Zipcar muscles in on Autoshare turf
Cambridge, Mass.-based carshare company Zipcar Inc. is expanding into Canada, announcing this week it is launching service in Toronto. The company currently offers 1,500 vehicles throughout 10 U.S. states to 55,000 members. By the end of May, the company said it will conveniently located 50 of its cars around Toronto. Many of those cars are fuel-efficient Minis or Prius Hybrids, but the company carries 20 different models overall.
Rates in Toronto start at $9.50 (Canadian) per hour and $60 per day, with gas, parking and comprehensive insurance included.
The entry of Zipcar means new competition for Toronto’s Autoshare, which provides cars at more than 60 locations throughout the city. Like Zipcar, Autoshare also carries Minis, Prius Hybrids, but also the Civic Hybrids, Smart Cars, and other compacts such as the Suzuki Aerio (which I own and love), the Toyoto Yaris and the Honda Fit.
The two have slightly different pricing models. If you want to share by the hour and drive a short distance, Autoshare is cheaper. But you’ve also got to pay a small monthly membership fee with Autoshare, so depending on how much you use the car that could make it more expensive. Zipcar, on the other hand, seems to offer a much better deal for 24-hour rentals.
The competition is good, and the fact there is competition means people are using these services — also good news.
Tyler Hamilton is senior energy reporter and columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the cleantech market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper. Tyler can be reached at tyler@cleanbreak.ca
May 13th, 2006 at 9:45 pm
Actually, AutoShare is much cheaper, even on 24 rates. I pay $42/day plus $0.10/km. So even if I factor in the 150km that zipcar includes, it’s cheaper to use AutoShare (note, I hardly ever use 150km, so it’s better for me to pay by the km. Also, zipcar charges $0.25/km for trips longer than 150km, try going to Niagara falls and back with that kind of pricing.
May 14th, 2006 at 8:20 am
I have been considering joining Autoshare but an going to go with Zipcar because I am not crazy about the monthly fees and the deposit. I do think it is great to have choice and hope both companies do well
May 15th, 2006 at 8:26 am
Even with the monthly fees, it is ‘much’ cheaper to use AutoShare (I did the math). AutoShare has a plan too (Simple?) with no monthly fee and small annual fee (versus larger annual fee for zipcar). Call me crazy, but I stick with local Canadian companies when possible.
July 6th, 2006 at 11:38 pm
I went with ZipCar as well for a number of reasons:
- Full G license is not required (I have G2) unlike AutoShare
- ZipCar: $35 application fee and $50 credit (promotion) + monthly committment credited towards service usage, Autoshare: $107 membership fee + $250 deposit + monthly fee
- I don’t drive often (1-2 days a week), but when I do, I drive a lot. The included 150 km is perfect for me.
Used zip cars three times now, so far so good…
September 6th, 2006 at 12:10 am
Canadian, for sure!!
September 6th, 2006 at 12:14 am
I Agree!!!!!!
December 1st, 2007 at 5:23 pm
I would go with autoshare if they would shop around for better insurance. Being 22, I can’t sign up with Autoshare… and if I’ve already signed up with zipcar and I’m happy with them, I’ll likely just stick with them rather than try with Autoshare.
I hope autoshare realizes that young students who are likely to be strong car-sharing users are going to go with zipcar when they turn 21, and probably not turn back. Hopefully they’ll either find an insurance provider willing to accept 21 year olds (they MUST exist, since Zipcar does), or go bankrupt and get bought out by zipcar, like flexcar did (then I’ll have more locations:))
May 4th, 2008 at 11:27 am
Liability coverage: It appears to me that the comments made are focusing on the tree and missing the forest. An analysis of net costs when using Zipcar vs Autoshare is but one component of the decision. I have not seen one consideration of what happens when you are involved in a serious accident. For example, you drive through a red light and strike another vehicle with 3 occupants, all of whom sustain significant injuries. With Zipcar, politely put, you are screwed. Zipcar = $200,000 liability, Autoshare = $2,000,000 liability + includes “family protection” and “uninsured” motorist coverage.