According to the business model, the usage of each automobile by a member is to be determined through a highly complex computerized system. Zipcar owned the automobiles or the lease on automobiles. The business was based on the membership model according to which member was sold to prospective car users at a fixed mostly subscription. Prior to December 1999, the business model was designed in such a way that the automobiles owned by the company are to be distributed on parking spaces (which were leased) over the city. The parking sites are mostly located at busy city centers so that they are straightforwardly accessible by the subscribers. The reason for such a design of the business model was that Chase had estimated running costs of rental of cars to the clients at a much lower figure. Prior to December 1999, the business model was focused on gaining revenue from subscription charges from the client. The business model has evolved between December 1999 and May 2000. What is the business model, and how has it changed between December 1999 and May 2000? The above-mentioned information shows that car rental companies are quite flexible in their approach and are likely to enter. The very short term rental from less than an hour to several hours Short-term rental, from one day to several days The car rental market is also very flexible in its pricing strategy: They also provide systems of rental luxury cars with drivers. These are reserved for events, transfers of employees or making arrangements. Car rental is a service offered by professional holders of automobile passengers or commercial vehicles. This service is for the customer (business or individual) to book and enjoy a vehicle for a period ranging from hours to several months. ![]() ![]() The reason for the potency of this threat to Zipcar's business from car rental companies is that the car rental industry is characterized by strong companies like Avis and Hertz. Taxis are only a secondary competition for Zipcar, while car rental companies are a major competitor and a threat. The companies which Zipcar competes with are car rental companies or taxis. Zipcar does not have any direct competitors. How would you characterize the service Zipcar provides? With which companies or services does it compete? What role does it play in its competitive landscape? What is the strongest argument Chase could make to a potential investor about the attractiveness of the venture? What, specifically, should her elevator pitch be at the Springboard forum?Ĭase Analysis for Zipcar: Refining the Business ModelĢ. What suggestion would you have for Zipcar to manage consumer behavior (or is that even necessary)?įinally, if Chase has one minute with a VC in an elevator, what should she try to convey? What operations related recommendation would you make?ī. If you have one minute with Chase in an elevator,Ī. What are the biggest risk and opportunities for Zipcar’s sustained growth and profitability in the future? What mechanisms does Zipcar have in place to manage behavior? What, specifically, are these mechanisms intended to accomplish? What actions should Chase take as a result of the September operating results? Does this data give you comfort or concern? What do the data from actual operations in September say about how the business model is playing out in practice?ī. ![]() What is the business model, and how has it changed between December 1999 and May 2000?Ī. Evaluate this potential venture and the progress that Chase has made.
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