Zipcar: Reshaping our Relationship with the Automobile

Mark E. Chase
Transportation Planner/ Director of Business Development

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ABSTRACT: Zipcar is a membership organization that provides self-service car access to residents and businesses in US cities, towns and universities.The service is an alternative to owning a car in dense urban areas as well as areas experiencing chronic parking shortages. Each Zipcar serves on average 20 members and takes 7 to 10 cars off the road.This paper describes the service including member and community benefits and criteria for success.

Zipcar is a membership organization that provides self-service car access to residents and businesses in US cities.The service is an alternative to owning a car in dense urban areas and areas experiencing chronic parking shortages. The service is radically changing the way the people interact with cars.As of publication of this paper there are over 100 Zipcars serving over 2000 members in 3 cities.

Zipcars are located like ATM machines in reserved parking spaces near where people live and work.Members reserve cars on the Internet, let themselves in with a proximity card and receive a bill at the end of the month.Key differences between Zipcar and car rentals are that (1) Zipcars are completely self service.Cars can be reserved and accessed 24 hours per day/ 7 days per week.Furthermore there is no paperwork or waiting in line.(2) Cars can be reserved for as little as one hour.And, (3) rather than be located in central lots at the airport, Zipcars are spread out throughout the metro area like ATM machines.

Zipcar members use alternative means of transportation for the bulk of their transportation needs.The Zipcars are used for those trips that require the use of a vehicle such as carrying large items, visiting a family member or client in the suburbs, or taking a pet to the vet.Each Zipcar serves about 20 members, vastly reducing parking requirements improving the efficiency of urban transportation networks.Furthermore, all driving costs (depreciation, insurance and maintenance) are folded into Zipcars hourly and daily rates.Members drive far less than if they owned their own cars.

This paper will discuss how Zipcars improve the efficiency of urban transportation systems.By leveraging technology Zipcar allows dozens of people to efficiently use one car.Members love the service because it vastly reduces the costs and headaches of car-ownership in the city.Zipcar is a sustainable service that appeals to the individual, and greatly reduces the impact of the car on the environment.

Zipcar is changing the relationship between people and cars in several U.S. cities [1]. In Boston, New York and Washington DC over 2000 members are sharing over 100 cars [2]. We survey our members periodically and we have found that about half our members sell their car or avoid buying one when they join Zipcar [3].From this statistic, several important conclusions can be drawn.

Each Zipcar placed in a neighborhood takes as many as 10 cars off the road [4]. Many members join when they are thinking of buying a car or when the car they own breaks down.A Worldwatch study [5] has found that there are three parking spaces for every car in the United States.Therefore by removing 10 cars from the road, Zipcar frees up about 30 parking spaces on a regional basis.
Zipcar members drive less than they would if they owned a car.The reduction in driving is due to two major effects: 1) the cars are slightly less accessible and therefore used more appropriately (i.e. not driven to places that can be conveniently walked to); and 2) the full costs of driving become apparent making other transportation options more cost-effective.
Members join Zipcar because the service offers hassle free access to a car while reducing their overall transportation costs.

Taking cars off the road has several important implications for urban policy makers, planners and developers.When people substitute Zipcar membership for car-ownership they are more likely to shop in local in-town businesses; more likely to take transit, walk or ride a bike; generate more "choice riders" for public transportation; and generally improve the quality of urban quality of life.

When a member sells a car or avoids purchasing a car, the economics of car-use change.Whenever possible members will use public transportation, walk, or ride a bicycle to meet their transportation needs.For example, Zipcar rates in Boston run between $5 and $8/hour plus 40 cents a mile. Public transportation charges rarely exceed $4 for most trips.Bicycling and walking are virtually free.Therefore the economic signals support use of alternative transportation.Furthermore, the very people who would own a car, but choose to join Zipcar instead are the "choice riders" that many transit systems are seeking to attract and serve.

