High demand and strong success for Zipcar rentals in the Champaign-Urbana area led the car-sharing company to expand its services locally last week.
The Boston-based company expanded its fleet on and around campus from nine to 12 cars and added one new location for checkout.
One of the three automobiles is in a new location on Euclid Street in parking lot E-20 next to the Ikenberry Commons. The other two cars went to two already existing locations: the intersection of Illinois and Goodwin streets and Lincoln Square in Urbana.
University Facilities and Services accommodated part of the expansion. In an e-mail interview, Morgan Johnston, sustainability and transportation coordinator for Facilities and Services, said the University was more than willing to help by giving some of their parking spaces to Zipcar.
Johnston said the school is “very interested in providing sustainable transportation options for their residents.”
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Greg Winter, vice president of communications for Zipcar, said the expansion was due to high demand and enthusiasm for the company’s services. In 2008, Zipcar posted a revenue of $106 million, and 2009 saw revenues hit $131 million. Early estimates for the first half of 2010 project another strong year, with revenue close to $80 million for the first six months.
The University is one of more than 225 college campuses where Zipcar is present. He said college students are one of Zipcar’s largest customers.
“College campus arenas are where we’ve seen the greatest growth,” Winter said.
Only people with memberships to Zipcar can check out these rentals, though. According to the Zipcar website, in order to sign up, a person must pay an annual fee and application fee. Once approved, applicants should expect to receive their “Zipcard” by mail within a few days. The card allows access to the Zipcar rentals. Before use, one must reserve an automobile through the Zipcar website or by phone; rental rates are on average $8 per hour or $66 per day.
Winter said a membership with Zipcar is a great cost-cutting service for those who need an automobile but may be cash strapped, and the membership works anywhere Zipcar is available.
According to the Zipcar website, Zipcar offers its services in various cities including Chicago, New York and London, among others.
However, Jan Kijowski, marketing director for Champaign Urbana Mass Transit District, said although the service has been successful here, Zipcar was hesitant to come.
“Zipcar did not want to start a service here,” Kijowski said. “The four partners (cities of Urbana and Champaign, CUMTD and the University) worked closely to bring them to the area.”
Kijowski said Zipcar wanted assurance that a minimum revenue goal would be made as soon as possible when it arrived on campus in early 2009. The company achieved that goal in the last quarter of 2009 and first quarter of 2010, sooner than anticipated.
“The great success it’s had, the service is now surviving under its own merit,” Kijowski said.