Zipcar
An Introduction to 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 to pick up a car from their nearest parking lots located at strategic points throughout metropolitan areas. The added convenience over the traditional car rental business model, coupled with Zipcar’s first mover’s advantage in the US market, led Zipcar to be the largest car-sharing company in the world, with a total of 570,000 members and 8,000 cars.
Zipcar’s Service Proposition – 4 Simple Steps to Driving a Zipcar
Firstly, new users are required to apply for a Zipcar membership which costs about USD60 annually. Secondly, users proceed to reserve a specific car model at their preferred nearest location, via phone, online or the Zipcar mobile application. Thirdly, users proceed to their reserved cars and unlock their cars by having an RFID scanner located on the car’s windscreen scan their assigned Zipcards. Lastly, users return their cars to designated parking lots and will be subsequently billed on a per-hour basis, without having to pay for fuel or insurance costs.
Zipcar’s Four Market Segments
The bulk of Zipcar’s operations is located within the US, although it does operate in selective cities of Canada and the UK. Its revenues come from the following four market segments. Individual Membership | Servicing individuals who prefer car-sharing to urban car ownership due to significant cost savings | Universities | Working with universities to address the lack of parking lots by providing car-sharing to staff and students and reducing the
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 to pick up a car from their nearest parking lots located at strategic points throughout metropolitan areas. The added convenience over the traditional car rental business model, coupled with Zipcar’s first mover’s advantage in the US market, led Zipcar to be the largest car-sharing company in the world, with a total of 570,000 members and 8,000 cars.
Zipcar’s Service Proposition – 4 Simple Steps to Driving a Zipcar
Firstly, new users are required to apply for a Zipcar membership which costs about USD60 annually. Secondly, users proceed to reserve a specific car model at their preferred nearest location, via phone, online or the Zipcar mobile application. Thirdly, users proceed to their reserved cars and unlock their cars by having an RFID scanner located on the car’s windscreen scan their assigned Zipcards. Lastly, users return their cars to designated parking lots and will be subsequently billed on a per-hour basis, without having to pay for fuel or insurance costs.
Zipcar’s Four Market Segments
The bulk of Zipcar’s operations is located within the US, although it does operate in selective cities of Canada and the UK. Its revenues come from the following four market segments. Individual Membership | Servicing individuals who prefer car-sharing to urban car ownership due to significant cost savings | Universities | Working with universities to address the lack of parking lots by providing car-sharing to staff and students and reducing the
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