Case Study

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Zipcar Case The proposed venture in this case study has great potential in highly populated areas with a need for transportation. Since Zipcar provides the cars in areas close to the customer, this service would be easy to use. The drawback would be finding a way to make the benefit of utilizing Zipcar more compelling over other forms of transportation such as owning a car, using other car rental services, taxis, subways, or buses. The nice component of Zipcar is that it offers hourly services which can attract people who need a car only for a doctor’s appointment or grocery run. Zipcar has been able to progress its venture which is notable since funding and parking have been an issue. Most of the funding was used to start building the…show more content…
Lastly, she should state any additional progress, sales, customer retention, and angel investors before her plea for financial assistance from investors. 1. How would you characterize the service that Zipcar provides? Why does Zipcar exist? What consumer needs was it designed to meet? Which firms are its competitors? Zipcar is in a nut shell a US headquartered car membership based car sharing program that provides automobile reservation and use to its members. This concept started in Boston by two entrepreneurs named Robin Chase and Antje Danielson in the end of 1999. This year 2013, a deal was struck where Avis Budget Group acquired Zipcar for $500 million in cash, becoming a subsidiary of the group. The company provides a great service to its members by being able to let them reserve a car a year or even minutes in advance charging an hourly rate or for the day. There is not hassle with a Zipcar automobile, the hourly fee usually as low as $4.50 (depending on the city) covers all expenses from fuel, insurance and maintenance. This way of car sharing through memberships is very unique and it really goes into how through the use of modern technology (self-service) one can create a revolutionizing business or concept. Zipcar’s service solves an overwhelming need for young adults living in the city (generation Y). Zipcar targets those individuals who live in dense metropolitan areas. College students also benefit

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