ZipCar: Not The Effective Car Service They Proclaim To Be

I have been on the fence about Zipcar ever sense they opened their doors to eco-sensitive drivers like myself. Besides having the option to drive a hybrid, I loved the idea that I was sharing a car with a stranger, and that our time spent sharing a car would positively affect the environment as well as each other. Knowing we are in this deal together, making mindful choices for the environment and more importantly for ourselves.

BUT I had some serious reservations when I learned about the costs associated with renting a Zipcar. The owners of Zipcar attest that these exorbitantly high fees they charge their customers are associated with the huge costs they absorbed while purchasing the cars to start the business. I know this company has not only broken even, they are profitable. So what fees are they passing off to their customer base now? These high rental fees are about 48% premium of that of Enterprise. What further disturbed me about Zipcar was their customer service. You can always tell when a customer service team is overlooked and underpaid. Anytime I call retail companies like Smith and Hawken, I am always struck by the grounded, open and mindful voices I hear on the other end of the phone. What does this tell me? It tells me management is doing something right.

I recently spoke with a customer service agent about a charge on my credit card for $178 for a two-day rental in which I canceled within 24 hours. But did you know you get charged if you don’t cancel your reservation within their VERY tight window? I bet you didn’t, because like myself, I didn’t take the time to read their rules and regulations in fine print letting me know that I would be charged for a canceled reservation "within 24 hours". Maybe my cancellation got carried over to the next day and was more like 25 hours, hence the reason for the charge.
Here’s what is says on their website, after three clicks to actually find it "for reservations less than 8 hours long, you've got until 3 hours before the start of your reservation. For reservations 8 hours or longer, you've got to do it at least 24 hours in advance. If you don't cancel or shorten your reservation with the required advanced notice, you will be charged the full amount of the reservation."

What upset me the most about my reservations with Zipcar and their PR campaign was the conversation I had with one of their customer service agents about my frustrations with an almost $200 charge on my credit card for a no rental, mere robbery. I suggested she share my opinion about the community based car service to management that they should be more forthcoming and transparent about their terms and conditions and be more mindful about their intentionality with their business policies. The customer service agent replied, well this is a business and my opinion doesn’t matter. GASP!
For the sake of a sustainable car company such as Zip car, I was surprised that they would bring someone on to their team with that kind of mindset. What kind of intentions are these owners sending out not only to their customer base but also to their own kind? This movement of sustainability is a paradigm shift in consciousness, that ALL opinions matter and business is not just about making money but also about transforming who we are, how we perceive ourselves so that our perception of the exterior changes and shifts for the better. Her opinion did matter, and if the owners had an open door policy and welcomed customer service opinions, I am sure Zipcar would have the opportunity to be perceived as a respectable and transparent corporation helping to make a shift in the way we as consumers interact with corporations.

I have had lots of problems with these guys. Its too expensive and I don’t like the intentions they are sending out. I would stick with Enterprise until another car-sharing service can offer their services with a much broader, community based, eco-driven idealism.

Some things you should know about if you decide to stick with Zipcar.

Because they don’t offer insurance, if anything happens, make sure you know about their deductible of $500.

What fees do I need to know about?

No one likes to talk about fees and fines, but they're a "must" to keep this whole car sharing thing running smoothly. We hope you never have to fork over cash for these things...

Late Return Fee $50 per hour (up to a maximum of $150), plus the vehicle usage charges
Low Gas Fee $20 if you return a vehicle with less than 1/4 tank of gas
Zipcard Replacement $15 to replace a lost Zipcard
Ignition Key Replacement This key is supposed to stay in the vehicle, attached to the cord on the steering column, at all times. If you lose the key, the replacement fee is $75 plus costs for materials and labor.
Reservation Changes There is no charge for extending a reservation. There is also no charge if you cancel or shorten your reservation with the required advance notice. However, you will be charged the full amount for your reservation if you do not give the required advance notice.
Personal Reservation Assistance $3.50 per call (Remember, it's free to use the automated phone system.)
Tickets/Violation Processing Fee You are also responsible for paying any parking tickets and moving violations incurred during your reservation. We charge a $20 processing fee for each ticket or violation that is not paid or appealed on time.
Other Violations $20 per violation, plus costs incurred by Zipcar anytime a visit to the vehicle is required (including visits due to smoking or pets in the vehicle)

Comments

[Victoria E]

I'm sorry to hear that you have had such a negative experience; I've been using Zipcar for nearly 6 months and have loved every rental.

