Ford Motor Company and Zipcar Announces Partnership
Ford Motor Company (NYSE:F) and Zipcar Inc (NASDAQ:ZIP) has announced a partnership where Ford will become Zipcar’s largest source for the company’s Zipcar University program. The Ford and Zipcar alliance will last two years and will reach students across 250 university campuses.
Ford will ship Ford Focus and Ford Escape vehicles to colleges this week. During this academic year, Ford will add 650 Ford vehicles and up to 1,000 during the lifetime of the agreement. Zipcar will also offer $10 off of its $35 annual membership to the first 100,000 new University program members that sign up. Zipcar is also offering $1 off the hourly rate for the first 1 million hours of use on any of the Ford cars. This brings it down to $7.50 per hour.
“We’re targeting a generation that only knows how to buy music by the song so paying for a car by the hour is a natural for them…” stated Zipcar chairman and CEO Scott Griffith. Ford believes that Zipcar is the first experience that many drivers have behind the wheel. When they decide to leave the program, they hope that the driver will end up considering a Ford car. The Focus cars has MyFord Touch and SYNC systems. Zipcar’s University program started 8 years ago and they have partnerships with Yale, Harvard, MIT, Stanford, USC, UC-Berkeley, Loyola-Marymount, FSU, Univ. of Mich., Mich. State Univ., and GWU.
Zipcar’s network has over 605,000 members total and over 9,000 vehicles in the U.S., Canada, and U.K. Rentals at colleges are about 10% of Zipcar’s total business.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry