Zipcar case study
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Zipcar case study

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Zipcar case study Zipcar case study Presentation Transcript

  • Zipcar : Refining the Business Model
    By
    Group 4
  • Concept
    Car 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 Suited
    Urban Locations
    Large number of potential user
    Expensive Parking
    Need to drive limited distance
    College-educated individual were the most receptive to the proposition
  • Benefits
    Convenient
    Easy to use
    Freedom to travel
    Hassle free ownership
    Cost saving
    Environmentally friendly – one car eliminates the need of 7.5 individual owned cars
  • Course of Action
    Company Web Site
    Telephone Support
    Technology development - challenge- admit only confirmed driver, capture usage data
    Price 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 fee
    Additional member - $1.5 per hour, $.40 per mile
    $20 fine for late return
    Assumed 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 to
    Handle simple maintenance themselves
    Refuel and submit receipt for reimbursement
    Keep the car clean
    Take responsibility of any traffic or parking tickets incurred
    Return to its original location before the reservation time expired
  • Planned Launch
    Boston
    Insufficient and expensive off-street parking
    Large number of college-educated and web connected individual
  • Competitors
    CommunAuto – Canada
    - Quebec City – 1994
    - Montreal - 1995
    Portland based Car sharing – 1998
    Seattle based Flexcar – 2000
    Potential Competitors
    Traditional car rental agencies – Hertz and Avis
    Car manufacturers
  • How does Zipcar work?
    Web or
    Automated Phone
    Wireless in-car
    technology
  • Reserve a specific car in a few seconds on the web…..
  • Convenience and Security
    Access to a Vehicle Only With An Active Reservation
  • Financing the venture
    • Building the technology platform
    • Continuing the search for funding
    • Naming the business
  • Starting zipcar
    Marketing
    Continuing the search for financing and building the management team
  • Progress
    Growth prospects and the continued search for funding
    Exhibit 1 ( Economics of individual Car ownership)
    Exhibit 2 ( Population of top 20 U.S markets)
  • Car Sharing on Rise
  • Conclusion
  • Thank you