Americans love their cars. So what would it take for people to actually get rid of their vehicle? Today, more people seem to be faced with a tug of war between the dichotomy of owning their independence and the fear of rising costs that could sacrifice their independence. Add in social pressures of global warming and fossil fuel consumption, and auto owners are climbing the walls for a way to maintain the lifestyle that they have grown accustomed to while still being able to get to sleep at night. Is there a way to keep your independence without breaking the bank, crossing a picket line, or having to move your vehicle every other day because of street cleaning? What would it take for people to actually get rid of their car? Zipcar CEO, Scott Griffith found that the answer to this question could no longer be ignored.
Ideas generated out of disruptive innovation are generally so different from anything else that has come before it, that they are often mistaken for a bad idea or seen as something so far fetched that it would never work. How supportive were people with the idea that a man made engine could actually outperform the trusty horse and buggy and one day make it obsolete? One hundred years later, Zipcar CEO, Scott Griffith has taken an idea that many thought could never work in America and found a way to make not owning your own car, sexy, convenient and cool. By looking down the barrel of many generations of American tradition where owning a car has been synonymous with freedom, Zipcar has been able to answer the question, "What would it take to get rid of your car," with a business model that creates a compelling reason for urban people to do just that.
With over 200,000 members all paying $50/month to access cars in over 50 cities across the US and UK, Zipcar has earned over $100 million in revenue this year alone. With those numbers increasing each month, Zipcar has its sights set on cruising into the fast lane with 2 million customers and $1 billion in revenue. Griffith and Co. have been able to use human observations about how people use and view car ownership and translate them into a compelling brand experience that has convinced 40% of their customers so far to get rid of their existing car, and rely on the Zipcar service as their primary mode of transportation.
This business model aims to provide customers with the positive attributes that are associated with owning a car, such as convenience, spontaneity, and the excitement of driving, while eliminating the possible deal breakers for many, such as insurance, maintenance, gas, and parking. Zipcar customers aren't the only ones with a smile on their face. Environmentalists have recognized that Zipcar is doing its part to help save the environment by eliminating the total number of cars on the road. For every one Zipcar that is on the road, six cars are taken off the road, drastically reducing the overall footprint that car drivers have on the world.
So let me ask the question again. What would it take to get rid of your car? For urban drivers, being able to have the freedom and convenience of owning a car, no longer needs to be sacrificed with the rising cost of ownership. Oh yea, and did I mention that for $50 a month and $11 an hour, you too can walk two blocks from just about anywhere, wave your Zipcar membership card in front of Zipcar branded Mini Cooper or BMW and never have to pay for insurance, parking, or gas?
