Zipcar is an American car-sharing company owned by Avis Budget Group. Zipcar allows members to reserve cars near them for short periods, such as by the hour or day. Members may need to pay a monthly or yearly fee, in addition to costs for using the cars. Gas, car maintenance, insurance options, and a special parking spot are included in the service. Zipcar was started in 2000 by Antje Danielson and Robin Chase.

In the third quarter of 2007, Zipcar joined with Flexcar, a car-sharing company based in Seattle, to form a nationwide car rental company. The company went public in April 2011, and its stock was sold on the Nasdaq stock market under the symbol "ZIP" until Avis bought Zipcar in 2013.

On March 14, 2013, Avis Budget Group purchased Zipcar for about $500 million. Scott Griffith, who had led the company for 10 years, left the company the day after the purchase was completed and handed leadership to Mark Norman. In early 2014, Kaye Ceille became Zipcar’s North American president. In 2016, Ceille became a managing director for Avis Budget Group International, and in 2017, Tracey Zhen was named president. Angelo Adams became the head of Zipcar in 2022.

In September 2016, Zipcar announced it had 1 million members in 500 cities across nine countries, with nearly 10,000 vehicles.

Members can join and reserve cars through Zipcar’s mobile app for Android or iPhone devices or online. Once approved, members can book cars up to a year in advance. Members have access to cars 24 hours a day, seven days a week, by using Bluetooth on their app or an access card to unlock the car’s door. The keys are already inside the car. Members can also use the app to find, reserve, and locate a Zipcar by making it honk its horn, extend or end a reservation, or cancel it.

History

Zipcar was co-founded by Antje Danielson and Robin Chase in January 2000, inspired by German and Swiss companies. In June 2000, the first Zipcars began operating in Boston, Massachusetts. In January 2001, Danielson was removed from her position after Chase asked the Zipcar board to allow her to make hiring and firing decisions without their approval.

In September 2001, Zipcar opened an office in Washington, D.C., and a New York City branch followed in February 2002. In February 2003, after facing challenges in obtaining more funding, the Zipcar board replaced Robin Chase as CEO with Scott Griffith. In July 2005, Zipcar received $10 million in funding led by Benchmark Capital. In August 2005, a San Francisco office opened. In May 2006, a Toronto office opened, and General Electric’s Commercial Finance Fleet Services provided Zipcar with $20 million in lease line financing. In September 2006, Toronto became the fastest-growing new market in Zipcar’s history.

In November 2006, a London office opened. In April 2007, a Vancouver office opened. In October 2007, Zipcar and Flexcar executives announced a merger, with Zipcar’s brand and headquarters replacing Flexcar’s.

On January 23, 2008, the merged company canceled service in Los Angeles and San Diego without warning customers, though college operations in Southern California continued. On July 11, 2008, Zipcar announced it had doubled its membership in the past year, including Flexcar members, and now had 225,000 members. In August 2008, Rice University joined Zipcar as part of its effort to reduce carbon emissions and provide transportation options. In June 2009, Zipcar introduced an iPhone app that could honk a car’s horn and unlock some vehicles.

After strong third-quarter results, Scott Griffith announced that 2012 would be Zipcar’s first full year of profitability under U.S. accounting rules. Griffith left his position on March 15, 2013, after Avis Budget Group acquired Zipcar. Mark Norman remained as president until February 2014, when Avis Budget Group named Kaye Ceille as Zipcar’s new president, and Mark Norman left to pursue another career. In July 2016, Kay Ceille became managing director of Avis Budget Group International in Australia. On January 5, 2017, Zipcar announced Tracey Zhen as its new president, who previously worked at TripAdvisor. On September 27, 2020, Zipcar named Angelo Adams as its new head.

During the COVID-19 pandemic, Zipcar experienced major changes in demand, with a drop in March 2020 and a rise in May. The company had removed cars from the road and struggled to meet demand, causing delays at the customer service center. Some customers found no car at their reserved parking spot, and others were left without transportation and unable to contact customer service. President Tracey Zhen apologized in June, stating the company was adding cars and hiring more customer service staff. By that month, membership applications in New York City were 70% higher than in June 2019. An anonymous employee told CNN that problems worsened after the company laid off more than 20% of its workers and changed call centers.

On December 1, 2025, Zipcar emailed members to announce plans to stop its UK operations, with service suspended starting January 1, 2026, pending results from employee consultations about job losses.

Membership

Members can check which cars are available and reserve a self-service vehicle through the internet, Android, or iPhone apps, or by phone. Reservations can be made in time periods as short as 30 minutes. Members only pay for the time they use. Zipcar cars use technology inside the vehicle to send their location to a control center.

