Italia & ZipCar 1 1
Jan 19, 2015
Italia & ZipCar
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1
Why Italy?
Framework 2
• Increased Taxes • Increased Oil prices
Expensive Car Ownership
• Bike Sharing Success • Government plan: 16,000
customers, 500 cars
Sharing Culture
• Public Transportation • Need for cars occasionally
Convenience for Customers
Is there a Market for Zipcar? Market Analysis
Italia & Zipcar
3
Competition
Carpooling
Rental
Fragmented
Government plan not as convenient
Threats of new entrants is
relatively low
Potential Clients
Rarely need car/second car
Use Bike/Public Transportation
Short Trips
Environmentally Conscious
Students studying away
from home
Appeal of Product
Cheaper
Exceptions to environment
regulation
Convenient
Choices
Growth & Size
12% growth in cars, 15% in
users
17% people with license don’t have
cars
44% don’t have parking
space
2.8% of population
are potential clients
Market Revenue:
potential ~$155M
Which strategy?
Strategies to Enter 4
Joint Venture
• Most attractive partner: Mobility
• Too much risk, not enough reward
• Different business model
Merger & Acquisition
• Nobody to merge with
• Can’t buy government owned car sharing
Fully Owned Greenfield
• Capture market share • First movers
advantage • Consistent with
Strategy • High Costs: careful
planning of financing decision
What problems could we face?
Feasibility
Italia & Zipcar
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• Online Infrastructure
• Smartphones Technology
• Strict regulations on emissions that increase costs
Regulation
• 70% doesn’t know what car sharing is Other
Problems
High speed internet widely available,
28% of Italians have a Smartphone
Government willing to fund up to 15%
Marketing campaign
What do we need to do? Recommendation
Italia & Zipcar
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Financing
Focus on high
population density areas
Partnership with Auto
makers
Partnerships with
Universities
Q&A and appendix
Grazie per l’Attenzione
7
Car Sharing costumers in Italy
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Turin
Rome Parma
Palermo
Competition: car sharing services in Italy
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City Fists year of operation
Type of company
Milan 2006 Public
Bologna 2005 Public
Venezia 2002 Public
Torino 2003 Public and private
Modena 2005 Public
Genova 2004 Public and private
Roma 2006 Public
Parma 2007 Public
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Competition: car sharing services in Europe
State Start Users Population users%
What will the price of the service be?
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Company Annual Fee (€)
Hourly Rate (average in €)
Km rate (average in €)
Mobility (CH) 174 1.0 0.20
Communauto (Turin) 25 1.3 0.15
Car City Club 179 1.25 0.3
Zipcar Barcelona 45 6 20 free km
Zipcar London 75 5 50 free km
Bibliography � “Car sharing: an international Analysis”; Italian
Ministry of transportation � “Car sharing: Business and Market”; Burlando,
Arduino, Nobile � “Car Sharing”; Opera research group � “Sustainability: Zipcar IPO”; greenbiz.it � “A conversation with Zipcar CEO”; Kilcrease � “Zipcar buys Avencar”; abc.es � Zipcar.com
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