Zipcar for business is a great money and timesaving alternative to taxis, car services, rental cars, employee reimbursement and company fleets. Oct 14, 2016 alternative car rental service disguised as car sharing where the traditional duties of the rental clerks and check in agents have been passed on to the end user to report unclean cars, low gas or damage all of which generate revenue in the form o. Under the hood, the business model is fundamentally not very different from that of a traditional rental car company. The original carshare business model was a subscription model where members paid a monthly or annual fee to access the vehicles and then an hourly fee when they actually use the vehicles. It further explain how the business was developed, how improvement were made and what challenges were faced during the development of the business model. Porters five forces strategic analysis of the zipcar case study.
We provide ondemand access to cars by the hour or the day in cities and campuses around the globe. In recent years, zipcar has expanded its business model from the traditional round trip station based carsharing and was offering oneway car sharing from a to b and freefloating in select cities. The case describe several iteration of zipcar business model and financial plan. Analysis of business models for car sharing lgi consulting. While zipcars current service offering has allowed it to garner brand recognition and a 50% market share in the car sharing industry, competitive threats from large car rental companies such as hertz and enterprise make it imperative for zipcar to adapt its business model and position itself for longterm success9. Refining the business model case solution and second test case analysis. She believed that such a business could be equally successful in urban areas in the united states. Contrast zipcar with relayrides and getaround, both genuine peertopeer car rental marketplaces which tap into the existing and massive installed base of cars that people.
Provide inexpensive short term vehicles to customers at places where they need those cars and with a. However, the a to b model seemed less successful and so earlier this year zipcar closed its oneway program in seattle and only kept boston open. As opposed to car rental agencies, cars have dedicated parking spaces and can usually be found a short walk from. Analyze the business model of zipcar using porters five forces model threat of new entrants. Car sharing for business corporate car rental zipcar. At zipcar, customers share the use of cars and, as a result, rely on each other for their service experience. The innovative system has created compelling consumer and business value. You make a reservation online or by telephone for a very specific car in a specific location and that reservation gets sent wirelessly to the car. Chases care sharing venture, zipcar, is a typical example of a revenue model with multiple revenue streams. Zipcar did several things to jumpstart its new mobile model, but one of the first actions orchestrated a surprising employee experience that would immediately become a symbol of its new mobile. View notes zipcar from busx 170 at indiana university, bloomington. What are the best business models for carsharing startup. The basic business model for car sharing that zipcar and connectby hertz and other are rather profitable.
Zipcars industryleading proprietary technology platform. Refining the business model 803096 3 fall of 1999, she committed to the venture full time. Zipcar, a startup is organized around the idea of sharing motor vehicle use on a membership organization. Consumers businesses fleet management timeline 2000 founded by antje danielson and robin chase at cambridge, massachusetts 2006 launched in toronto and london 2007 merger with flexcar. There is a medium threat of new entrants on the market. Zipcar is an option, not the only optionmake zipcar pods available to people coming directly from mass transit available to complete a journey comforting to customers that they will have their car reserved and be able to complete their trip right awaythis location can also be considered an advertising expense the cars are highly visible in an.
Zipcar case study solution and analysis of harvard case. Get the zipcar refining the business model pdf form. Zipcar provides you with selfservice access to a diverse fleet of cars 247, with discounted driving rates monday through friday. Gas, secondary insurance, maintenance, and 180 miles per day are all included in membership. A unique selling point complete 247 selfservice access and hundreds of convenient locations allows zipcar to target markets. Zipcar focused their launch in boston, the 8th largest city in the us. Zipcar provides automobile reservations to its members, billable by the hour or day. Refining the business model 93 words 6 pages zipcar case case analysis template reading. Susan shaheen found in 2017 that most annual fees for stationbased carsharing services are between usd 30 and usd 70, with cars costing usd 3 to usd 11 per.
Its been close to two decades since our founders, robin chase and antje danielson, sat in a cafe in cambridge, massachusetts and decided to bring the european car. Zipcar is a startup organized around the idea of sharing car usage via a membership organization. Zipcar carsharing case study station based carshare movmi. The two founders divided the tasks along the lines of their respective areas of expertise.
Similar schemes are being considered by hertz, enterprise and uhaul. Zipcar is a capitalintensive business with low profit margins. This case describes several iterations of the zipcar business model and financial plan. Apr 29, 2010 zipcar is an option, not the only optionmake zipcar pods available to people coming directly from mass transit available to complete a journey comforting to customers that they will have their car reserved and be able to complete their trip right awaythis location can also be considered an advertising expense the cars are highly visible in an. Their attractive business model is something to be admired. Although the car rental system have existed long time, the hourly system was first introduced by zipcar. In this model, five forces have been identified which play an important part in shaping the market and industry. Learning objectives after studying this topic, you should understand. What is the potential of the business model in terms of opportunities, size of market, demand and competition. Jan 26, 2017 the platform business model is the business model used by practically all sharing platforms. Consumers businesses fleet management timeline 2000 founded by antje danielson and robin chase at cambridge, massachusetts 2006 launched in toronto and london 2007 merger with. Uber, on the other side, uses a platform business model and there is no differing view here, phew. Gan jian long ng heng chung, jaryl yong zhi yuan, bernard foo ce yao disclaimer.
