What service attributes does Zipcar offer its customers? What is it asking its customers to give up? •
Convenience – customers can make reservations online without having to purchase a car but rent one and pick up in a nearby area/neighborhood. Customers just needed to pay monthly fees and put in a deposit to be able to have access. •
Flexibility – customers can make reservations online and for certain time frames (does not have to be for the full day). Customers can also choose the type of car to drive (BMW, Honda, etc). Reservations could also be made minutes before or a year before online or via phone. There were different plans that members could purhase depending on usage. •
Easy to Use – The members used a car to open the Zipcar for usage and made it easier to coordinate operations. •
Cost saving – customers did not have to pay for gas, insurance, parking spots, etc. It can also be a low-cost alternative to renting a car or ownership. •
Feel good about yourself – Not wasteful approach – car sharing and help reach environmental goals.
Zip car asks its customers to give up:
Security/Dependability (Car Ownership) of having a car and being on time. The timeliness of your rental can often be dependent on the individual before you returning the car. The individual beforehand typically can affect your overall experience. •
Additionally, Zipcar asks its customers to give up having face-to-face customer service. All reservations and issues needed to be resolved on the phone or online which could cause delays depending on the volume. •
Limited availability - This could potentially be an issue in the event the cars in your area are sold out. Although Zipcar is in different cities around the US, they are still pretty limited and may be in smaller markets that could benefit from this service.
What is the funding mechanism for Zipcar?
It seems that the funding mechanism is to charge the application through membership and usage fees....
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