![]() “If usage meets our expectations, it will continue to grow.If mergers and acquisitions are any indication of future trends, it looks like the car-sharing sector could be on track for massive growth. “I think it’s going to be a nice option for our members that are traveling into Los Angeles,” Shields said. Operations also launched recently at airports in New York, San Jose, Atlanta, Austin, Texas, Philadelphia, Phoenix, Palm Beach, Fla., and Toronto. Jeff Shields, ZipCar’s general manager for the Los Angeles market, said moving into airports was a logical next step. The company also folds in the cost of gas and insurance into the rate. The company owns its fleet, but the options tend to have a bit more character than the typical rental: Members can snag models ranging from BMWs to pickup trucks to Mini Coopers. “Įven though ZipCar is now part of Avis, it too appears poised to try to make car rental a more humanizing experience. We compete against the most competitive rates but we can’t always be the lowest. “You are also reinvesting the money in the community you are traveling to. Hubber’s rental rates will not necessarily undercut the bigger companies, but Davis said that’s not the point. The company, which also will launch soon in San Francisco, will take a cut of the profits and make sure the car is insured for the temporary driver. Hubber will ensure the car is clean and has gas when the owner returns to LAX. ![]() Meanwhile, Hubber will seek a renter to use the car while the person is out of town. They’ll then take a shuttle bus to the terminal and catch their flight. If all goes according to plan, starting later this month customers will take their cars to an airport parking facility near LAX. Hubber’s success likely will hinge on how many Angelenos decide to list their cars with the company, which promises to make the process as easy as possible. You find that demographic more accepting of a shared economy. “Younger people are more apt to embrace this now. ![]() “I think it’s kind of a generational shift,” said Paul Davis, the 35-year-old founder of Hubber. Though the new companies have considerable differences in their business models and ownership structures, executives at both suggest they’re more in the car “sharing” business than the car “renting” business. But ZipCar and Hubber could represent a shift in how renters obtain cars. Hubber, which launches May 28, suggests on its website that out-of-towners will soon be able to rent an Audi A4 luxury car for $60 a day.Ĭombined, the two new entrants will be tiny players in the market, which has for decades been the domain of companies with worldwide reach, like Avis and Hertz. The other option is an edgier startup called Hubber, which connects visitors to Los Angeles with residents who want to rent out their cars to make extra money. Earlier this year, Avis Budget Group purchased ZipCar in a deal worth a reported $500 million. Now, members can pick up one of five cars available at the Avis car rental facility near LAX. Usually, ZipCar members search online for available cars and go pick them up from designated parking spots in dense neighborhoods, often driving them for only a few hours at a time. ![]() One is an extension of ZipCar, the car-sharing service popular in many cities, including Los Angeles. Two companies new this month to Los Angeles International Airport hope so. Is the car rental industry, for years dominated by a handful of major corporations without unique identities, finally ready for a change in its business model?
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