All aboard: why Zipcar is becoming the club of choice for Londoners

Q. Zipcar originated in the States, so how did it find the transition into the UK market?

A. Zipcar was already operating successfully across the US. We are a fully owned subsidiary of Zipcar Inc, and we are supported by our shareholders and funders via our head office in Boston.

We decided in early 2007 to branch out into the UK. As we believe that London has one of the world’s biggest potential markets for car clubs, we decided to focus our efforts on growing in the capital.

Although there have been challenges coming to the UK – because we had put a lot of time and effort into making sure that our brand and service was consistent across the US – that effort has carried us well as we've established our business in the UK.

However, one big difference between here and the States is that in American cities, on every street corner you will generally find an underground car park with which you can come to a commercial arrangement with on parking. Obviously, that is not the case here in London, as the majority of parking is on street, so we have had to build strong partnerships with local authorities (LAs), getting them to really understand the environmental and economic benefits of car clubs.

Q. What is so good about car clubs?

A. There are essential factors that make car clubs a success: density; great public transport and a willingness from the city in which they operate to make them a success.

The benefit of car clubs is they can save money for local businesses and have massive environmental benefits for residents.

Research shows that 40 per cent of our members have given a car up or have chosen to defer purchasing a car as a result of joining Zipcar, plus the people who join a car club tend to reduce their mileage by 70 to 75 per cent.

Generally, when someone owns a car they think because they are paying for it, then they should use it. But, those people who join a car club tend to think about how they use it before they pay for it – so they are more likely to take the bus, walk or cycle and therefore do less miles.

Q. What are the benefits for businesses of using a car club?

A. We estimate the average business that uses car clubs, instead of owning vehicles, saves around £250 to £400 per month – and on top of that there is no hassle with administration, leasing or maintenance.
 
For companies using Zipcar we see a win-win situation; they have saved tremendous amounts of money and time, plus they are doing the right thing from an environmental perspective. We have lots of smaller companies on board that in the current climate need to cut costs.

For example, estate agents that need cars to go to viewings, for the majority of the time, the car was sat outside the office doing nothing. Now they make a reservation when they have a viewing, bring the car park and only pay for what they use.

All of our prices include congestion charge and there are no hidden extras. It's simple, it’s effective and companies can get on with running their core business without worrying about escalating costs.

Q. What partnerships have you built up for Zipcar in London?

A. We have worked hard to build good relationships with LAs across London, which has been essential to organise parking across the capital.

Transport for London (TfL) is really on board and definitely sees car clubs as integral part of a sustainable transport strategy. By 2012, TfL estimates there will be 250,000 members of car clubs across London – there are currently 50,000 and that figure is doubling annually. That is 100 per cent year on year growth. We estimate that by the end of 2012 car clubs will take 100,000 private cars off the streets of London, which is more than what the congestion charge has achieved.

Q. What are the benefits of Zipcar to your partners?

A.  Car clubs are great opportunity for LAs to take private cars off the road. We estimate that every Zipcar on the streets of London has the potential to take 20 private cars off the road.

The LAs and TfL are taking no commercial risk, it is all ours. From their perspective, they think "Zipcar knows what it is doing and we just have to facilitate demand and assist with marketing, brand awareness and ensure that the parking provision is there."

Of course they are behind it – why wouldn’t they be?  This is a real opportunity to improve congestion and for London to be the most sustainable city in the world and car clubs are a key component of a sustainable transport strategy.

Q. Are you investing in sustainable technology?

A. We are using cars to reduce car usage – so environmentally we are already doing a lot. All of our cars are new, with the most technologically advanced fuels and engines and over 25 per cent of our fleet is hybrid.

We have launched electric vehicle pilot schemes in London with Westminster City Council. The challenge with electric cars is that they need to be plugged in and they have a limited range so we have to be careful that we can still deliver our standard customer experience and try not to mess around with that for the sake of reducing emissions. It’s a revolutionary process, but there is a future, we believe, for electric and that is why we are keen to learn from these pilots.

Q. And what about the future for Zipcar?

A. We are looking at the potential of offering our know-how to other vehicle fleets. For example, there are lots of organisations with large fleets standing idle at night and at weekends, such as local authority vehicles. We are currently running a pilot in the States with the city of Washington to see if there is potential for its vehicles to be used by residents at times when they would otherwise not be used.

But, at present in the UK, our work is most focused on continuing with our work and delivering on our 100 per cent year on year growth.

Related Content
Green and Environmental Interviews
Green and Eco-Friendly Cars

Related Sites
www.zipcar.co.uk