Zipcar Achieves Record Growth and Profitability in 2004; Unveils Expansion Plans to Become First Nationwide Car-sharing Company for Zipcar and its Members

CAMBRIDGE, MA — (November 17, 2004) — Zipcar, the company that offers self-service, on-demand cars by the hour or by the day, today announced it has achieved record sales, member growth and profitability in 2004, with revenues projected to increase again by more than 100% in 2005. Based on this success, Zipcar also today announced aggressive expansion plans to become the country’s first national car-sharing service.
 
To date, Zipcar has realized a 100% increase in members in 2004, the company’s fifth year of operation. With approximately 30,000 members signed since inception, Zipcar has the largest active membership base of any car-sharing service. On average, 1,500 new customers join Zipcar’s service each month. Recent growth has been fueled by several new partnerships with major universities and corporations, frequent driver pricing plans, record business-to-business sales and expansion of the Zipcar fleet to include luxury sedans, hybrids and SUVs.
 
Zipcar’s operating revenues are expected to grow by 100% in 2004 to approximately $7 million. Projected revenues for 2005 are expected to exceed $15 million. Since July, Zipcar has operated profitably in all of its markets. On the heels of this success, Zipcar plans to roll out service to at least three new major U.S. metropolitan areas in 2005, with the first rollout occurring in January 2005. Additionally, plans are being developed to be in 25 North American markets within the next five years.

Zipcars are conveniently located throughout 7 states and 21 cities including metro Boston, New York, and Washington, DC. With Zipcar’s technology, accessing and using a Zipcar is as easy as getting cash from an ATM. In minutes or up to a year in advance, members can reserve Zipcars online or by phone, 24 hours a day, seven days a week. Zipcar members have automated access to Zipcars using a “Zipcard” to simply unlock the door and drive away. Rates start at $8.50 per hour and $60 per day, with gas, parking and insurance included. Zipcar offers over 20 different makes and models, including the Toyota Prius gas/electric hybrid, Mini Cooper, BMW 325i and Scion xB.

“Achieving these record levels of growth and revenues is proof that both consumers and businesses are responding to our service and technology as a cost-effective, timesaving alternative to car ownership or traditional rental car services,” said Scott Griffith, Zipcar president and CEO. “Now that we’ve established profitability and built an incredibly loyal and enthusiastic member base in all of our existing markets, we are able to make the necessary investments to launch Zipcar as national brand. We are eager and excited to take car-sharing to the next level and look forward to bringing Zipcar’s premier car-sharing experience to drivers all across North America in 2005 and beyond.”
 
About Zipcar Zipcar was founded in 1999. Since 2000, when Zipcars first hit the road, nearly 30,000 consumers and small business drivers ages 21+ have joined. Zipcar currently operates more than 400 vehicles in 7 states and 21 cities including Boston, New York City and Washington, D.C. For a convenient and cost effective car rental experience or to learn more, visit www.zipcar.com.