Today, the idea of renting cars by the hour is commonplace, one reason the nonprofit decided to sell I-GO CarSharing to Enterprise Holdings, I-GO Chief Executive Sharon Feigon said Tuesday.
Terms of the deal, which was set to close Tuesday, were not disclosed.
Enterprise Holdings, based in St. Louis, owns the flagship Enterprise Rent-A-Car brand as well as National Car Rental and Alamo Rent A Car. Enterprise has been acquiring car-sharing concerns; I-GO was the last major independent remaining.
Feigon said that with Enterprise's backing I-GO will "grow bigger and stronger."
"I-GO's 10 years old," she said. "We've done very well. We brought car sharing to the market, we introduced the idea and we grew it.''
In an email, Enterprise said it plans to update about a quarter of I-GO's 250 cars within the next two weeks and to expand into new neighborhoods. The company also said a mid- to longer-term goal is to provide I-GO members automatic access to car sharing in other cities and that it hopes to continue I-GO's relationship with the Chicago Transit Authority. "We look forward to working with them for the long term,'' Enterprise said.
The deal was structured so that the Center for Neighborhood Technology, an original investor, would be paid back from proceeds of the sale by Bucktown-based Alternative Transportation for Chicagoland Inc., formerly I-GO. Alternative Transportation will continue to focus on other ways to live without a car in Chicago, Feigon said.
For example, it's working on a pilot project that would allow car owners to share their cars by the hour with people who don't have cars.
Car sharing has grown in popularity, seen as a simpler alternative to traditional car rentals in cities and on college campuses. It allows users to pick up a car from a nearby parking space rather than trudging out to an airport or rental car store for trips of an hour or two. Gas and insurance are included, unlike with traditional car rentals.
Avis earlier this year bought I-GO's far-larger rival Zipcar for about $500 million. Zipcar had 775,000 members as of March, and serves 20 cities, including Chicago, and 300 colleges. Avis Budget Group Inc. is the third-largest U.S. rental car company, behind Enterprise and Hertz Global Holdings Inc.
Hertz started its own car-sharing service in 2008 and in 2009 bought Eileo, a car-sharing service based in Paris.
Enterprise acquired PhillyCarShare, a Philadelphia-based nonprofit, in 2011 and last year Mint Cars On-Demand, which serves more than 8,000 members in New York City and Boston.
I-GO, with 23 employees, serves 15,000 members in 40 neighborhoods. The goal was to have cars on every block of Chicago's 200-plus neighborhoods. Its mission was to provide affordable transportation to everyone regardless of neighborhood or income.
Enterprise Holdings, based in St. Louis, owns the flagship Enterprise Rent-A-Car brand as well as National Car Rental and Alamo Rent A Car. Enterprise has been acquiring car-sharing concerns; I-GO was the last major independent remaining.
Feigon said that with Enterprise's backing I-GO will "grow bigger and stronger."
"I-GO's 10 years old," she said. "We've done very well. We brought car sharing to the market, we introduced the idea and we grew it.''
The deal was structured so that the Center for Neighborhood Technology, an original investor, would be paid back from proceeds of the sale by Bucktown-based Alternative Transportation for Chicagoland Inc., formerly I-GO. Alternative Transportation will continue to focus on other ways to live without a car in Chicago, Feigon said.
For example, it's working on a pilot project that would allow car owners to share their cars by the hour with people who don't have cars.
Car sharing has grown in popularity, seen as a simpler alternative to traditional car rentals in cities and on college campuses. It allows users to pick up a car from a nearby parking space rather than trudging out to an airport or rental car store for trips of an hour or two. Gas and insurance are included, unlike with traditional car rentals.
Avis earlier this year bought I-GO's far-larger rival Zipcar for about $500 million. Zipcar had 775,000 members as of March, and serves 20 cities, including Chicago, and 300 colleges. Avis Budget Group Inc. is the third-largest U.S. rental car company, behind Enterprise and Hertz Global Holdings Inc.
Hertz started its own car-sharing service in 2008 and in 2009 bought Eileo, a car-sharing service based in Paris.
Enterprise acquired PhillyCarShare, a Philadelphia-based nonprofit, in 2011 and last year Mint Cars On-Demand, which serves more than 8,000 members in New York City and Boston.
I-GO, with 23 employees, serves 15,000 members in 40 neighborhoods. The goal was to have cars on every block of Chicago's 200-plus neighborhoods. Its mission was to provide affordable transportation to everyone regardless of neighborhood or income.
Kathy Tholin, chief executive of CNT, said, "We couldn't be more excited'' about Enterprise buying I-GO, which it backed from the outset. She said the concept was discovered in Europe by a CNT staffer, and that I-GO was among the first nonprofit car-sharing services in the United States. CNT, an innovations lab, will use its proceeds from the transaction to invest in other urban initiatives, Tholin said.
Feigon said I-GO was approached by several companies over the years, but it believed Enterprise was the best fit for serving neighborhoods. The company, she said, is interested in retaining all of I-GO's 23 employees as well as a local call center.
Mark Warner, who lives in Wicker Park, has been an I-GO user since the company's birth.
He said he uses the service for his business, MDW Consulting Inc., a fundraising consultancy where he is president. He said it is less expensive than owning a car and renting a neighborhood parking space.
"It sounds like a deal that could be very beneficial because it could bring new capital that they could invest in other businesses,'' Warner said. He said he hopes it means he will be able to tap Enterprise's network of vehicles when he leaves the Chicago area.
Gabe Sulkes, 23, moved to Chicago in August 2011 with no plans to buy an automobile, but last year found he needed one to haul things back to his Bucktown apartment.
"As a frugal hipster in Chicago, I decided to go without a car and just use my bike as a means of sustainable transportation," said Sulkes, policy adviser at the Illinois Department of Transportation's Office of Planning and Programming.
That combination works well 90 percent of the time, he said. But the Cornell University graduate added, "Every time I found an object on Craigslist and couldn't balance it on my bike, I would take out a car," he said.
Sulkes said he opted for membership in I-GO to support a local company, and he liked being able to use one card to access cars and ride the CTA.
Source : The Chicago Tribune Business, by Julie Wernau, May 28, 2013
Feigon said I-GO was approached by several companies over the years, but it believed Enterprise was the best fit for serving neighborhoods. The company, she said, is interested in retaining all of I-GO's 23 employees as well as a local call center.Mark Warner, who lives in Wicker Park, has been an I-GO user since the company's birth.
He said he uses the service for his business, MDW Consulting Inc., a fundraising consultancy where he is president. He said it is less expensive than owning a car and renting a neighborhood parking space.
"It sounds like a deal that could be very beneficial because it could bring new capital that they could invest in other businesses,'' Warner said. He said he hopes it means he will be able to tap Enterprise's network of vehicles when he leaves the Chicago area.
Gabe Sulkes, 23, moved to Chicago in August 2011 with no plans to buy an automobile, but last year found he needed one to haul things back to his Bucktown apartment.
"As a frugal hipster in Chicago, I decided to go without a car and just use my bike as a means of sustainable transportation," said Sulkes, policy adviser at the Illinois Department of Transportation's Office of Planning and Programming.
That combination works well 90 percent of the time, he said. But the Cornell University graduate added, "Every time I found an object on Craigslist and couldn't balance it on my bike, I would take out a car," he said.
Sulkes said he opted for membership in I-GO to support a local company, and he liked being able to use one card to access cars and ride the CTA.
Source : The Chicago Tribune Business, by Julie Wernau, May 28, 2013
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