Hourly car rentals not the answer for everyone

Zipcar and other similar car-sharing programs are gaining momentum, but industry experts indicate that they are not likely to meet the needs of all car rental customers.

However, Zipcar’s projected revenues for this year are $130 million, meaning that the car-sharing operator is doing well, while most traditional rental car companies are struggling during the recession. Currently, Zipcar reports having 300,000 members around the world.

Boston-based Zipcar remains the uncontested leader in what is seen as a potential $12.5 billion sector in which vehicles are rented by the hour – rather than by the day. In 2010, Zipcar has indicated that it will add service in two more cities, increasing its current 13-city roster. According to the company’s CEO Scott Griffith, growth of 15-25 per cent is anticipated in the next five years.

Other hourly rental companies, such as Daimler’s Car2Go, Mint and U-Haul’s U Car Share are sprouting up in the US and Europe. Some of the reasons cited for the growth of the sector are the faltering economy and a changing view about transportation.

Griffith said: “It’s exciting to be able to tell an up business story in a year when many of the other businesses are either flat or down.”

Industry experts assert, however, that although car-sharing is on the rise, that trend doesn’t mean the concept is the right one for all rental customers.

Thanks to www.forbes.com for the above quotes, for more information on this article please visit their website.