Zipcars are generally located in neighborhood centers in dense urban settings.Because all of the costs of car-ownership are folded into our hourly and daily rates, members only use the cars when they have to.When Zipcar members calculate the use of taking a car to the mall to find better prices, they often decide that buying local is more cost effective.

Large surface parking lots, traffic congestion and car-centered travel are generally seen as bad for the health of cities.Zipcar helps get people out of their cars and on to the sidewalk.Each car takes between 7 and 10 cars off the road and frees up as many as 30 parking spaces on a regional basis.Furthermore, as more people rely on public transportation, walking and bicycling, they are more likely to advocate for improved facilities in these areas.

Zipcar will not necessarily work in every community.In general two maxims apply to a successful Zipcar program.Potential members must be able to live without a car (or a second car) for the majority of their transportation needs.Typical members use a Zipcar once or twice a week for shopping, client visits or visiting a relative in the suburbs.The second key maxim is mixed use/ high-density development (New Urbanists have been touting this for sometime).The higher the density, the easier it is for Zipcars to attract a sufficient number of members to make the vehicles financially viable.Regarding mixed use, Zipcar does best when large numbers of people can easily conduct their daily needs within easy walking distance of services.

Governments, developers and community-based organizations can implement Zipcar's award winning program in their communities at very low-cost leveraging the strength of Zipcar's expertise and local partner's own organizational strengths.The program requires a modest up-front investment on the partner's part. However the program generates income for the partner when the cars are fully subscribed with members.

Zipcar's proprietary reservation, car-access and billing system.
Vehicles and insurance
Proven marketing materials and resources
24 Hour customer service for members.
Program and human resources consulting to make sure that you have the organizational resources to succeed.

The Zipcar partner pays a per-car cost based on a customized program developed jointly with Zipcar.We expect that a car will break-even between 2 and 6 months after it is deployed and subsequently become a revenue generator for the partner.

Cities and towns seeking to offer residents a low-cost transportation option.
Developers seeking to offer a premier amenity to their tenants.
Business associations with parking problems seeking to create a new association member benefit.
Universities with parking problems.
Entrepreneurs
Non-profits that want to strengthen their environmental programming.

Zipcar is an excellent substitute or addition for private business or government fleet purposes.We can add cars to an existing fleet -- reducing costs while expanding fleet capacity.We can also retrofit an existing fleet to take advantage of our hassle free car-reservation and keyless car entry system vastly increasing the efficiency of the fleet.

Months of operation: 21
Cities Served: Boston, New York and Washington DC
Cars: 96
Parking Locations: 90
Members: 2000
Member/ Car Ratio: 21 to 1
Number new member applications/ week: 75
Number of cars taken off the road [6]: 800
Number of parking spaces freed up [7]: 1600

Zipcar prides itself on its excellent customer service and personal touch. Our responsiveness leads our members to treat us equally well: in our periodic surveys of members we get uniformly good reviews. One member told us that joining Zipcar was the best decision he had made second to getting married! Favorites:

It's incredibly convenient
Instant access to car (i.e., no need to travel to rental office when open, fill out paper work, etc.)
More convenient than renting
Good cars available when/where I want them
Some car somewhere always seems to be available

Don't have to worry about car maintenance, parking, or payments.
That I can drive without having to own a car!
Ease of it!! You can use it - drive somewhere and not have to worry about PARKING!!
Freedom from car-ownership in city
Convenience without cost and responsibility of ownership

Telling people about it
Not needing to buy a car
Was able to sell my car
Its economy
Customer service
Everything you say is true

[7] Based on World Watch report: There are 3 parking spaces for every car in the U.S. In our Boston service area our estimates are that there are 2 parking spaces for every vehicle.

Zipcar: Reshaping our Relationship with the Automobile

Session: Retrofitting Transportation Infrastructure

Also from this session:

Promotes Public Transportation, Walking and Bicycling

Supports Local Business

Improving Urban Life

Zipcar Pre-requisites

Zipcar Partner Program