Seeking Alpha

Whoa! Zipcar (ZIP) opens at $30.50 (+70%) after pricing at $18.

Whoa! Zipcar (ZIP) opens at $30.50 (+70%) after pricing at $18.
Comments (5)
  • spald_fr
    , contributor
    Comments (2700) | Send Message
     
    Among Zipcar's venture capital investors are Steve Case's Revolution Living, which will own more than 17 percent of the company after the IPO, Benchmark Capital, Greylock Partners and Smedvig Capital, which planned to sell shares in the IPO.

     

    The company has incurred losses every year since its creation, mounting to an accumulated deficit of $65 million in 2010, according to a filing with U.S. Securities and Exchange Commission.

     

    Zipcar warned investors of a net loss expected in 2011.

     

    Meg Whitman joined the board in Feb 2011.
    14 Apr 2011, 11:31 AM Reply Like
  • Duude
    , contributor
    Comments (3358) | Send Message
     
    So, since their founding Zipcar has made zip. How appropriate.
    14 Apr 2011, 11:35 AM Reply Like
  • HybridIdentity
    , contributor
    Comments (38) | Send Message
     
    I agree with this blogger:

     

    "With gas prices on the rise and student debt on the rise, it seems a natural that where Gen X college kids all had cars, Millenials - at least in urban settings - are much more likely to go without one, and then use Zipcar when they really need a car. "

     

    - bit.ly/gPoNN7
    14 Apr 2011, 01:00 PM Reply Like
  • syi916
    , contributor
    Comments (238) | Send Message
     
    I think they can be more convincing to prospective customers if they allowed one way trips. Ie. go to friends house... drop off the car there and spend the night. Without having to incur overnight charges. In other words, do not charge for the time the car is sitting idle.
    14 Apr 2011, 01:27 PM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (11014) | Send Message
     
    You know zip car told San Jose to bug off when they asked for service. That's because they lose money the more they roll out and there isn't even enough demand at the losing price point in SF. The reason they are there is SF gives them free spots to park there and other goodies. Personally, I don't see where break even is for this company and they probably wouldn't have any business if cities didn't restrict the number of taxis and push up taxi fares to unreasonable rates.
    14 Apr 2011, 04:01 PM Reply Like
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