Zipcar's Jump into Chicago Market Hits Snag

CHICAGO --- Zipcar, a for-profit car-sharing firm, has seen its competitive plans to move into the Chicago market hit a snag due to a combined 12% tax the company would owe on its revenues to the city and the state of Illinois, according to the Chicago Journal. The company wants a share of the market so that it can challenge the I-GO nonprofit car-sharing program.

Boston-based Zipcar had worked a deal with the city of Chicago declaring the company tax-exempt, but was not able to do the same at the state level. I-GO currently pays the taxes and passes the 12 percent additional cost onto its customers.

Illinois House majority leader Barbara Flynn Currie (D-Chicago) has proposed legislation that would exempt car-sharing companies from paying the state tax, but it has stalled in committee, according the report.

Enterprise Rent-A-Car has raised objections to the bill because they feel that all car rental services should be included in the exemption. The state legislature hopes to solve the tax issue during the next few weeks.

Zipcar currently offers customers 20 different car models compared with I-GO’s three – the Toyota Prius, Honda Civic Hybrid and Honda Element. Both companies offer low monthly fees and customer car reservations on short notice 24 hours a day.

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

Trump and Regulations: An Alt-Fuel View

With 2025 emissions targets back in review, manufacturers, alt-fuel, and alt-power suppliers weigh in on the potential impacts of Trump’s initiatives.

Why GM’s Telematics Announcement is a Really Big Deal

Enabling a telematics connection at the factory — and not through an aftermarket hardware installation — is a game changer for fleets.

Four Thoughts From the 2016 Conference Calls

Sifting through the notes of Avis Budget Group’s and Hertz Global Holdings’ recent fourth quarter conference calls give us some trend lines to watch out for in 2017. (Of course, this gives us an incomplete snapshot, as Enterprise Holdings is privately held.)

Job Finder: Access Top Talent. Fill Key Positions.

>