Uh Oh, ZipCar's CEO Stepped Down Right After Its Merger with Avis

Reuters
Rebecca Greenfield 1,854 Views Mar 15, 2013

Hours after that $500 million Avis merger became official, the Zipcar CEO Scott Griffith announced his departure from his car-sharing helm, which could signal the beginning of the end of the beloved short-term rental service. Sure, it's possible he left because he just made a ton of money and he wants to do other things with his life and piles of cash (according to SEC filings, Griffith owned stock and had options at Zipcar that were potentially worth about $20 million in the merger). Griffith's farewell memo, via Boston.com, makes this sound like a clashing visions situation. He ominously writes: 

After a thoughtful review of the company’s needs over the next several years, I’ve concluded it’s best if I step back and give someone else the opportunity to put the pedal down and take Zipcar to the next level. This is a bittersweet decision because I don’t feel like my work here is completely done. 

"Company's needs" could be code for the new-found direction of the start-up that doesn't jibe with his vision. And that second part suggests he had certain plans that Avis did not like. This is exactly what people were afraid would happen. "The only way for Avis to realize its over-promised cost savings will be to force Zipcar to consolidate the two operations and become more like Avis in everything it does. Eventually, all the old Zipcar executives will be fired or will migrate somewhere else," wrote a very worried Steven Perlstein in Wonkblog. This is just the beginning of a long road to corporatization.  

But maybe all hope isn't lost yet. The president and COO of the company, Mark Norman, will succeed Griffith. So, at least someone with blood and sweat in the operation will be making the decisions.  Plus, Avis isn't the worst car rental company on the planet. 

Want to add to this story? Let us know in comments or send an email to the author at rgreenfield at theatlantic dot com. You can share ideas for stories on the Open Wire.

Topics: ,
Related Articles   More by Rebecca Greenfield

Will Avis Ruin Zipcar?

Did Zipcar Get Swindled on Its Massive IPO?

 

Emma Carmichael: What I Read

How to Emotionally Survive the 2013 Cicada Swarmageddon

D.C. Restaurants Are Against the D.C. Food Truck Invasion Because Terrorism

Elsewhere on the Web

User Comments

Please type your comment and click Post. If you’re not already logged in you will be prompted to log in or register

  • The Atlantic Wire on Twitter
  • The Atlantic Wire RSS Feed
  • The Atlantic Wire iPhone App