Zipcar Inc. announced March 27 the expansion of its “Zipvan” pilot cargo van service, with additional vans in San Francisco as well as new service beginning in Boston and Washington, D.C. The Ford E-150 full-size cargo vans offered through the service give consumers and small businesses another option for transporting items too bulky for cars and pickup trucks.
The expansion of the pilot program comes as a result of the successful launch in San Francisco last November.
Starting this week, both Boston and Washington, D.C. will begin offering the Zipvan service, and both cities will soon be home to 15 Zipvans each. As well, the program in San Francisco will now offer 20 vans.
“The strong demand of the Zipvan service in San Francisco has shown us that whether it’s a MINI Cooper for a night out on the town or a cargo van to move apartments, members appreciate the ease and convenience of membership in the Zipcar network,” said Scott Griffith, chairman and CEO of Zipcar. “We’ll continue to evaluate the popularity, economics and network benefits stemming from this offering to determine whether to incorporate it into the Zipcar service across North America.”
The Boston Zipvans will be added to 10 Zipcar locations throughout the city, including pods at the Belvedere Street Prudential Center Garage, Gainsborough Street in Fenway and at the intersection of Washington Street and Corey Road in Allston.
Zipvans in the Washington, D.C. area will be added to nine existing Zipcar pods, two of which are located in Virginia and Maryland. The pods of Zipcars located on Rhode Island Ave and 4th Avenue NE, at the Columbia Heights Metro and at Courthouse Metro in Virginia will each have two Zipvans available, along with their existing fleet of vehicles.
The vans are available for hourly or daily use with rates starting at $15.75 per hour and $109 per day. As with all vehicles in the Zipcar fleet, Zipvan pricing includes gas, insurance, parking, roadside assistance and up to 180 miles of driving per day.
The revenue increase was driven primarily by a higher net revenue margin associated with two new subscription tiers launched in the second quarter.