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Zipcar case study

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manshbalwani

Zipcar pioneered the car sharing business model, which allows members to reserve vehicles by the hour or day from a network of reserved parking spots. The summary evaluates Zipcar's initial business plan for its launch in Boston, including a $25 application fee, $300 refundable security deposit, $300 annual fee, and per-hour and per-mile usage fees. It also outlines Zipcar's strategy to handle reservations through its website and phone support, develop wireless in-car technology, and market the service to college-educated individuals in urban areas seeking an alternative to expensive car ownership and parking.

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Zipcar : Refining the Business ModelByGroup 4
ConceptCar sharing business initiated in Switzerland in 1987.Organized car sharing was the coordinated use of vehicles by various subscribers in succession and Independently of one another.Member can reserve any car in the network
Concept Best SuitedUrban LocationsLarge number of potential userExpensive ParkingNeed to drive limited distanceCollege-educated individual were the most receptive to the proposition
BenefitsConvenientEasy to useFreedom to travelHassle free ownershipCost savingEnvironmentally friendly one car eliminates the need of 7.5 individual owned cars
Course of ActionCompany Web SiteTelephone SupportTechnology development - challenge- admit only confirmed driver, capture usage dataPrice Structure security fees, initiation fees, annual fees, monthly fees, per mile fees, per mile fee and hourly rates
1st Business Plan$25 - nonrefundable application fee$300 - fully refundable security deposit$300 - annual subscription feeAdditional member - $1.5 per hour, $.40 per mile$20 fine for late returnAssumed annual renewal rate for members 95%40% utilization of vehicles. Where as European Companies 50% utilization of vehicles Assumed avg. member would take 4 trips per month at an avg. of 4 hours and 22 miles per trip
Users were expected toHandle simple maintenance themselvesRefuel and submit receipt for reimbursementKeep the car cleanTake responsibility of any traffic or parking tickets incurredReturn to its original location before the reservation time expired
Planned LaunchBostonInsufficient and expensive off-street parkingLarge number of college-educated and web connected individual
CompetitorsCommunAuto Canada - Quebec City 1994 - Montreal - 1995Portland based Car sharing 1998Seattle based Flexcar 2000Potential Competitors Traditional car rental agencies Hertz and AvisCar manufacturers
How does Zipcar work?Web orAutomated PhoneWireless in-cartechnology
Reserve a specific car in a few seconds on the web..
Convenience and SecurityAccess to a Vehicle Only With An Active Reservation
Financing the ventureBuilding the technology platform
Continuing the search for funding
Naming the businessStarting zipcarMarketingContinuing the search for financing and building the management team
ProgressGrowth prospects and the continued search for fundingExhibit 1 ( Economics of individual Car ownership)Exhibit 2 ( Population of top 20 U.S markets)
Car Sharing on Rise
Conclusion

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Zipcar case study

  • 1. Zipcar : Refining the Business ModelByGroup 4
  • 2. ConceptCar sharing business initiated in Switzerland in 1987.Organized car sharing was the coordinated use of vehicles by various subscribers in succession and Independently of one another.Member can reserve any car in the network
  • 3. Concept Best SuitedUrban LocationsLarge number of potential userExpensive ParkingNeed to drive limited distanceCollege-educated individual were the most receptive to the proposition
  • 4. BenefitsConvenientEasy to useFreedom to travelHassle free ownershipCost savingEnvironmentally friendly one car eliminates the need of 7.5 individual owned cars
  • 5. Course of ActionCompany Web SiteTelephone SupportTechnology development - challenge- admit only confirmed driver, capture usage dataPrice Structure security fees, initiation fees, annual fees, monthly fees, per mile fees, per mile fee and hourly rates
  • 6. 1st Business Plan$25 - nonrefundable application fee$300 - fully refundable security deposit$300 - annual subscription feeAdditional member - $1.5 per hour, $.40 per mile$20 fine for late returnAssumed annual renewal rate for members 95%40% utilization of vehicles. Where as European Companies 50% utilization of vehicles Assumed avg. member would take 4 trips per month at an avg. of 4 hours and 22 miles per trip
  • 7. Users were expected toHandle simple maintenance themselvesRefuel and submit receipt for reimbursementKeep the car cleanTake responsibility of any traffic or parking tickets incurredReturn to its original location before the reservation time expired
  • 8. Planned LaunchBostonInsufficient and expensive off-street parkingLarge number of college-educated and web connected individual
  • 9. CompetitorsCommunAuto Canada - Quebec City 1994 - Montreal - 1995Portland based Car sharing 1998Seattle based Flexcar 2000Potential Competitors Traditional car rental agencies Hertz and AvisCar manufacturers
  • 10. How does Zipcar work?Web orAutomated PhoneWireless in-cartechnology
  • 11. Reserve a specific car in a few seconds on the web..
  • 12. Convenience and SecurityAccess to a Vehicle Only With An Active Reservation
  • 13. Financing the ventureBuilding the technology platform
  • 14. Continuing the search for funding
  • 15. Naming the businessStarting zipcarMarketingContinuing the search for financing and building the management team
  • 16. ProgressGrowth prospects and the continued search for fundingExhibit 1 ( Economics of individual Car ownership)Exhibit 2 ( Population of top 20 U.S markets)