaround, Turo, Uber, Hertz, and Enterprise. [2]
Here is an in-depth analysis of Zipcar’s top 10 competitors and alternatives:
1. Turo
Year founded: 2009
Headquarter: San Francisco, California
Turo is a peer-to-peer car-sharing and car rental company. The company filed confidentially for an IPO in Jan 2022. In Dec 2022, Turo had 320,000 rental vehicles on its platform and 2.9 million active users globally. [3]
Turo and Zipcar offer car-sharing and rental services in the US, Canada, and the UK. As of Dec 2023, Turo had 160,000 active hosts on its platform. About 24,000 Turo hosts rent out more than three vehicles via third-party services, like CarSync and Fleetwire.
In Apr 2023, Turo announced plans to block access to third-party services to increase the supply of cars available to guests. This move can help convert consumer hosts with 1-2 rental vehicles into small businesses and professional hosts who share over ten cars. Turo is the top Zipcar competitor and alternative. [4]
2. Getaround
Year founded: 2009
Headquarter: San Francisco, California
Getaround is a peer-to-peer car-sharing and car rental service with over 1.2 million members across 800 cities globally. The company went public in Dec 2022 but lost 96% of its value within months. In 2022, Getaround had around 550 employees and over 6 million users on its platform.
Getaround’s customers can browse and book rental vehicles in their area via the Getaround app or website. In May 2023, Getaround acquired car-sharing marketplace HyreCar for $9.45 million. This acquisition can increase Getaround’s competitive advantage over Zipcar. [5]
3. Uber
Year founded: 2009
Headquarter: San Francisco, California
Uber is a global rideshare company with over 100 million monthly users. The company has around 29,300 employees and operates in 69 countries globally. In 2022, Uber acquired Car Next Door to provide a peer-to-peer car-sharing service in Australia.
Uber operates Uber Rentals, a car rental service that competes against Zipcar. Customers can search and book vehicles via the Uber app. In Jun 2023, Uber announced its new peer-to-peer car-sharing service, Uber Car-share. Car owners in Boston and Toronto can now rent out their vehicles via the Uber platform. Both Uber and Zipcar now offer P2P car-sharing services in both markets, and Uber is a formidable competitor for Zipcar. [6]
4. Hertz Corporation
Year founded: 1918
Headquarter: Estero, Florida
Hertz is a car rental company that owns Firefly Car Rental, Thrifty Car Rental, and Dollar Rent-A-Car. The company operates around 12,000 corporate and franchisee locations in 160 countries. As of May 2023, Hertz had 500,000 cars in its fleet, including about 50,000 EVs. The company seeks to purchase 330,000 electric vehicles from Tesla, Polestar, and GM and increase EVs to 25% of its fleet by 2024. [7]
Hertz is the world’s third-largest car-rental firm. The competitive advantage of Hertz is its long-standing partnerships with rideshare companies like Uber. As of May 2023, over 50,000 Uber drivers had rented an electric vehicle through Hertz. Hertz is one of the top competitors for Zipcar in the US car rental market.
5. Enterprise Holdings, Inc.
Year founded: 1957
Headquarter: St. Louis, Missouri
Enterprise Holdings is a leading mobility solutions provider. The company owns Enterprise Rent-A-Car, Alamo Rent-A-Car, and National Car Rental. In Jan 2023, National Car Rental ranked first, Alamo Rent-A-Car came second, and Enterprise Rent-A-Car was third on the Trips to Discover’s Best Car Rental Company list. [8]
Enterprise has over 80,000 employees in more than 90 countries globally. The company manages 2.1 million cars through an integrated network of over 10,000 neighborhood and airport rental locations.
In Feb 2023, Enterprise Holdings partnered with Circulo Autos to provide car rental options from Enterprise Rent-A-Car, National Car Rental, and Alamo Rent-A-Car in Chile. The company now operates in over 30 countries in Latin America and the Caribbean. Enterprise Holdings is a worthy alternative to Zipcar. [9]
6. Lyft
Year founded: 2012
Headquarter: San Francisco, California
Lyft is an American mobility company specializing in rideshare services. The company entered the car-rental sector in 2019 after launching Lyft Rentals. In 2022, Lyft had around 4,400 employees.
