Zipcar Case Study

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Zipcar: Refining the Business Model
Zipcar is attractive to the investors because it has a good business model. There are 9 building blocks for a successful business model: Customer Segments. Zipcar targets at the people who do not want to own a car but occasionally wants the convenience to use a car in the urban locations, where there is a dense base of potential users, parking was expensive, and the need to drive is limited. In Unite States, this market is large and virtually untouched. Value Propositions. Different from the competitors, Zipcar tries to deliver convenience, ease of use, freedom to travel, and the hassle-free “ownership” for customers. Zipcar provide membership, members can immediately rent and return the car in the nearest place. All the reservations and billings are done online and it is hassle free. Besides, it provides lower rate to attract customers. Channels. Through membership and online reservation, Zipcar can easily and quickly delivers its services to the customers. In addition, cars are parked in designated spaces in neighborhoods convenient to users; they only need five-minute walk to a parking location. Customer Relationships. Zipcar provide membership. Members would be issued unique proximity cards called Zipcards. Members can make a reservation online, and just swipe the Zipcards to get access to the rental cars. Revenue Streams. The revenue comes from deposit, membership fee and rental fees. According to the financial plan, the annual growth rate is expected to be 30 %. From year 2 to 5, the net income before tax will increase to 2 times of the previous year. Key Resources. Zipcar has already owned about 20 cars as key resource. Besides, they had contracts with many large institutions for parking. For human resource, ZipCar has a strong management team with the skills of business, financial planning and technical expertise. Key Activities. On the one hand, Zipcar has built up the technology platform to ensure its services....
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