The urban car-sharing cult Zipcar is planning to sell shares to the public with hopes they won’t go flat in the rough economy.
The discount car provider has grown rapidly from just a single Volkswagen nine years ago into a national fleet of 6,500 economy cars that can be rented for $13 an hour.
Zipcar’s business model has cut deeply into sales of other commercial car-rental firms, prompting Hertz to launch a 1,000-car rival in the Big Apple.
Analysts say the market for cheap rentals in the weak economy is apparently much stronger than the market for initial public offerings, which is down 90 percent — its worst drought in four decades.
Zipcar CEO Scott Griffith said the offering, which is set for next year and yet to be priced, will buck the lousy market.
“We’re succeeding and we’re growing in a year where flat is the new up,” said Griffith. He predicted its sales this year of $120 million will swell to $1 billion within a decade.
Customers currently pay an annual $50 membership, entitling them to rent cars for $13 an hour, or $90 a day.
Zipcar has about 300,000 members in 28 states, Canada and the UK.