Founded in 2000, Zipcar (NYSE:ZIP) is now the world’s largest car-sharing service, with more than 560,000 members (called Zipsters). Here’s how the service works: A Zipster will use the Web, iPhone or traditional phone to locate a car and use a Zipcard to unlock it. He or she will then be charged only for the time it is used. It’s an innovative model and would not be possible but for the cutting-edge technologies that have emerged over the past decade.
As a testament to its success, the company has just pulled off an IPO, Zipcar issuing 9.7 million shares late Wednesday at $18 each, which was above the $14-$16 expected range. And so far in Thursday’s trading, the stock price is up a sizzling 61%.
But perhaps the action is too frothy, or is there still value for investors? Here’s a look at the pros and cons: Read