Auto Rental News
MenuMENU
SearchSEARCH

Zipcar Shrinks Net Loss in Second Quarter

Zipcar Inc. grows revenue and narrows GAAP net loss in the quarter, though membership growth slower than anticipated and UK business remains challenged.

by Staff
August 2, 2012
3 min to read


Zipcar Inc. today reported results for the second quarter, which ended June 30, 2012.

For the 2012 second quarter, revenue increased 15% to $70.8 million compared to $61.6 million in the prior year period. Revenue growth in the 2012 second quarter resulted primarily from a 21% increase in membership to more than 731,000 members at quarter end.

Ad Loading...

Usage revenue per vehicle, per day was unchanged at $65 versus the prior-year period. Usage revenue represented $60.4 million in the second quarter of 2012, compared to $53.3 million in the prior-year period with fee revenue representing substantially all the remaining revenue in both periods. Fee revenue represented 14.6% of total revenue in the 2012 second quarter compared to 13.4% in the prior year period.

Scott Griffith, Zipcar chairman and CEO, said, "We generated solid double digit revenue growth in the second quarter and grew total membership by 21% year-on-year. We also launched our Zipvan service into new markets and extended our geographic reach in both North America and Europe. Despite these gains, we brought in fewer members than we had anticipated, and we faced economic challenges in our UK business. Moving forward, we are taking actions to maximize returns on our marketing spend, and we will be rolling out initiatives to accelerate adoption and expand our service offerings."

In Zipcar's Established Markets — Boston, New York, Washington, D.C. and San Francisco — second quarter revenue grew 16% to $39.8 million compared to $34.4 million in the prior-year period primarily due to new member additions.

Income before tax for the Established Markets was unchanged at 22% of revenue in the second quarter 2012 compared to the prior-year period.

US GAAP net loss in the second quarter of 2012 was ($422,000), compared to a loss of ($5.6) million in the prior-year period.

Ad Loading...

Non-GAAP Results

Adjusted EBITDA for the 2012 second quarter was $3.4 million compared to $2.3 million in the prior-year period as a result of revenue growth and operating leverage.

"We effectively managed expenses and reported solid year-on-year growth in adjusted EBITDA," commented Ed Goldfinger, Zipcar CFO. "Our focus in the near-term will be on introducing new initiatives designed to reignite member growth."

Outlook

For the full-year 2012, revenue is now expected in the range of $272 million to $278 million. Full-year 2012 Adjusted EBITDA is now expected to range from $12 million to $16 million and US GAAP net income is now expected to range from breakeven to $4 million.

For the 2012 third quarter, Zipcar expects revenue in the range of $74 million to $77 million. Adjusted EBITDA for the period is expected to range from $2.5 million to $5 million and US GAAP net income is expected to range from a loss of $0.5 million to a profit of $2 million.

Other Highlights

  • Membership grew to more than 731,000 at quarter end.

  • Launched Zipvan service in Chicago and Toronto for a total of 165 Zipvans in five markets in North America and more than 200 Zipvans in the UK.

  • Following quarter end, Zipcar expanded its European network with acquisition of CarSharing.at, the car sharing service in Austria with approximately 200 vehicles and 10,000 members.

Ad Loading...

More Rental Operations

thumbnail of title and photo of Joel Price and Chris Brown
Rental Operations•by Chris Brown•October 20, 2026

How Did This Independent Rental Operator Grow to 170 Vehicles in 4 Years?

With 170 vehicles across three Kentucky locations, Joel Price relies on an overseas team to handle reservations, payments, and after-hours customer service. It's one part of an unconventional approach to growing an independent rental operation.

Read More →
thumbnail what does it take to succeed in b2b rentals
Rental Operations•by Chris Brown•October 12, 2026

What Does It Take to Succeed in B2B Rentals?

The fundamentals may be familiar to daily car rental operators, but project-based truck rentals put different demands on the fleet and the business.

Read More →
Photo of Ana Laborde and world map
Rental Operations•by Chris Brown•October 12, 2026

NPR Builds on International Partnerships to Grow Rental Bookings

With Ana Laborde supporting broker development, NPR Auto Group is tailoring distribution strategies, rate packages, and partnerships to grow international reservations across its three brands.

Read More →
Ad Loading...
Rental car agent shows woman her choice of rental car
Rental Operations•by Chris Brown•October 7, 2026

Advantage, Sixt Place Among Top Five in Annual Satisfaction Study

While Enterprise and National retain the top spots in JD Power’s 2026 rankings, the latest customer satisfaction results suggest renters can find competitive service beyond the biggest car rental names.

Read More →
an exotic car wrapped in an insurance policy
Rental Operations•October 1, 2026

The $100,000 Insurance Trap in Exotic Car Rentals

Exotic rental agencies often rely on customers’ personal auto policies to protect six-figure vehicles. But policy language can dramatically change the coverage for vehicles over $100,000 MSRP.

Read More →
globe of world and drivers license from UK
Rental Operations•September 28, 2026

The Booking Is Confirmed, But Is Your Customer Ready to Drive?

For international renters, a confirmed reservation doesn’t always mean they’re eligible to drive. Earlier checks can help operators catch documentation and payment issues before the customer reaches the counter.

Read More →
Ad Loading...
Scenes from Car Rental Shows past
Rental Operations•by Staff•September 23, 2026

ICRS 2027 Opens Call for Papers

The International Car Rental Show seeks session proposals on the business, operational, and technology issues facing car rental operators. Submissions are due Jan. 15.

Read More →
hand holding phone and Turo logo
Rental Operations•by Staff•September 21, 2026

Turo to Launch Vehicle Delivery Service

Turo Delivered will let travelers search for vehicles that hosts can deliver directly to hotels, homes, airports, train stations, and other locations.

Read More →
plane, palm trees, car rental sign
Rental Operations•by Chris Brown•September 15, 2026

Palm Beach Airport Code Change Creates Car Rental Distribution Gap

A test of rental searches under the old PBI and new DJT airport codes returned largely different sets of brands and vehicles, highlighting a potential distribution problem for rental operators.

Read More →
Ad Loading...
Team members of U-Save's new franchise
Rental Operations•by Staff•September 15, 2026

U-Save Continues Dominican Republic Expansion with Launch in Punta Cana

The new franchise location builds on U-Save’s existing Santo Domingo operation and will begin taking reservations for October 2026.

Read More →
Ad Loading...