[Anon]

Here are a few more concerning Zipster experiences:

Insurance coverage is dangerously low
- www.felixsalmon.com/000612.html

Charge my credit card first, listen to me later
- zuskalaw.blogspot.com/2007/04/cons.html

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[Ali SFO]

I have to agree with you ZipCar has terrible fee policies... I just tried Zipcar for a week, to see if I could really give up my car and do the car share thing. My first bill had over $100 in late fees, one of which was after a "thanks for calling to tell us you are going to be late" (with no mention of the fees). Enterprise, City Car Share, and Flexcar have nothing even close to these types of fees.

My favorite is according to their website they have "Exceptional customer service" I guess that's only if you don't owe them money in the fine print.

[Jeff]

I think the big worry here is the lack of insurance - I'm a firm believer that you cannot have enough insurance - looks worrying to me!

[john.doe@nowhere.com]

Hello blogger,

I have also had a customer service rep who had a patronizing and overall shitty attitude. I canceled the account.

[John]

All of the fees are there to provide the proper motivation for being responsible with sharing the car. You return the car late? Maybe someone is standing there waiting for it. You return it with an empty gas tank? The next person wouldn't be happy to pick it up like that. You need to cancel a long reservation at least 24 hours in advance so that others will be able to reserve and use the car! The insurance has a $500 deductible which seems pretty standard, and their coverage amounts are similar to what most people get. Of course there's no excuse for bad customer service, but you can experience that at almost any company.

[Jonathan]

I was really excited about zipcar when I joined but I had a terrible experience on my first rental so I'm not sure if I'd use them again. First off they are expensive - the $10 rate they always quote only applies to weekday rentals and does not include tax. So that $10/hr car is actually $13.61 per hour on the weekend day you actually have time to rent it. Second their availability is awful. Maybe this is because I live in NYC, but still, it seems you have to rent a week ahead of time to have a good selection of cars. And most importantly, their customer service sucks! The first time I used zipcar I rented one of their "premium" cars, a volvo. The car was gross. Not only was it covered in what looked like bird droppings, and I mean covered front to back (turned out to be some concrete material), the inside was disgusting with debris, items, and even food left sitting around. At one point I reached down to pick up my zipcard which had fallen between the seats and I felt a bunch of french fries! After returning the car I called up zipcar to tell them about this, and they practically accused me of lying. They said that because I called after I returned the car they had no way of knowing if I or someone else had left the mess. There was no credit, refund, or anything given. What's the point of renting from a company which cares so little about its customers and charges so much, when you can get a good car from a real rental car place for sometimes even less?

[Dan]

I'd been considering getting a Zipcar membership for the past few months, then when I walked past one of their lots last week, I saw postcards with a promotion for $100 of free driving. However, when I tried to sign up online, the system wouldn't take the promo code. I called customer service, and after being put on hold for a few minutes, I was told to check the expiration date on the promotion. Looking at the back of the card, the fine print DID clearly say the promotion had expired in November, but these cards had been certainly been put out within the past week (I walk by the lot every day on my way to work and they had been empty for quite some time). The customer service rep told me there was nothing he could do and that there were no other promotions I could use instead. I explained that this seemed to me like a deceptive business practice, and he said he would ask somebody to look into it... I did not get the impression that he actually had any intention of following up. Too bad: Zipcar has just lost one potential customer.

[Kathryn]

I, too, had a couple of bad customer service encounters with Zipcar. I even wrote a lengthy email to the company in regards to their poor customer service. Their response was less than comforting. It basically amounted to...deal with it(it being the problems I had encountered with them). I felt as though the CS reps there are just a bunch of college kids without a lot of training in how to deliver proper customer service. I left most of my encounters with them thinking...what a bunch of @$#%*@. Although I enjoyed being able to rent their cars by the hour, I ended up canceling my account due to my issues with them that could have been reconciled.