Riley Eichhorn Zipcar: Refining the Business Model The idea for Zipcar began in 1999 when Antje Danielson approached Robin Chase with her new idea for a start up – car sharing. Danielson had observed the concept of car sharing on a vacation in Germany‚ which she noted was a trend throughout Europe. Chase agreed to partner with Danielson and they began to develop their business plan and to seek funding for it. The entrepreneurial opportunity is definitely large enough for Zipcar to capture value
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Zipcar Case Case Analysis Template Reading: Zipcar: Refining The Business Model Who: Robin Chase‚ CEO and Co-Founder of Zipcar Immediate Issue/Problem Being Faced: Zipcar needs additional funding if it hopes to survive and expand. In order to gain additional funding they would have to bring in there best arguements to why they should be funded by outside investors. On pages 1 and 11 it states that Chase needs to work on a pitch that will get investors to invest. In other words‚ she needs
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ZIPCAR value proposition Cost saving Convenience ZIPCAR is perfect answer for customers who wanted to rent a car for a few hours in their home city: - ZIPCAR value proposition - - Zipcar cost was cheaper than owning a car Convenience achieved by automation ( online booking‚ data transmission between car an system) ZIPCAR encourage use of public transport Eco Friendly ZIPCAR business model Customer relationshi p Car leasing Key components of ZIPCAR
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1. How is Zipcar’s business model different from its competitors? 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. When a car is rented through Zipcar‚ the insurance and gas cost are already included in the rental price. Other car rental companies have centrally located branches that may be far away from the customer and/or difficult to travel to. This is a
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Car-sharing & Zipcar Back in 2000‚ in lieu of overcrowding in the US car rental market‚ Zipcar implemented a blue ocean strategy and established its car-sharing business as the dominant alternative to car ownership. Compared to car rentals firms that charge users on a per day basis‚ Zipcar offers users the flexibility of deciding the number of hours and distance of car usage. In addition‚ unlike car rental firms which require customers to pick up the cars from their offices‚ Zipcar allows members
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Zipcar Case Study 2 — Zipcar Zipcar was an answer for customers who want to rent a car for a few hours in their home city‚ rather than for a few days from a traditional rental agency. Car reservations were for a specific pick up time and location around the city‚ often in neighborhoods so the customers need only to walk to pick up their reserved car. Customers applied for a Zipcard‚ which enabled them to reserve a car online and unlock their car when they arrive at the car’s location. The company
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Porter’s five forces applied to Zipcar Threat of new entrants: Potential new entrants include existing car rental firms‚ companies that currently supply cars to car-sharing businesses (such as Volkswagen)‚ and new start-up car-sharing ventures. As Zipcar is operating in only Boston‚ there are opportunities for new entrants (with sufficient resources) to establish themselves as dominant car-sharing service providers in other cities. This threat to the profitability of Zipcar’s planned future expansion
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has great potential. When analyzing Zipcar’s performance to date‚ we came across four major inconsistencies relating to the business model‚ which we believe require immediate attention. a) Initiation fees and security deposit: We believe that you need to waive off the initiation fee and security deposit‚ as convenience and cost savings are the main value drivers for Zipcar. We do realize that the deposit is currently essential for Zipcar’s operational structure‚ however‚ the benefits of waiving
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Zipcar: “It’s Not about Cars – It’s about Urban Life” Zipcar’s service is the benefit of having a car‚ without actually owning one yourself. Zipcar first started out with the focus on the green-minded customers using promotional pitches such as “We <3 Earth.” It wasn’t long before CEO Scott Griffith decided to expand the service to urban customers living in cities too big to own a car‚ but still needed a reliable‚ comfortable‚ and stylish way to get around. Zipcar strategically places its
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Luis Carlos Jauregui Arrieta (May 31st‚ 2013)! How would you assess the overall validity of the Zipcar business idea? To asses the overall validity of the business idea‚ an analysis of the Zipcar case was conducted. The opportunity‚ the team involved in the venturing‚ their high potential and the resources needed to start the company and make it growth were taken into consideration. There is a big opportunity to develop the idea in the U.S. even though they had competitors and potential
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