Zipcar files for $75 million IPOby Adele

June 2, 2010

Company background

• operates the world’s leading car sharing network

• provides the freedom of “wheels when you want them” to over 400,000 members

• Is concentrated in 13 metropolitan areas and more than 150 college campuses in the U.S., Canada and U.K.

Present financial situation

• Revenue has increased throughout the global economic downturn.

• Has never been profitable, still posting operating losses

• In 1Q 2010. loss rose to $5.3m from $3m a year earlier; revenue increased 29% to $33.3m

Car-sharing market• Revenue from North America hopes to rise to

$3.3b by 2016 from $253m in 2009

• Revenue from Europe is expected to increase to

€2.6b in 2016, up from €220m in 2009

• Zipcar accounts for ¾ of the small but fast-growing car sharing market

• Major competitors: big auto-rental companies: Hertz& Enterprise

Growth Strategies

• Increase Awareness and Adoption in Existing Markets

• Expand into New Markets

• Broaden Relationships with Existing Members

• Continue to Build Offerings for Businesses and Government Agencies

About the IPO

• Aims to raise $75 millon

• Use of proceeds: repayment of debts, working capital and other general corporate purposes

• “it will be more than an IPO of an unprofitable company with a lot of potential: It could spell a new chapter in the world of social enterprise” (Annie Field)