Zipcar. The sharing myth.
Zipcar is pulling out of the UK. It looked like tech, but it was cars, fuel, cleaning and parking.
THE GIST ON ZIPCAR: "The Sharing Myth"
Why is Zipcar leaving?
Zipcar is pulling out of the UK after struggling to make the economics work. It only makes money when the cars are constantly in use, because the costs run 24/7.
Why isn't it a tech business?
Car sharing brands itself as tech, but really it's logistics. Every booking depends on the car being in the right place, fuelled, cleaned, undamaged and returned on time. One late return can knock on to the next three bookings. Customers treat it like a public utility, but the company carries the full cost of keeping it reliable.
Who wins in sharing?
Usually the middlemen. Platforms can stay light, but fleet operators can't. And if cities don't make car sharing easy with allocated parking and permits, the economics get slammed however well it should work.
Would you give up owning a car?
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Quick answers
Why is Zipcar leaving the UK?
It struggled to make the economics work.
What makes car sharing hard?
Cars must be in the right place, fuelled, cleaned and returned on time, and costs run 24/7.
What helps?
Cities making car sharing easy with allocated parking and permits.
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