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Zipcar

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• 1. Zipcar : Refining the Business ModelByGroup 4
• 2. ConceptCar sharing business initiated in Switzerland in 1987.Organized car sharing was the coordinated use of vehicles by various subscribers in succession and Independently of one another.Member can reserve any car in the network
• 3. Concept Best SuitedUrban LocationsLarge number of potential userExpensive ParkingNeed to drive limited distanceCollege-educated individual were the most receptive to the proposition
• 4. BenefitsConvenientEasy to useFreedom to travelHassle free ownershipCost savingEnvironmentally friendly – one car eliminates the need of 7.5 individual owned cars
• 5. Course of ActionCompany Web SiteTelephone SupportTechnology development - challenge- admit only confirmed driver, capture usage dataPrice Structure – security fees, initiation fees, annual fees, monthly fees, per mile fees, per mile fee and hourly rates
• 6. 1st Business Plan$25 - nonrefundable application fee$300 - fully refundable security deposit$300 - annual subscription feeAdditional member - $1.5 per hour, $.40 per mile$20 fine for late returnAssumed annual renewal rate for members – 95%40% utilization of vehicles. Where as European Companies – 50% utilization of vehicles Assumed – avg. member would take 4 trips per month at an avg. of 4 hours and 22 miles per trip
• 7. Users were expected toHandle simple maintenance themselvesRefuel and submit receipt for reimbursementKeep the car cleanTake responsibility of any traffic or parking tickets incurredReturn to its original location before the reservation time expired
• 8. Planned LaunchBostonInsufficient and expensive off-street parkingLarge number of college-educated and web connected individual
• 9. CompetitorsCommunAuto – Canada - Quebec City – 1994 - Montreal - 1995Portland based Car sharing – 1998Seattle based Flexcar – 2000Potential Competitors Traditional car rental agencies – Hertz and AvisCar manufacturers
• 10. How does Zipcar work?Web orAutomated PhoneWireless in-cartechnology
• 11. Reserve a specific car in a few seconds on the web…..
• 12. Convenience and SecurityAccess to a Vehicle Only With An Active Reservation
• 13. Financing the ventureBuilding the technology platformContinuing the search for fundingNaming the business
• Starting zipcar
Marketing
Continuing the search for financing and building the management team
• Progress
Growth prospects and the continued search for funding
Exhibit 1 ( Economics of individual Car ownership)
Exhibit 2 ( Population of top 20 U.S markets)
• Car Sharing on Rise

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