Zipcar $75 Million I.P.O.
Zipcar $75 Million I.P.O. – Zipcar, a company that specializes in car and ride sharing, has filed for a $75 million initial public offering, according to recent reports. The service has been able to rapidly expand in recent years, and their recent filing of their IPO shows that the company is ready to move forward. Zipcar went on to say that they planned to use the proceeds from the recent offering to help the company to pay off debt and continue to expand its business, while hopefully turning a profit.
Zipcar is based in Massachusetts, and is backed by a number of venture capital firms who thought that the Zipcar idea could potentially be one to take off. However, the company has not been able to turn a profit since it was originally founded in 2000. Zipcar said in their filing that the company is not sure that it will ever be a profitable one, but that it would be restructuring to ensure that the company will be gaining a number of large expenses over the course of the next few months in an effort to expand. The company apparently believes that the road to profit in the business can only be accomplish through expanding their market.
Zipcar announced one year ago that they were planning on going public. The company allows users to rent a car at an hourly rate. They then are not required to pay for gas, parking , or insurance on the car. The service is approaching nearly 500,000 members, and is looking to expand their market share, in hopes that they can make the company profitable in the coming months.