One car, fifty people. That’s America Online co-founder Steve Case’s vision as his Washington-based investment firm, Revolution LLC, acquires Flexcar, an urban car-sharing service. The company hopes to provide 20,000 cars to 1 million people by 2010. Lee Iacocca says “Fo shizzle”.
The service is relatively ingenious for urbanite consumers who rely primarily on mass transit, only needing a car every now and then. Similar to a car rental service, Flexcar members pay about $40 per year and between $7-$10 per hour or $35-$90 per day to reserve a car for temporary use. It differs from rentals, however, in that the price covers insurance, gas, and maintenance. Members only pay for the time they use the car.
Lee Iacocca was selected as a senior advisor for the company and the rollout campaign expected to increase Flexcar’s national reach by up to 50% in the next 100 days.
“Car sharing is a great option for millions of Americans, especially those who live in cities,” said Iacocca, the former Chairman and CEO of Chrysler Corporation. “I look forward to working with Steve Case to build Flexcar into a great success and an iconic brand name that becomes synonymous with car sharing.”
The 20,000 car goal is a lofty one. As of now, Flexcar operates just 450 cars in more than 30 cities in six major metropolitan areas. Revolution’s acquisition is expected to help the company expand into new markets including New York, Boston, Miami, Philadelphia, San Francisco, and Austin.
The cars are nice, too. Mostly gas-electric hybrid cars, they come with on-board navigation and iPod adapters.
“With gas prices soaring, Flexcar offers a better choice, especially for drivers who don’t use a car that often, or who commute to work via mass transit. Flexcar members only pay for a car when they actually use it: they don’t have to shell out for car payments, taxes, insurance, maintenance and parking-let alone gas at $3 per gallon,” Case noted.
