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Friday, February 6, 2009

Zipcar Moves Downtown—In More Ways Than One

Posted by on Fri, Feb 6, 2009 at 11:10 AM

394a/1233947220-nocars.jpg Zipcar announced yesterday that it's partnering with the city of Seattle to provide Zipcar access to city employees—a great deal for city workers, who'll now have access to more than 60 Zipcars downtown. Yesterday, I met with new Seattle Zipcar general manager Carla Archambault and one of the company's New York-based communications consultants, Nick Sowards, at Zipcar's new downtown office, located in the old Department of Motor Vehicles licensing office on Third and Union.

From what I gathered during our 45-minute conversation, Zipcar is really moving its Seattle focus to center-city neighborhoods—that is, the neighborhoods where density is greatest and carsharing is already popular, like downtown and Capitol Hill. They're also increasing the variety of cars they offer, including high-end cars like BMWs and Volvos, which are apparently very popular here (a fact that surprised me, since—besides the fact that I prefer to drive hybrids for eco reasons—I won't spend more on a car than I absolutely have to. Are the rest of Seattle's Zipcar members somehow escaping the New Economy?) And they're "talking about doing more local promotions" with local companies, Archambault said—although it doesn't sound like the kind of partnerships Zipcars's predecessor Flexcar did with green groups like the Transportation Choices Coalition are in the works.

I asked Archambault why the company had essentially abandoned the South End—leaving just one car in Southeast Seattle, for example, and removing all the cars along the light-rail line just months before it opens. She said demand isn't high enough to justify keeping cars in the South End, and said the company's strategy is to "start in the city and move out"—lots of cars downtown now, and perhaps eventually more cars in neighborhoods further out (the neighborhoods where Zipcar used to have a presence).

I understand the rationale behind providing supply where demand is heavy, but the converse is also true: Because carsharing is an advertisement for itself, the presence of lots of cars in a neighborhood provides an incentive to sign up. You can't miss those bright-green Zipcar logos all over downtown; my guess is that if Zipcar put a similar effort into promoting itself in rapidly-gentrifying Columbia City or in places like Holly Park or Rainier Vista, people would decide signing up made sense there, too. The current strategy—driving away members like me, who would use Zipcar much more often if there was more than one car within a mile of my house, in hopes of eventually attracting new members as the company expands—is understandable, but not inevitable. I could see the opposite strategy working, too (and not just because I have a vested interest in seeing Zipcar expand geographically). As it is, members like me have little incentive to use Zipcar's service. And even if people like me do keep renewing our memberships (I use Zipcars in other cities and occasionally downtown, so it's worth the $50 a year) there's a reason members like me become "non-users."

 

Comments (15) RSS

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1
columbia city has been gentrified for a while now.
Posted by SeMe on February 6, 2009 at 11:29 AM
2
I love this. In Erica's world, businesses should go where there's less demand for their services, not more. Which explains why she's not only an award-winning journalist, but also a successful and wealthy entrepreneur.

/obligatory
Posted by Dan on February 6, 2009 at 11:30 AM
3
People who live in SE Seattle have less incentive to use car sharing since parking is free, traffic isn't a big issue, and people generally need to use a car every day. Car sharing works best for people where people don't need a car everyday and having a car is expensive ie places unlike south seattle.
Posted by john on February 6, 2009 at 11:32 AM
4
@2 It's more like business should go where Erica is, not where demand is.

"a fact that surprised me, since—besides the fact that I prefer to drive hybrids for eco reasons—I won't spend more on a car than I absolutely have to."

ECB really can't see beyond herself.
Posted by N on February 6, 2009 at 11:36 AM
5
And Erica, Zipcar isn't a public service, it's a business. It needs to make money too. Having a lot of unused cars in neighborhoods where there isn't a high demand costs it money. The economy doesn't just affect you.
Posted by N on February 6, 2009 at 11:38 AM
6
We tried to get Flexcars in our north Seattle neighborhood, but were told we were not dense enough and that the education level was not high enough. We were working on a community campaign to persuade Flexcar to try out our neighborhood. It all went down the tubes when Zipcar came to town.

I understand that they are a business and that they can't throw money to the wind.

The fact that they are leaving SE Seattle as light rail is coming is troubling, though. I wonder if transit oriented development is successful, if Zipcar will return to SE Seattle. If they don't perhaps a competitor with a different business model, perhaps a non-profit that only operates with hybrids, could start up in SE Seattle.
Posted by R on February 6, 2009 at 11:39 AM
7
Erica, after she explained the company's placement policy did you actually share your opinions with her during the interview? If so, what was her reply? Do they plan to do more advertising to build market share elsewhere in the city?
Posted by Inkweary on February 6, 2009 at 11:53 AM
8
zipcar is like whole foods
Posted by just another expensive yuppie amusement on February 6, 2009 at 12:03 PM
9
I agree with Erica - if the closest Zipcar to me (Eastlake & Roanoke) wasn't a Scion XA almost a mile away a bit past Azteca, I might be more inclined to use them from home. I do use them from work though (Pioneer Square-ish) and they work well from there - I got a huge choice.
Posted by Barky on February 6, 2009 at 12:08 PM
10
what is your vendetta against Zipcar? If you are so sure you can do better, than start your own car share program. For my money, they do a damn good job.
Posted by zip fan on February 6, 2009 at 12:22 PM
11
The nicer cars are for people who want to use them to go on a date. I realize that might not occur to... oh hell I'll shut up now as so many commenters have gone down this path before.
Posted by Joe M on February 6, 2009 at 12:23 PM
12
Zip car is shit compared to Flex car - my business quit them long ago

On, we are in the middle of C. Hill - so there are cars in every direction. But, god, how to work with these New York trash people ...... horrible.
Posted by Mark Buick Lover on February 6, 2009 at 12:26 PM
13
@10:

If Erica ever tried to get investors to back her on such a project, I suspect that her proposals to only offer cars powered by farts and accept payment only in hugs would quickly find their way to the trash bin.

Capitalism is for losers.
Posted by Dan on February 6, 2009 at 12:40 PM
14
Erica, Zipcar has definitely partnered with Transportation Choices Coalition in the past on many issues (advocacy, education, outreach)and we have a partnership right now. In fact we were just talking yesterday about how to enhance our partnership. We are strong supporters of Zipcar.
Posted by Shefali from Transportation Choices on February 6, 2009 at 5:34 PM
15
nice to hear that. Zipcar will be much more accessible in foreign places today. It would be more interesting to see newer cars (such as trucks, neuspeed, bmw cars, chevy, etc.)
Posted by petty on April 29, 2009 at 10:19 PM

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