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Zipcar: A Big Growth Opportunity?

Zipcar (Nasdaq: ZIP  ) seems by all accounts to have enormous potential as a disruptor to the traditional rental car industry. The company's position in the market, focusing on short-term regular rentals, is a more affordable approach for people in urban or college settings, who can't afford to own a car, or don't want the inconvenience of keeping one. However, shares fell dramatically after the company's initial IPO, and growth has been slow. Can this company live up to investors' hopes? contributor Molly McCluskey not only says it can, she thinks that what Zipcar provides is in tremendous need. The company has a big first-in advantage, and with so much room to grow in the market, investors will see the growth they are hoping for.

Is Zipcar's crashing share price a sign to abandon ship, or should you back up the (rental) truck and buy more today? Our top Zipcar analyst will help you answer that question and tell you what everyone is missing about Zipcar today in his premium research report on the company. Click here now for instant access.

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  • Report this Comment On December 04, 2012, at 9:37 AM, jameskm03 wrote:

    I believe ZIP is a disrupter but comparing it to AMZN is a huge stretch. In 12 years it won't be as large or dominate as AMZN... It just won't.

  • Report this Comment On December 06, 2012, at 3:48 PM, mrbkush wrote:

    Ahem. Amazon as a comparison is ridiculous.

    ZIP isn't expanding nor is it going to expand in a way similar to Amazon. The capital needs for ZIP are overwhelming and they unlike Amazon have established competitors in the business.

    Not only that but new competitors are moving into the business; example Car2Go which currently serves several cities in NA. They just added Seattle.

    What is changing the industry is a ready availability of smart phone technology allowing "Unattended Car Rentals" (UCR), which will revolutionize the industry.

    Avis, Hertz and the industry behemoth Enterprise already offer short-term rentals (thanks for not calling it car-sharing) and UCR will soon be available by them everywhere.

    Hotels, downtown garages, transit stops, train stations will have cars available for hourly or daily rentals. The companies will be able to reduce store staff and spread cars across wider areas.

    U-Haul already has U-Cars coming to their neighborhood locations. Enterprise with their 5000+ locations have more locations than ZIP.

    For errand running carless people should check out E for weekend bargain rental rates - much better deals than ZIP.

    Molly when taping pick out a spot near the camera lens and focus on it.

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