Zipcar and Flexcar announced they’re merging in a move that beefs up their networks and could push the idea of car sharing more firmly into the mainstream.
The combined companies, to be called Zipcar and based in Boston, will have a fleet of more than 5,000 vehicles and 180,000 subscribers in 48 cities including Toronto and Vancouver, making it the largest car sharing company in North America. It is funded by private investors and there are no plans for the time being to take the new entity public, said Scott Griffith, the new company’s CEO.
“Our capital needs are sufficient now to run us now well beyond the integration cycle that we’re in,” said Mr. Griffith, a former engineer with Boeing Co. “Frankly, we haven’t made any plans beyond that to raise additional capital. It’s something we’ll be responding to more next year than now.”
Zipcar could be profitable, but is not at the moment, because it is investing heavily to expand, its executives said. The company is targeting urban dwellers who don’t need a car seven days a week, as well as college campuses, where parking space is often in short supply.
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