Zipcar to debut in London, gets $25m in capital

Zipcar Inc., the Cambridge car-sharing service launched in 2000 with a dozen Volkswagen Beetles, said yesterday that it is making its European debut today in London.

"London is a beachhead for us to think about a pan-European strategy," said chief executive Scott Griffith, who estimated there are about 50 markets "worldwide where our business model can work."

Zipcar currently has 2,500 vehicles in Boston, New York, Chicago, and other US locations, as well as in Toronto.

The company's business model is to provide urbanites with hourly or daily access to a wide variety of conveniently located vehicles, at a variety of rates.

Zipcar also said it has closed a $25 million round of equity funding led by Greylock Partners , a venture capital firm with offices in Waltham. Other participants in the round were Globespan Capital Partners and Benchmark Capital .

"We've reloaded our resources," Griffith said.

According to Zipcar, it makes more sense for many urbanites to belong to what it calls its car-sharing service than to own a car. A new sedan can cost a city dweller $700 a month after additional costs such as insurance, gas, and parking are included, the company says.

Zipcar can also help the environment by reducing the number of vehicles in a city, the company says.

Giving members a variety of choices in selecting vehicles adds to Zipcar's appeal, Griffith said.

London Zipcar members, for example, can choose from among Hondas, Mini Coopers, and BMWs, he said.

Chris Reidy can be reached at reidy@globe.com.