In the United States, each reservation allows members to drive up to 180 miles (290 kilometers) during a 24-hour period. If the member drives more than 180 miles, they are charged $0.45 per mile ($0.55 per mile for premium vehicles and cargo vans) during the same 24-hour period. If the rental lasts longer than 24 hours, members get 180 miles (290 kilometers) for each 24-hour block. They also receive 20 miles (32 kilometers) for each additional hour of the reservation until the 180-mile limit is reached. If the total miles exceed 180, the member is charged $0.45 per mile ($0.55 per mile for premium vehicles and cargo vans).

In Canada, each reservation allows members to drive up to 200 kilometers (120 miles) during the first 24 hours. If the member drives more than 200 kilometers, they are charged $0.30 per kilometer (up to $0.45 per kilometer for premium vehicles and cargo vans). If the rental lasts longer than 24 hours, members get 200 kilometers (120 miles) for each 24-hour block. They also receive 15 kilometers (9.3 miles) for each additional hour of the reservation until the 200-kilometer limit is reached. If the total kilometers exceed 200, the member is charged $0.30 per kilometer (up to $0.45 per kilometer for premium vehicles and cargo vans).

Members can choose between two plans: the "Occasional Driving Plan" or the "Extra Value Plan." A Zipcar reservation includes vehicle insurance and a gas card. Members can use a Zipcar in any city where Zipcar operates.

Fees

In 2009 and 2011, Zipcar faced lawsuits from customers who claimed the company charged unfair or hidden fees. The lawsuit mentioned several hidden charges, such as a fee for speaking to a customer service representative when a problem could not be resolved through the website or phone system, extra charges added to the cost of a parking ticket even if the ticket was canceled by a court, late fees starting at $50, a charge for retrieving items left in cars, and a fee for not using the service for a long time. The complaint stated that many customers might not know about these charges because Zipcar does not send monthly bills. The lawsuit was ended in 2010 when a judge ruled that all penalties except the inactivity fee were legal. In August 2016, Zipcar agreed to settle a case involving claims that it charged New York customers illegal fees for vehicle damage. New York’s Attorney General said state law requires rental car companies to allow customers to challenge damage charges before they are applied. The office claimed Zipcar sometimes charged customers for damage before giving them a chance to dispute the claim. As part of the settlement, Zipcar will refund damage fees for customers who disputed the charges and pay $35,000 to the Attorney General’s Office for costs. Zipcar is also not allowed to charge customers for damage unless the customer agrees they are responsible or a court decides the driver is at fault. As of September 25, 2018, Zipcar was not accredited by the Better Business Bureau and had an average one-star rating from the BBB due to many complaints about misleading business practices.

University, organization and business partnerships

Zipcar started its Zipcar for Business program in early 2004 to offer discounts to companies for driving on weekdays. Since the program began, Zipcar has signed agreements with 10,000 small, medium, and large businesses. This is because more companies are choosing Zipcar’s car rental service that provides vehicles when needed as a way to save money on employee travel. Zipcar has also partnered with more than 600 colleges and universities in North America.

Zipcar fleet

Zipcar provides over 50 different types and models of vehicles. Each vehicle has a home location, which is a reserved parking space on a street, driveway, or neighborhood parking lot in the member's area. The vehicle must be returned to this location at the end of the reservation. Information about the locations of all Zipcars and the models available there can be found on the Zipcar website. As of 2019, Zipcar has a fleet of more than 12,000 vehicles. The types and models of vehicles available vary by location. For example, on college campuses, most Zipcar vehicles are economy, hybrid, and full-size cars. Members can choose the exact type and model they want from the list of available vehicles online or through the Zipcar smartphone app.

Most Zipcar vehicles have decals with the Zipcar logo. Each vehicle has a "name" that helps the renter identify their specific vehicle. Zipcar offers vehicles in different categories, such as economy cars, electric vehicles (EVs), hybrid vehicles, full-size cars, luxury vehicles (such as those from Audi, BMW, Mercedes-Benz, and other luxury manufacturers), SUVs, pickup trucks, and cargo vans. A Zipcar vehicle will not unlock for the renter until their exact reservation time. Renters unlock the vehicle (both at the beginning of the reservation and throughout the rental) by holding their Zipcar membership RFID card or smartphone against the upper corner of the vehicle's windshield. The vehicle's keys are always tied to the steering column and stay inside the vehicle at all times. A Zipcar "Copilot" guide is in the driver's side sun visor. It includes a complimentary refueling card (gasoline card), insurance information, the vehicle registration card, and details about the vehicle, rental policies, and procedures.

