Uber, Zipcar Announce Partnership for Car-Sharing Deal

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【Summary】Ride-hailing app Uber and car-sharing service Zipcar announced a partnership where Zipcar would offer its vehicles Uber drivers. The deal is currently only available to drivers in Boston, MA, but could expand to other cities in the United States.

Original Vineeth Joel Patel    Feb 15, 2017 7:30 PM PT
Uber, Zipcar Announce Partnership for Car-Sharing Deal

Car-sharing services are expected to grow rapidly in the upcoming future as urban residents look for a way to keep vehicle ownership costs down. As a previous report documented earlier, some urban residents can save money by utilizing a ride-sharing service instead of going down the traditional route of owning a vehicle. Would the same idea help individuals that want to make money by driving for ride-hailing apps? 

In the hopes of getting ahead of the pack, Zipcar and Uber recently announced a partnership to get more drivers interested in the idea of utilizing a ride-sharing service. 

Ride-Sharing For Everyone

Zipcar, a car-sharing service, will join forces with Uber, a ride-hailing app, to supply its branded sedans to drivers in Boston, MA, reports USA Today.  The deal is starting off in Massachusetts' capital, but could spread to other cities in the United States. As of right now, Zipcar will provide Uber with 20 of its sedans for drivers to utilize. 

Zipcar currently provides users with the ability to rent a vehicle by the hour, as a means of getting around vehicle ownership. With the new deal, Zipcar expands its services to Uber drivers. Drivers working for the ride-hailing app will be able to use one of Zipcar's sedans to serve their passengers. 

After being approved, Uber drivers will be required to pay a $7 membership fee for month to obtain privileges to Zipcar's vehicles, as well as $12 per hour. Zipcar's rates differ by state with membership fees ranging from $7 per month or $70 per year and $8 to $10 per hour for drivers looking to borrow a vehicle. 

As USA Today points out, Uber and Zipcar both did not provide any financial details behind the deal. But Zipcar spokesperson Lindsay Wester told the outlet that the deal is "a mutually beneficial partnership" in an email. 

Partnerships Are The Way Forward

"As the automotive landscape evolves, technology is playing an ever-increasing role in transportation services, and we are well-positioned to meet new and evolving customer needs and demands, as evidenced by this new partnership," said Andrew Kupiec, Vice President for Avis Budget in a statement. "Our quality, well-maintained vehicles, coupled with Zipcar's technology, will give Uber's driver partners wheels when they want them." 

This isn't the first time Uber has entered a deal like this to make cars more accessible. The company recently announced a partnership with Daimler for autonomous vehicles from Mercedes-Benz. That deal will see the company add self-driving cars from the German automaker to its fleet. 

Lyft, another ride-hailing app, has a similar program with Hertz, as well. According to Hertz's website, Lyft drivers can rent a mid-size sedan for $180 a week or a compact sedan for $165 a week. Uber's new deal with Zipcar gives its drivers more flexibility, since drivers can choose to rent a vehicle at an hourly rate and not a weekly one. 

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