In the two-year partnership, Zipcar would add up to 650 Fords to its car lineup in the current academic year and up to 1,000 vehicles during the life of the deal, Ford said in a statement on Wednesday.
The company said Zipcar would offer $10 discount on its $35 annual membership fee for the first 100,000 sign ups, and $1 off its hourly rate for the first 1 million hours for the use of any Ford vehicle at certain colleges.
It certainly is a smarter method than flooding Avis and Hertz with cars so that people can try them.
Why?
Because you’re targeting the subsegment of drivers that is viewed as the most valuable - college students, who will soon be buying new cars for themselves for the first time and at the easiest point to grab as a lifetime customer. At Avis and Hertz, you’re just flooding the general population, not your prime customers. Not only that, but the number of cars being put out as rentals is insignificant in terms of the used car market - you won’t be dragging down residual values like you do flooding Hertz and Avis…
And commercial heavy pickups and police/taxi don’t really impact resale values - those vehicles only hit the used market when they are seriously used and beat up. I’d argue those are GOOD fleet sales to have.