Zipcar turns profitable, seeks IPO: report
Zipcar, the for-profit "carshare" rental company that's been battering PhillyCarShare and other nonprofit urban rent-a-rides across the country, says it expects to make money for the first time in the third quarter, and its investors could cash out in an intial public offering next year, says Bloomberg News here.
Carshares can rent cars at low prices because they use software and neighborhood parking spaces instead of expensive local offices to match vehicles and drivers. But Hertz and other mainstream rentals are getting into the business. Selling the company, either in an IPO or to a competitor like Hertz, will allow backers like Silicon Valley's Greylock Partners, Benchmark Capital, and AOL founder Steve Case to cash out.