15 Apr '11, 8pm

Zipcar IPO Raises $174.3 Million to Fuel Expansion...

Zipcar IPO Raises $174.3 Million to Fuel Expansion...

My understanding is that Zipcar isn't profitable because they spend so much to grow, not because their business model can't generate profits. They probably feel that at this point it's more valuable to grow quickly and grab new markets and get a first mover's advantage. Later they'll probably slow down and focus more on being profitable. That's the theory anyway... What matters is that they are economically sustainable so that they stick around and offer a mid-way alternative to city-dweller who don't want to own a car but sometimes need one.

Full article: http://www.treehugger.com/files/2011/04/zipcar-nasdaq-zip...

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