Many More Locations
Shareholders want to see company profits that continue to grow over time. When Zipcar is swimming in profits from its existing locations, it would need to open more Zipcar locations across America so that profits continue to grow.
Zipcar lots can currently be found at major cities in 27 states, according to the company’s Web site, but if the company gets more competitive with traditional car rental companies like Hertz (Stock Quote: HTZ), Avis (Stock Quote: CAR) and Enterprise, Zipcars could be found just as easily as the other car rental companies are.
Private companies don’t have to follow the same strict rules that publicly-traded companies have to adhere to according to the Securities and Exchange Commission, but when Zipcar goes public, it will be required to make more detailed disclosures of its financial information under the Securities Exchange Act.
Zipcar will have to provide regular reports to its investors, but anyone can read them. So when Zipcar or any other company happens to raise the rates it charges consumers, you can find out whether your money has contributed to higher executive pay or better offerings for its customers, for example.