Zipcar is a car sharing service that provides vehicles to users for hourly or daily rental. It offers flexibility as users can reserve vehicles as little as 30 minutes before use. Vehicles are located widely across Singapore for convenience. Zipcar aims to offer an affordable and easy alternative to taxi or private car ownership through features like inclusive petrol, insurance, and parking. It generates revenue through subscription plans and hourly rental fees. Zipcar also partners with other companies to help manage its fleet and operations.

1. MT4002
TECHNOLOGY MANAGEMENT STRATEGY
PRESENTERS:
GAN JIAN LONG
NG HENG CHUNG, JARYL
YONG ZHI YUAN, BERNARD
FOO CE YAO
*DIsclaimer: ZipCars is a registered trademark, all contents used are only for presentation purposes

2. INTRODUCTION TO ZIPCARS

3. ZipCar Services
Comprehensive
payment plan:
Petrol, Insurance,
parking and usage all
included
Coverage
Car are Widely
located
What ZipCar
provides
Flexibility:
Pay per use, reserve
as last as 30 mins
before usage
Convenience:
Pick up the vehicle
as per desired
location

4. How to use ZipCar
Locate a Car
Near You
One Time
Registration
• Smart Phone App
• Internet
• Phone Services
• Pay Per use
• Pre-Pay Membership
Car Information &
Location is sent to
User
Upon Confirmation
Return ZipCar @ any
time after using
Unlock Car with
ZipCard and Drive
Off!
• Nearest ZipCarpark
• Any other Carparks &
inform us

5. What’s new!
Customer
Computer
Car Rental
system
Company
Car
GPS system
Car

6. ZipCar Charges
Sedan Car
MPV (7 Seater)
Free Distance
inclusive (Km)
Every ½
Hour(minimum
usage)
S$9
S$12
10
12 Hour
S$150
S$200
150
Excessive charges
(Per min)
S$0.40
S$0.40
-----
Excessive charges
(Per km)
S$0.40
S$0.40
-----
Parking at ZipPark
Free
Free
-----
Parking at NonZipPark*
S$5
S$5
-----

7. VALUE PROPOSITION

8. Value Proposition
Ease &
Convenience
Comparable &
Competitive Cost

9. Ease & Convenience
ZipCar’s Efficient Technology
Platform
24/7 Services
Easy to Use
-Easy membership sign up -Locate nearest ZipCar
with mobile app from
-online and wireless
anywhere
reservations
-Keyless vehicle access
Extra Convenience
-Free parking
-No fuel charges

10. Convenience: Where do
people usually looking for
Taxi?
• Shopping Malls
• Neighborhood HDB Areas
• Entertainment Areas

11. Strategic Location of ZipCars
Airports &
entertainment
areas
Shopping malls/
Furniture malls.
Or events areas
like expo
Vehicle
placement
concentration
HDB and
Housing Estates

12. ZipCar Placement Locations
Woodlands
Regional Hub
Changi Airport
Jurong
Regional Hub
Changi
Business Hub
One North
Regional Hub
Paya Lebar
Regional Hub
Marina
Cruise Center
Orchard &
Downtown Area
Tanah Merah
Ferry Terminal
Major Transportation Points
CBD
Regional Hubs
Places of Interest
Young Estates
Matured Estates

13. Value Proposition
 Comparable



& Competitive Cost
High Cost of & maintaining a Car
Sky rocketed prices of Singapore cars
Taxi prices and availability are always inconsistent
(GPS in car gets you to your destination at your shortest way possible)


Overcrowded public transports
High fixed prices per day car rental companies

14. Taxi Flagdown Rates Going Up
Dated: 22 Oct 2013
“…flagdown rates
starting $3.80 …
higher than the $3.50
and $3.70….”
“…SMRT also brought
up flagdown charge
from $3.60 to
$3.80….”

15. Cost Comparison
Mid Distance: Ang Mo Kio HUB  ION Orchard
(10.5KM in about 15Minutes)
ZipCar
• Half hour cost : $9
• Extra KM cost : $$0.40
• Total cost : $9.40
Taxi
•
•
•
•
Booking cost : $2.30
Flag down cost : $3.40
Metered Fare : $6.60 (gothere.sg)
Total cost : $12.30

16. Cost Comparison
Long Distance: Woodlands  CityHall
(26.3KM in about 25Minutes)
ZipCar
• Half hour cost : $9
• Extra KM cost : $6.80
• Total cost : $15.80
Taxi
•
•
•
•
Booking cost : $2.30
Flag down cost : $3.40
Metered Fare : $18.9 (gothere.sg)
Total cost : $24.60

17. Value Proposition
 Comparable



& Competitive Cost
High Cost of & maintaining a Car
Sky rocketed prices of Singapore cars
Taxi prices and availability are always inconsistent
(GPS in car gets you to your destination at your shortest way possible)


