Zipcar - A Product Becomes a Service
by TreeHugger 
on 10.26.04
Zipcar is a cool example of a product being made into a service—i.e. people pay to use a service (use of a car) instead of buying the product (the car itself). For those where Zipcar hasn’t yet hit—so far it’s in MA,NY,NJ,NC and DC—Zipcar is a like a community rental service, you become a member and then use the service whenever you want. It’s there for you when you need it, but isn’t a hassle when you don’t…
Plus, Zipcar claims to reduce car usage by individuals by as much as 50% and also that one Zipcar replaces 7-10 privately owned cars, giving people the option to share cars instead of everyone buying and using their own, which is good in ways that we’re sure we don’t need to explain to you, savvy reader.
Now imagine if we implemented similar services for things like power drills and chainsaws—things are that handy to have, but that you don’t necessarily use all the time. By creating community centers for use, we’d eliminate tons of barely-used product, and therefore, waste.
Now imagine if consumers bought things like their oil tanks and washing machines based on the services provided to them instead of based on the object itself. It would encourage people and vendors alike to value the service, instead of the material item, thereby encouraging long-lasting products—and good service. Now we begin to see the bigger picture that something like Zipcar presents to our brave new world. Check out more on the concept of products becoming services in Natural Capitalism: Creating the Next Industrial Revolution!
Zipcar is obviously an excellent service in urban settings, a little trickier in suburban/rural ones. But we like where their taking us. Rates vary by area, but are generally about $5-8/hour and $55-65/day, including gas. Likely, a lot cheaper and more convenient than owning your own behemoth.::Zipcar
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There is also a similar service in the SF Bay Area: City Car Share http://www.citycarshare.org
Seattle and other places also have Flex Car: http://www.flexcar.com/
"Now imagine if we implemented similar services for things like power drills and chainsaws—things are that handy to have, but that you don’t necessarily use all the time."
actually, the san francisco library has a tool-lending branch:
http://sfpl.org/librarylocations/branches/toollending.htm
Chicago has I-Go.
http://216.211.131.236/chicago-i-go/
Except for the possibility of being more convenient, this is no different a concept to your standard rental car company.
For marketing the concept of a car being a product of service, yes - but not in a pure sense. This adds a virtual service layer to a product. The vehicle is still being bought to be thrown away, but in that time it's being rented out.
If car companies were the ones providing this service, with short and long term 'rentals' (where you could either drive it and park it at designated parking spaces, or own it like a regular lease) or return incentives on a purchase (where you 'own' the car, but are inclined to give it back when you are ready for the next model) and combined it with the capability of being able to disassemble and reuse the components of the car, then we'd be looking at a product of service that implements a waste equals food scheme - that would be something different.
A car rental company advertising its services to more than the standard traveller is a small step towards better thinking. Since you don't see everyone on the road driving rental cars in the first place shows that it'll take an attitude change in the consumer before a 'service provider' will make a serious profit. Heavy marketing on this concept might be the first step in doing that.
I'd personally prefer short term rental vehicles to either be hybrids or electric with their designated parking spaces to have high-speed charging terminals.
Not even a new idea, but it would be a real step in implementing electric cars again.