Zipcar case analysis business model entrepreneurship. Zipcar doesnt just ask employees to innovate it shows. Zipcar needs additional funding if it hopes to survive and expand. The basis for its business model is a carsharing model where zipcar members pay for car use by the hour and by the mile. Danielson, on the other hand, continued working at harvard, spending evenings and weekends on the new venture. The business model chase had spent months developing was not working. Zipcar is the worlds largest car sharing and car club service combines the best of car rentals and car ownership hourly rental selfservice, multiple locations.
Pioneer a new business model for car ownership car sharing. Case facts several variations of the zipcar business model along with their financial plan. But not all who use a platform business model are considered a sharing platform e. Slideshare uses cookies to refining functionality and performance, and to provide you with relevant advertising. The case explains the development of zipcar business model. Refining the business model 4 norway, the united kingdom, france, and italy. Take your hr comms to the next level with prezi video. This car sharing service allows members to access cars parked at designated spots through zipcards which are issued to members and provide convenience to individuals who do not own a car and yet do not want to go through the hassle of keeping a private car. Refining the business model answer a car pooling is one of the most innovative services that have been provided to the individuals. Once the business model is proven, there is a lot of potential to roll out zipcar to other larger cities giving zipcar good growth potential. Refining the business model 2 term, ondemand use of private cars conveniently located and easily accessible to service subscribers. These iterations include a very early version and a version developed just prior to the launch of the business, as well as data from the first few months of. Zipcar carsharing case study station based carshare.
First, zipcar has a very user friendly website and app that allows customers the ability to find a car within a short distance, choose which model of car he wants, and reserve the car. This is a comprehensive guide to the platofrm business model. Wordofmouth promotion is vital to zipcars membershipbased business, so the company encourages customer input. Robin chase, zipcar, and an inconvenient discovery mit sloan. Zipcar refining the business model fill online, printable, fillable. Alternative car rental service disguised as car sharing where the traditional duties of the rental clerks and check in agents have been passed on to the end user to report unclean cars, low gas or damage all of which generate revenue in the form o. Information brief carsharing for business zipcar case study. The platform business model is the business model used by practically all sharing platforms. When youre done, return the car to the same location you picked it up from, then lock up with your zipcard. Differentiated zipcar from car ownership and car rental. To unlock, tap your zipcard to the card reader on the windshield. Robin chase, ceo and cofounder of zipcar immediate issueproblem being faced.
This gave it a nice test area to see whether the business model would be viable. Zipcar is an american carsharing company, a subsidiary of avis budget group. Car sharing for business corporate car rental zipcar business. Clipping is a handy way to collect important zipcar case want to go back to later. The report has been commissioned in order to aid venture capitalists in assessing potential risks and rewards associated with investment in zipcar, and evaluating the strengths and weaknesses of zipcar as a potential investment project. In recent years, zipcar has expanded its business model from the.
In october 2000, with just a couple of weeks until the threemonthold car sharing startup closed on its first round of funding, zipcar cofounder robin chase made an alarming discovery. Zipcar parks cars throughout dense metropolitan areas and university towns for people to use by the hour and by the day instead of driving their own cars. It is a selfservice business, and more than 95% of member activity ranging from reservations to billing all takes place online. Include a very early version and a version developed just prior to the launch of the business, includes the data from the first few months of operations. Based on its strategic advantage and business model, strategic value and expansion into smaller us cities, other segments of the market and other countries were analysed and identified with clear implementation direction and recommendation.
Toyota and ford are exploring ways to work with zipcar. To maximize their effectiveness, color cases should be printed in color. And our grant program donates hundreds of thousands in driving credit to nonprofit groups across north america, supporting a variety of. How is zipcars business model different from its competitors.
Comparing the business models of zipcar ondemand and uber platform. Synopsis zipcar is a startupbusiness model organized around the idea of sharing car usage by membership organization. Used in the first module of a harvard business school course on managing service operations, which addresses managing the operating role of customers 606032. Some businesses might even use carsharing as a strategy to reduce the need. Zipcar has spent nearly a decade building the industrys leading technology and processes required to operate its sustainable, high growth business model. Build a secure system to control and monitor member access. Analyze the business model of zipcar using porters five. The commuter membership gets you exclusive access to a zipcar and parking spot, mondayfriday. The case provoke the reader to analyze the underlying economics and business model of the company and. Refining the business model case study solution, by myra m. The zipcar fleet management solution delivered by cingular wireless has. Zipcar business model canvas for zipcar joseph grozier. Zipcar business model canvas for zipcar joseph grozier key. Zipcar case study pdf get the zipcar refining the business.
We use your case profile refining pdf data to personalize ads and to show you more relevant ads. Zipcar was founded in 2000 by two cambridge massachusetts residents. They do not require maintenance, since is maintained mostly by users, and the gas millage is not very costly since is used in the city for ve. Zipcar, joseph grozier key partners key activities value propositions car suppliers local.
Zipcar helps nonprofits do more with simple access to ondemand transportation. These iterations include a very early version and a version developed just prior to the launch of the business, as well as data from the first few months of operations. Zipcar table of contents 0 evaluation of the potential venture and the progress made by chase 3 2. You can learn more about zipcar for business and apply by clicking here. From zipcar to the sharing economy arun sundararajan. Feb 08, 2018 the original carshare business model was a subscription model where members paid a monthly or annual fee to access the vehicles and then an hourly fee when they actually use the vehicles. Zipcar faces many strategic decision ahead as they begin to expand their business. Zipcars is a registered trademark, all contents used are only for presentation purposes 2. Invision employees share their remote work secrets.