Zipcars have RFID readers on the windshield that communicate with the card to lock and unlock the doors. Each vehicle records hours of usage and mileage, which is uploaded to a central computer via a wireless data link. The location of the vehicles is not tracked during a reservation for privacy reasons, but they can be tracked if needed. All cars are equipped with a "kill" function that allows the company to stop the car from starting if it is stolen. Zipcar also provides the technology it uses in its vehicles as a service called FastFleet.

During a rental, members can use the Zipcar smartphone app to interact with their rented vehicle. The app helps locate the car in a parking lot, including GPS location, and allows users to sound the horn and flash the lights. It also lets them unlock or lock the vehicle.

Zipcar partners with Honda to offer clean fuel and low-emission vehicles, including the Insight hybrid, Civic Hybrid, and Honda Fit EV electric car. Vehicles such as the Toyota Prius are also available.

In the United Kingdom, some vehicles are labeled "Zipcar Flex," meaning they can be parked anywhere in a designated area instead of a specific spot. Other vehicles are labeled "Zipcar Roundtrip."

Sedans:
• Toyota Corolla
• Chevrolet Malibu
• Ford Focus
• Ford Fiesta
• Nissan Sentra
• Honda Fit
• Honda Civic
• VW Jetta
• Hyundai Elantra
• Kia Forte
• Subaru Impreza

Hatchbacks:
• VW Golf
• Kia Soul
• Subaru Impreza
• Honda Civic
• Mazda 3
• Ford Fiesta

Luxury Vehicles:
• Mercedes-Benz C-Class
• BMW X3
• Mercedes-Benz GLC

SUVs:
• Kia Sorento
• Mitsubishi Outlander
• Honda CR-V
• Subaru Crosstrek
• Mazda CX-5
• Kia Sportage
• Honda HR-V
• Toyota 4Runner
• Ford Escape
• Ford Edge
• Nissan Rogue
• Jeep Wrangler
• Toyota RAV4
• Hyundai Santa Fe

Pickup Trucks:
• Nissan Frontier

Cargo Vans:
• Honda Odyssey
• Toyota Sienna
• Dodge Grand Caravan

**Other

Expansion

On October 31, 2007, Zipcar and Flexcar announced they would combine their companies. The new company kept the name "Zipcar" and was based in Cambridge, Massachusetts. Scott Griffith, Zipcar’s chief executive officer and a former engineer at Boeing in Seattle, became Chairman and COO. Mark Norman, Flexcar’s chief executive officer, became president and Chief Operating Officer. The merger brought together Zipcar’s 3,500 vehicles in 35 markets with Flexcar’s 1,500 vehicles in 15 markets.

In December 2009, Zipcar joined a funding round with Avancar, Spain’s largest on-demand car rental company based in Barcelona. As part of the agreement, Zipcar purchased a small share of Avancar, placed one of its executives on Avancar’s board, and received the right to increase its ownership within one year. In April 2010, Zipcar announced it had acquired Streetcar, a car-sharing club in London. In December 2010, Zipcar extended its ownership option for another year until the end of 2011 and gave Avancar a loan that could be changed into company ownership shares if Zipcar chose to increase its stake. On October 17, 2012, Zipcar completed its integration with Avancar. On January 22, 2019, Zipcar (Avancar) members were informed that the service would end on February 28, 2019. The company stated on Facebook and Instagram that Avis had decided to stop the service in the Spanish city.

Since 2014, Zipcar has begun offering services in cities across North America, Europe, and Asia.

Insurance

Zipcar offers insurance coverage for members who are 21 years old or older and joined after March 1, 2015. This coverage includes $100,000 for injury to one person, up to $300,000 total for injuries in an accident, and $25,000 for damage to property in an accident. If a member is at fault in an accident, they are responsible for paying the first $1,000 of repair, recovery, or loss of use costs for a Zipcar vehicle. Members may choose to buy an extra insurance option called no-liability insurance for $79 per year. If an accident occurs and it is unclear who is at fault, such as in a hit-and-run, members must still pay the first $1,000 of these costs. Members under 21 years old receive insurance coverage that meets the minimum requirements set by their state.

Zipcar has faced some criticism for providing lower coverage limits. Insurance coverage amounts may differ based on the location where the vehicle is used. For example, members in Toronto, Ontario, Canada, receive $1 million in liability coverage, while members in Vancouver, British Columbia, Canada, receive $2 million in liability coverage. In both Canadian regions, comprehensive and collision coverage is also included with liability insurance. Before February 2018, members traveling from the U.S. to Canada needed a special insurance card from Zipcar. However, this is no longer required. Canadian Zipcars traveling to the U.S. now do not need this extra card.

Similar to U.S. members, Zipcar members in London, UK, must obtain a special "vehicle on-hire" certificate from Zipcar when traveling abroad. This certificate is required for use in other countries.