Lyft is more similar to Uber than Zipcar. In Jul 2022, the company shut down Lyft Rentals and laid off about 60 employees. However, Lyft still operates in the car-rental sector via its partnerships with Sixt and Hertz. Customers can rent vehicles from Sixt and Hertz through the Lyft app or website. Lyft is a worthy alternative to Zipcar. [10]
7. GIG Car Share
Year founded: 2017
Headquarter: Oakland, California
GIG Car Share is a free-membership electric vehicle rental company owned by AAA. In 2019, GIG entered the Sacramento market with an initial fleet of 80 cars, but the company shut down its Sacramento operations and exited the city in Feb 2022 due to stiff competition. [11]
GIG competes against Zipcar in San Francisco and Seattle. Both are membership car-sharing services. In 2022, GIG had over 100,000 members and operated a fleet of more than 1,000 hybrid and electric vehicles.
GIG reduces mileage fees and saves time by allowing customers to return rented cars to any location within the pick-up HomeZone instead of the exact pick-up spot. GIG Car Share is one of the best alternatives to Zipcar for vehicle rentals in San Francisco and Seattle.
8. SHARE NOW
Year founded: 2019
Headquarter: Berlin, Germany
SHARE NOW is a German car-sharing service founded jointly by the Mercedes-Benz Mobility Group and BMW Group. The company serves customers in 14 European cities. In 2022, SHARE NOW had about 10,000 vehicles and more than 3.4 million customers. [12]
SHARE NOW and Zipcar operate and compete in several cities across Europe. SHARE NOW users can rent cars by minute, hour, or day via a smartphone app.
In May 2022, Free2move agreed to acquire Share Now. Free2move already operates in Washington, Oregon, Ohio, and Texas, which can accelerate SHARE NOW’s expansion into the US. This acquisition increases SHARE NOW’s competitive advantage over Zipcar. [13]
9. HyreCar, Inc.
Year founded: 2014
Headquarter: Los Angeles, California
HyreCar is an American car-sharing marketplace. The company’s proprietary technology enables ridesharing, food, and package delivery. In May 2023, Zipcar’s competitor Getaround acquired HyreCar for $9.45 million.
HyreCar established a leading presence in Mobility-as-a-Service (MaaS) by partnering with car owners, dealers, rental agencies, and OEMs. In Jan 2023, HyreCar launched the HyreCar Select program. Vehicle owners can now list and rent EVs and higher-value cars. HyreCar is a fast-growing Zipcar competitor. [14]
10. Thrifty Car Rental
Year founded: 1958
Headquarter: Estero, Florida
Thrifty is an American car rental agency operated by Hertz Corporation. Its parent company also owns Hertz Rent-A-Car and Dollar Rent-A-Car. In 2022, Thrifty had 1,061 locations.
Thrifty and Zipcar compete in the US, Canada, the UK, and Europe, but Thrifty caters to budget-conscious leisure travelers. In Feb 2023, Thrifty opened two new branches in Surrey and West Sussex, England. The company now operates 88 locations across the UK. As a subsidiary of Hertz Corp, Thrifty has the resources to compete against Zipcar in the car rental sector. [15]
References & more information
- Nguyen, H. (2023, Apr 18). Zipcar to add more EVs. Boston Globe
- Zipcar (2023, Feb 7). Zipcar expands on-street locations in New York City after a five-year pilot with the New York City Department of Transportation. PRNewswire
- Hetzner, C. (2021, Jan 11). Car-sharing site Turo becomes the first major IPO filing for 2022 following a record year for new stock issues. Fortune
- Bellan, R. (2023, Apr 11). Third-party services and hosts are freaking out. TechCrunch
- Bellan, R. (2023, May). Sharing platform with HyreCar acquisition. TechCrunch
- The Daily Upside (2023, Jun 8). Uber is getting into the Car Rental Business. The Motley Fool
- Mullaney, T. (2023, May 14). Post-bankruptcy Hertz is all-in on electric, with big implications for the EV, auto, and rideshare market. CNBC
- ARN Staff (2023, Jan 23). National Named Best Car Rental Company of 2023. Auto Rental News
- Enterprise Holdings, Inc. (2023, Feb 1). Enterprise Holdings Expands into Chile. PRNewswire
- Hicks, J. (2022, Jul 21). Lyft Rentals shuts down as the ridesharing company lays off about 60 people. The Verge
- CBS13 STAFF (2023, Feb 20). Electric vehicle rental company GIG Car Share phasing out service in Sacramento. CBS News
- SHARE NOW (2022, Jan 24). SHARE NOW closes a good 2021, reaching 3.4 million users in Europe. Sharenow.com
- Free2move (2022, May 9). Free2move Acquires Share Now. Auto Rental News
- HyreCar Inc. (2023, Jan 24). HyreCar launches HyreCar Select Program to increase the volume and diversity of car supply. Globe Newswire
- FN Editor (2023, Feb 24). Thrifty opens new branches as part of its strategic growth plan. Fleet News
- Featured image by CrowN
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