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.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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