FlyerTalk Forums - View Single Post - ZipCar - Prices not very competitive?
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Old Feb 25, 2014, 3:22 pm
  #3  
CTNYC
 
Join Date: Dec 2013
Location: Washington, DC
Posts: 785
Originally Posted by randix
In China with the government backing, there's automated vertical garages that are going up and will be going up everywhere (similar to bicycle rentals), that contain EV's that are currently rentable for about $3/hr...it exists because China is concerned about their terrible smog and pollution and it fears its growing middle class will only make the situation worse unless something is done, so they're doing something about it with subsidies, limiting new issuance of licenses, and encouraging Chinese EV manufacturers to enter the marketplace. It also provides an easy solution for its people who want to enter the middle class and can't afford a TSLA, etc.

In this country I find it highly unlikely that the owners of the major car rental companies will provide any car share situation that would be competitive or destructive of their market share. I've looked at Zipcar and in the places I travel, it makes zero sense.

So to answer your question with my opinion, I do not hold out any high hopes with car sharing in this country; unlike China, I question if the bulk of the population would participate in car sharing to really make it effective, although there are studies, etc., that show young people are increasingly comfortable in not owning a car. I just don't have any confidence that the major car rental companies which have shown so little creative marketing and organization, are going to provide any options that "folks" like me would find efficient or make sense, financially.

As a very frequent renter of cars over the past 10 years, car renting has changed remarkably little, the pricing to them may have an underpinning of logic, it has always escaped me. For companies that lack so much imagination, I have zero confidence they could ever build an effective car share situation. Course then I look at a company like Hertz that is an arm and leg above every other car rental company, but I have no expectation that as they implement their car share "solution", it will ever make financial sense for me, or efficient.

Color me pessimistic.
Hmm - That is really interesting about the subsidies in China.. Being a younger person (19 years old in college) I personally do think that owning a car in a major city is a luxury that can easily be avoided with services like Zipcar. While the pricing is too high for frequent or long-term use, it is convenient to be able to get a car located near me (20ish cars available in a 3-4 block radius from me) when I need it for say 30 mins to an hour. By choice, would I want to have my own car in a city? if I can afford it, absolutely, is it a luxury, definitely...

But in the end I don't really know how much carsharing will catch on... Maybe they can implement this kind of technology at regular car rental agencies so that they have a lot full of cars at the airport that you can specifically reserve, and get rid of the counter agent, gate agent, and check-in agent nonsense... Seems like Hertz is moving in this direction with its Kiosk locations in NYC, although I don't exactly know how they work
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