Overcrowded public transports
High fixed prices per day car rental companies

18. ZipCar is
much more
worth it!
Cost Comparison
ZipCar
Other Rental Co.
Hours rented on Sat: 12 hours
2 day car rental at Hertz $100/day
Hours rented on Sun: 12 hours
Insurance $30/day
Total no of hours: 24 hours
Petrol ~$40/day*
No need for Parking Fee
Day Parking ~$20/day#
Total cost on ZipCar = 2*$150 = $300
Parking Overnight at home $4/night
Total Cost $388
* Based on 150 km comparison matching ZipCar’s 12 hour lease
# Based on 2 Parkings within the Orchard Shopping Belt

19. WHY ZIPCAR?

20. Hourly Rental
ZipCar
Other Car Rental Co.
24 hours Availability
Retail Hours
Flexible Rental Timing
Fixed Daily Rental
Flexible Pick up/ Return
Locations
Fixed Pick up/Return
Location
Petrol Included
Petrol (Self Paid)
Basic Insurance covered
Insurance Additional Cost
Free Parking*
Parking at Own Cost

21. Point-to-Point
ZipCar
Taxi
Maximum Availability
Subjective Availability
No Booking Fees
Booking Fees
No Peak Hour Surcharge
Subjected to Peak Hour
Surcharge
Confirmation upon booking
Subjected to wait for booking
Cheaper for mid to long
distance
Expensive for mid to long
distance
Full Privacy
Less Privacy

22. Amy
• Weekend Driver
• Loves to Explore New Places
• She drives the car maximum for about
12 hours a day
• Lives in a HDB estate where parking
chargeable

23. CUSTOMER SELECTION

24. ZipCar’s Potential Customers
Cost Oriented
Customers
Eg.Public Transport
users
ZipCar’s
Customers
Convenience
Oriented
Customers
Eg. Car owners, Taxi
Passengers, Car Rental
Customers

25. Point-to-Point Users
Mobile Professionals
Shoppers
Tertiary Students

26. Daily Users Who Travels At Fixed Timing
Working Professionals

27. Word-of-Mouth Marketing
• Customer Referral Benefits
– Customers gain $10 Zip-credit for every newly
referred sign-up

28. VALUE CAPTURE

29. Value Capture
FEE FOR SERVICE
SUBCRIBTION
METHOD OF
VALUE
CAPTURE
ADVERTISMENT

30. Value Capture
Primary Revenue Model
Occasional Drivers
Preferred Customer
Priority Customer
•Rates at $9/half hour
•Prepaid: 100 hours
+$90 free credit
•No annual fee
•Prepaid: 1000 hours
+$1800 free credit
•No annual fee
•$20 Annual Fee
(1st year free)
One time $35 membership fees (includes Zipcard and $35 credit)

31. Tiered Advantages
Priority
Customers
Preferred
Customers
Occasional
Drivers
• Normal rates
• Least priority in
booking
• Loyalty discounts
• Higher
preferential over
priority booking
than Normal
Customers
• Most loyalty
discounts
• Top priority in
bookings

32. Value Capture
• Advertising
– ZipCar allows external advertisements on 50% of
its vehicles. Charges: $650/car/month.

33. Revenue Stream

34. SCOPE OF ACTIVITIES

35. Scope of Activities –
Operations Management
ZipCar’s Fleet
•1000 Owned &
•4000 Long Term Rented
Car Servicing
•Partnered Car Servicing Centers
•Maintenance Crew
ZipCar Technology Team
•Maintain ZipCar Systems & GPS
•ZipCar Website and Mobile App
•Fleet Management System
Frontline Crew
•Customer Service Staff
•Call Service Center
•Car Relocating Team

36. Scope of Activities –
Business Collaborations
Car Park Lots Management
•Strategizing Car Park Location Areas
•Obtain Season Car Park Lots
•Rent / Purchase Car Park Lots
Malls & Merchants Tie-Up
•Entice ZipCar Users to Merchants & Malls
•Parking Lot Tie-up
•Merchant Discounts etc.
Petrol Discounts
•Liaise with Petrol Companies
for cheaper fuel
Insurance
•Collaborate with insurance firm for
cheaper basic insurance
•Allow customers to purchase
additional insurance while booking

37. STRATEGIC CONTROL

38. Took up huge
amount of
vehicles
Barriers
•We would
to entry rent
up to 60%-70%
leasable vehicles
in the market
Strategic
Cost
control
effective
savings
•Petrol
Insurance: Ability
to get lower cost
packages
High start-up
cost
Business
•Fleet Size: •Maintenance:
•Car-parks:
Sustainability
Amount of cars workshop to of
Number
One
could not be handle the car
Car-parks
own over short
located
maintenance around
period of time.
the Island
reduces the cost
compared to
outsource

39. Thank you!

40. Q&A