Zipcar reportedly seeking $75 million in IPO
The company did post first quarter revenue of $33 million, up 29 percent from 2009, yet its loss ballooned from $3 million in '09 to $5 million this year. In spite of the losses, Zipcar has continued to grow as the company acquired Streetcar Ltd in April to gain a foothold in London, England. Further expansion into Europe is planned in part due to an investment in Catalunya Carsharing, the largest car sharing company in Spain.
Analyst Jim Hall of 2953 Analytics says that Zipcar may have an opportunity to expand beyond the big cities, but the company will need to "learn vehicle usage cycles for different markets all over the country and all over the world." That expansion may mean Zipcar will need to overstock its inventory of vehicles, which could cut into future profits.
[Source: Automotive News sub. req. | Image: Rakka, CC2.0]
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