High gas prices a bonanza for Zipcar
High gas prices have us all feeling the pinch ($65 bucks last night for me), and as you're all well aware, many folks are changing their driving style, the amount of driving they do, or, in some cases, saying good-bye to their cars or trucks entirely. One beneficiary of people's changes of heart is Zipcar. The car-sharing service announced this week that its average monthly signups are triple what they were a year ago, with 40% of its new members citing fuel prices as the reason they've decided to join. Services like Zipcar allow people to use cars by the hour or by the day, and the vehicles are generally situated in urban areas where car ownership can be inconvenient, expensive, or, in many cases, both.
According to Zipcar (their announcement is pasted after the jump), members who opted to participate in the company's latest survey are saving as much as $600 per month by choosing the service instead of owning a car of their own. Figure in a car payment, insurance, gas budget, and garage/parking costs, and that number gets believable in a hurry, especially for someplace like Manhattan. The company also says that its members are more likely to also use public transportation as they settle into their car-free (or "car-reduced", so to speak) lifestyles, and that the environmental benefits of the service are myriad. If any readers are current Zipcar users or patrons of a similar car-share service, we'd like to know your experiences and hear how well (or badly) it has worked out for you in the comments below.
[Source: Zipcar | Photo: akseabird]
PRESS RELEASE:
In Wake of High Gas Prices and Low Car Sales, Zipcar Grows 100% During Past 12 Months
New Survey Shows Americans Ditching Cars at Record Pace
CAMBRIDGE, Mass., July 9 /PRNewswire/ -- Zipcar, the world's largest provider of cars on demand by the hour or day, today announced record membership growth. The company is averaging 10,000 new members per month, triple the number joining at the same time last year. A new survey attributes the growth to rising gas prices -- 40% of new members cited cost of fuel as their reason for joining, nearly three times the percentage cited one year ago.
The survey also demonstrates that swapping car ownership for a Zipcar membership has a significant impact on American cities and the environment. The study found that:
-- 65% of respondents said Zipcar led them to get rid of a household vehicle or halt a purchasing decision, up from 40% 12 months ago. Zipcar estimates that it has taken more than 75,000 personally-owned vehicles off the road.
-- 40% of members said that using Zipcar has led them to increase their overall use of public transportation.
-- After joining Zipcar, members reported driving an average of 2,200 miles less per year.
-- At current membership levels, Zipcar will save 16 million gallons of gasoline and 150 million pounds of CO2 annually.
-- In the midst of rising concerns about a recession, respondents reported saving more than $600 per month compared to the average cost of owning and operating a car in an urban environment, money that can be used to buffer rising cost-of-living expenses throughout the country.
Zipcar says that rising fuel costs are causing urban residents to consider alternative transportation. "The sharp increase in gas prices is a catalyst for American's to rethink car ownership in a way we have never seen before," says chairman and CEO Scott Griffith. "Thirteen million people can walk to a Zipcar in 10 minutes or less, making our service a viable, mainstream alternative to owning a personal car."
The data was collected in an opt-in survey of 20,000 Zipcar members living in Atlanta, Boston, Chicago, New York, Philadelphia, Pittsburgh, Portland, San Francisco, Seattle, and Washington, DC.
Reader Comments (Page 1 of 1)
Patrick 8:12AM (7/11/2008)
I am living in London, UK, and we have been using Streetcar (a competitor to Zipcar which are also over here) , for the past 18 months. Streetcar are I believe the biggest car sharing company here in London, and have over 700 cars dotted all around downtown and the suburbs.
We didnt own a car before joining Streetcar, but it is just much more convenient to do the weekly shop using a car than using the bus to carry everything home. I think for most Urban Dwellers, it makes perfect sense not to own a car outright. If you use public transport for your daily job commute, whats the point of having a car sitting there just collecting depreciation, insurance and tax costs.
Streetcar works great, the only hassle has been that its a ten minute walk to the next one where we live, and they are often completely bookek up for the weekends. You have to plan in advance when you are going to need a car and book accordingly.
Recently, we also converted our upstairs neighbour to the scheme, after she lost her owned car in a car crash. So car sharing is definitely growing in popularity over here as well.
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David 8:55AM (7/11/2008)
Your post states a $65 fil-up. You post on Autobloggreen. What is it that YOU are driving? What car considered green costs that much to fill-up?
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Alex Nunez 9:13AM (7/11/2008)
I drive a Mustang GT. I may post on AuoblogGreen,but I drive what I like. Welcome to America.
Yoyodyn 9:35AM (7/11/2008)
at $4 a gallon, even my 30MPG Camery costs $60+ to fill up. (I know 30MPG isnt the best out there, but for a 1999 model I feel I am doing ok)
Alex Nunez 9:59AM (7/11/2008)
Yoyo,
A 30 mpg average for a midsize car is pretty great, no matter how you cut it.
Sylvain 9:47AM (7/11/2008)
I have been a user of Zipcar in Boston for many years. It is extremely convenient when you only need a car occasionally... no worries about insurance costs, gas costs, lack of street parking where you live, excise tax etc... And there are so many models and makes to choose from (BMW, Mini, Subaru, Ford etc... from compact to sedan to SUV...), that I can always find a car I like to drive. Zipcar is a great business-model for a better, greener transportation system! Oh, and the Zipcar staff is very nice and accommodating.
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Alex Nunez 10:02AM (7/11/2008)
I live in CT, and it's not uncommon for me to see MA-tagged Zipcars around here. (Leaving concerts, etc.) Seems like it would be a great option for the large number of Boston-area college students out there, for whom keeping a car must me a small circle of hell in and of itself. A friend of mine in NYC who uses the service has only good things to say. he also likes the variety of vehicle offerings.
James Bowe 9:54AM (7/11/2008)
do as I say, not as I do. Hey he's just reporting here, he doesn't have to live the lifestyle to be informed on the latest news, right? Who knows, if gas prices keep going up, maybe he'll drop some bank on a whitestar in a couple years. That'll probably blow the doors of a Mustang anyway....
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Peter 10:04AM (7/11/2008)
The cost of the fillup does not depend on the efficiency of the car, only the size of the gas tank. And if you drive 3000 miles a year on weekends in a Mustang, you're using less gas than the average commuter in a Prius logging 12000 a year.
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Alex Nunez 10:10AM (7/11/2008)
I got the car (an '06) in December, and have put around 3,000 miles on it since then. Since it's a convertible and it's the summer, I am getting good use out of it now. Come winter, I'll probably take the train into work a lot more often, plus I telecommute 2 days a week already.
Dan 10:12AM (7/11/2008)
I love it
hahahahahaha
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CMiller 10:38AM (7/11/2008)
You have to remember that there are people that don't drive that much or can afford a new car. I drive a Liberty that is paid for. I live 3 miles from my university and 20 miles from my summer job. I would love to trade this in for a Mini or a Civic, but I can't afford it and it doesn't make a lot of sense to do so, being I don't drive alot.
Also like Alex, I do enjoy driving. Once I can afford to I would like a sports car that I can play with on the weekends, but still have a small fuel efficent car to drive daily. Not all of us can afford the $100,000 dollars for a Tesla.
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