6/28/2023 0 Comments Zipcar pricing![]() After financing the first car with Chase's home as collateral, the car leasing companies wanted a $7,000-per-car deposit for each additional vehicle, as this was a business start-up that could fail. There was an unpleasant surprise when it came to negotiating the car leases. As launch time neared, Chase found the company with just $68 in the bank. ![]() As quick as money came in, it disappeared. Their first engineer had to be persuaded to work for equity. Technology costs were substantial and quickly consumed almost the entire amount. In all, Zipcar would raise $75,000 pre-launch, a figure Chase looks back on as laughably low. Related: Startup has Sky-High Aspirations for Roadable Aircraft The funding was structured as a loan convertible to Zipcar equity once the company's valuation was established in its first venture-capital fundraising round. Instead, the woman turned to her husband and said, "What do you think, honey? Should we invest $50,000 in Chase's company?" They became Zipcar's first funders. In February, she had one Sloan classmate and her husband over for dinner, hoping for a little advice. ![]() Chase began talking up Zipcar to alumni, businesses, environmental groups, and her local networks. It was time to build the reservation and car security technology and to lease the initial cars, which meant time to raise money. The winning tagline was: "Wheels when you want them." Chase also tested another small pack of 3x5 cards with five slogans. About 40% of consumers disliked the word "sharing." Also, that URL was taken, with the site owner willing to sell only if he could receive a 10% stake in the company. Wheelshare made people think of "wheelchair." U.S. Then, saying nothing about the planned business idea, she'd ask people what thoughts each name evoked. Wherever she was -n coffee shops, in the bank line, at her children's swim meets - she would get out her cards. Chase wrote the names on 3x5" cards and started taking consumer polls. But the website URLs for many early favorites were already taken.Įventually the list narrowed to five, three of which were notable: Wheelshare, U.S. You should absolutely do it,'" Chase recounts.įinding the right name for the business involved considering dozens of potential names. "And she said, 'Are you kidding? You could make more money and save so many children's lives if this succeeded. Her daughter knew the family donated some of what it made to children's causes. Chase explained how successful the company could be, and how car sharing might positively impact the planet, but that it would likely mean round-the-clock work hours for a while. The answer came from her 12-year-old daughter, who noticed mom's quiet mood and cornered her in the kitchen one night.
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