Zip-Car Still in Cool

I know your first reaction when I mention and post about Zip-car. Probably, your face would tell like that 'Again?' and 'Not cool any more'. But, I definitely can say that Zip-car is still hot especially in the  real competitive car rental market situation. 

In fact, the rental car market is under the challenge of low margin and the fight for hegemony to maintain the customer's first contacts  with online travel site. As a result, most of rental car companies have lost their money recently and their sale sizes have fluctuated. 

However, Zip-car sales's growth has token double digit numbers every quarters since the company went public in 2011 unlike competitors. For profit issue,In the last 4Q of 2012, this company reported a profit of $13.8 million surpassingly while Hertz and Avis lost $ 36 and 40 million contrastively as the WSJ report. (http://online.wsj.com/article/SB10001424127887324616604578305954183967238.html)

But, revenue and profit are just one part of their great achievement. The real matter is their fantastic performance. They earned twenty  thousand US dollars from each car, almost double than other competitors, in 2012. In fact, leading company Enterprise holdings just made approximately twelve thousand dollar and Hertz and Avis did as much as fifteen thousand and eleven. (From 2012 U.S. CAR RENTAL MARKET by Auto Rental News : http://www.autorentalnews.com/fileviewer/1650.aspx)

Overall, we think that social companies seem like unstable and inefficient. So, we more care about how to support these social ventures. Nevertheless, Zip-car has proved that real social innovation could beat social effect and business sides at the same time.