Zipcar files for_75_million_ipo
Transcript of Zipcar files for_75_million_ipo
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Zipcar files for $75 million IPOby Adele
June 2, 2010
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Company background
• operates the world’s leading car sharing network
• provides the freedom of “wheels when you want them” to over 400,000 members
• Is concentrated in 13 metropolitan areas and more than 150 college campuses in the U.S., Canada and U.K.
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Present financial situation
• Revenue has increased throughout the global economic downturn.
• Has never been profitable, still posting operating losses
• In 1Q 2010. loss rose to $5.3m from $3m a year earlier; revenue increased 29% to $33.3m
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Car-sharing market• Revenue from North America hopes to rise to
$3.3b by 2016 from $253m in 2009
• Revenue from Europe is expected to increase to
€2.6b in 2016, up from €220m in 2009
• Zipcar accounts for ¾ of the small but fast-growing car sharing market
• Major competitors: big auto-rental companies: Hertz& Enterprise
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Growth Strategies
• Increase Awareness and Adoption in Existing Markets
• Expand into New Markets
• Broaden Relationships with Existing Members
• Continue to Build Offerings for Businesses and Government Agencies
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About the IPO
• Aims to raise $75 millon
• Use of proceeds: repayment of debts, working capital and other general corporate purposes
• “it will be more than an IPO of an unprofitable company with a lot of potential: It could spell a new chapter in the world of social enterprise” (Annie Field)