I have to be honest - I investigated Google Docs because I've used it extensively already and am trying to finish by Oct. 2! I promise to go back at a later date and examine ZohoWriter!
Google Docs is tops in my book. Why? - you don't have to have Word or Excel or PowerPoint on your computer in order to share the documents! This allows you to work anywhere you have a computer that has Net access. On my main computer at home I eschew Brother Bill's Office suite, instead using OpenOffice for my office productivity needs. It's powerful, open source, plays well with Microsoft, and is completely free. This leads to some conflicts when I have to bring work home, as was true in the spring when I had to work on preparing data from some lengthy spreadsheets for a major project in a short amount of time. Google Docs to the rescue! I was able to load my docs, make the necessary new docs from them, and save the new docs back to Google. I could also email the documents to all the people who needed them, both for comments and for final review. This is one of my Top 5 web-based tools!
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