Why is Zipcar zipping past Richmond?

Despite what seem seems like a perfect demographic of potential customers, car-sharing firms aren’t bullish on Richmond, preferring Washington, Norfolk and even Blacksburg, which just launched a pilot program.

Located throughout 28 North American states and provinces and with a heavy concentration in college towns, Zipcar has spread fast. But it has bypassed Richmond like it took a wrong turn onto I-295.

“We evaluate many cities,” said Nancy Scott Lyon, communications director for Zipcar, on determining where to expand. “Most Zipcar locations are in larger cities where there’s a high level of commuting.”

The Boston-based company offers members rental cars by the hour or by the day. The icing is that auto insurance is provided and 180 miles worth of gas is included. According to a recent Fortune magazine article, customers who trade in a car for Zipcar membership save an average of $600 per month, with much of that savings coming from gas and insurance.

Richmond has not officially been considered for a Zipcar location, but it hasn’t been ruled out, Lyon said.

“Given the number of colleges and universities in the region, there could be potential for
Zipcar,” said Jaime Quick, spokesperson for Zipcar, on bringing the company to Richmond.

The company tends to locate in dense urban cities, as well as on college campuses such as the University of Michigan in Ann Arbor. The closest locations to Richmond are Washington and in Norfolk on the Old Dominion University campus.

A competitor to Zipcar, a division of U-Haul, has just launched a pilot program in Blacksburg.

U Car Share provides six choices of cars, including the Toyota Prius, Honda Civic Hybrid, Ford Focus, Toyota Yaris, Mini Cooper and a Ford F-150. Virginia Tech has given the company prime parking spots to encourage usage.

According to a story from Sunday’s Times-Dispatch,  the University of Virginia has requested a proposal for the program.

Members can pay for an hourly rate starting at $4.95 with gas and insurance included plus $0.59 per mile. There is also 180 miles free per reservation from $8-$12, depending on the vehicle.

But no nibbles in Richmond. That’s despite VCU’s more than 30,000 students and the fact that parking is a nightmare for many of them. The car service theoretically would make sense for students who want access to wheels for trips to Short Pump or even day trips.

“I would be very impressed if Zipcar came to Richmond. We may not be as big as a city like New York, but we all have our traveling problems here,” said Emily Owens, a VCU junior. “The drivers want the bikers off the road, the bikers know it’s illegal to ride on the sidewalk, and the bus can sometimes be uncomfortable.”

According to Lyon, places where Zipcar has located have reduced greenhouse gas emissions, traffic and the amount of time spent to find parking, as well as other problems posed by city living.

Richmond is still a place of interest for the company.

According to Quick, Zipcar does a tremendous amount of research on current and potential markets and has over 130 campuses throughout the country using Zipcar.

“We remain interested in talking with colleges, universities, municipalities, transit agencies, including Richmond,” said Quick.

Zipcar’s service could also appeal to area business; the company markets special packages for company use. You can read their business offerings here.

More Reading:

Zipcar – The best new idea in business, Fortune magazine

Mashalla Mukadam is a BizSense reporter. Please send news tips to mm@richmondbizsense.com.