For car-sharing companies like Zipcar, the coronavirus pandemic has created an existential dilemma for their business model. On the one hand, the idea of driving a car that was just used by a complete stranger may be a non-starter for customers worried about infection. On the other, it beats public transit.
As the pandemic took hold in the U.S. in March, GM hit pause on Maven, its experiment in the car-share space, before shutting it down for good last month. But Zipcar, which is now a sort-of elder statesman of the new mobility sector, sees opportunity amid the crisis. Last week, the company, a subsidiary of Avis Budget Group, announced it would make it easier for customers to access its fleet of cars without having to go through a sign-up process. The feature, dubbed Instant Access, allows licensed drivers to snag an available car within minutes.
"It's so easy," said Zipcar President Tracey Zhen in an interview on Cheddar Tuesday. "You just need a selfie, a credit card, and a driver's license, and it's off you go."
After uploading a selfie and a photo of your license to the app to prove your identity, Zipcar will let drivers book, unlock, and start the nearest car via the app. The entire process takes a "matter of minutes," Zhen said. She noted that shortening the time it takes for customers to book a vehicle has regularly been among its users' most-requested features.
The company is also introducing Dedicated Zipcar, a service that Zhen said is particularly suited to the pandemic. It lets customers book a specific car for a set period of days, for a monthly fee.
As more states and cities loosen their stay-at-home restrictions ahead of what is normally the busiest driving season of the year, Zipcar is hoping that it can attract cooped-up urban dwellers who don't own cars but are looking to get out of town for a day or week. The company's biggest challenge with that bet may be that that potential pool of customers is shrinking: First-time car buyers are on the rise around the world, likely due to increased concerns over the safety of public transport.
On the BMW earnings call last week, the CEO of the German automaker said: "At the moment, we are seeing that people would rather take their own car. But we can't predict today whether this is going to last." Volkswagen's CEO said 60 percent of its sales in China last month were from first-time car buyers.
Still, it remains to be seen whether that trend could harm the long-term prospects for a company like Zipcar. For now, Zhen said, car-sharing has proven to be an essential service that's helping customers run errands and visit family when they otherwise would have to rely on public transportation.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
