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Zipcar files for_75_million_ipo


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Zipcar files for_75_million_ipo

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