Zipcar Case Study

Car Sharing Service

Started in 1999

Expanded to 21 cities till 2004

30000 Registered Members

400 cars till 2004

Tie Ups with Universities

ZIPCAR: IN A ZIP

Step 1. Join

Step 2. Reserve

Step 3: Unlock

Step 4. Drive!

HOW TO USE ZIPCAR’S SERVICES

Initial Fee: $25 for Checking Driver’s License + $100 Refundable Deposit

Annual Membership Fee: $50-$250

Free 125 Miles/Reservations, $0.20/Mile Beyond That

Incentive for Members Washing The Cars

SERVICE CHARGES

COMPARISON WITH CAR RENTAL

Car Rental

Daily Rate: $43.00 (No hourly options)Gas Charges: $10.00Insurance Waiver: $21.9521-25 Age Surcharge: $30.50Parking: $8.00Additional Fees: $4.00Total: $86.95

Zipcar

Daily Rate: $60.00 (Or by the hour for $8.50)Gas: $0Insurance: $021-25 Age Surcharge: $0Parking: $0Total= $60.00

You Save $26/Day

COMPARISON TO CAR OWNERSHIP

Owned Car

Car Payment: $315Finance Charges: $62Insurance: $134Gas: $61Maintenance: $76Parking: $175Total: $843/Month

ZipcarIf You Drive A Lot: $290/MonthIf You Drive A Fair Amount: $153/MonthIf You Don’t Drive Much: $34/Month

You Save Hundreds Each Month, You Pay Only What You Use

RELATIONSHIP MARKETING

Building Financial Bonds

Building Social Bonds

Building Structural Bonds

INTRODUCTION TO THE CASE

Anita Karr resident of Cambridge (U.S.A)

Anita Karr resident of Cambridge(U.S.A)

Reserved a VW Jetta Jericho from Zip car at

4:00 pm

Needs to go to Boston by 6:00pm

To attend her sisters performance

INTRODUCTION TO THE CASE

Sal Fishman attending an interview in Boston

Reserved the car from zip car for the interview

Expected to return the car by 3:30 pm which Anita Karr was

scheduled to pick up by 4:00 pm

But his interview got delayed beyond 3:30 pm

THE PROBLEM

Fishman found himself in a difficult position position regarding the car.

Fishman excused himself from his interviewers to call Zip car but before Zip car could pick up the line Fishman hung up .

Karr was anxious when she saw no car parked at the parking space at the Charles Hotel.

WHAT SHOULD FISHMAN DO?Should he stay or Should he go?

INFLUENCING CUSTOMER BEHAVIOUR

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Anita KarrSal FishmanVolkswagen JettaZipcar

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ANITA KARR

Emotional Caring Values Relationships

Believes in Planning

Organized Person

Platinum Customer

Sal Fishman

Loves adventure

Energetic

Responsible

Punctual

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GOLD Customer

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The Middle Segment Sedan from Volkswagen

Positioned as a car everyonr desries

The other cars from Volkswagen are

Vento-Lower segment

Passat-Higher Segment

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Positioning of Zipcar

Its Not a Rental Service but Ownership

Covers Gas, Insurance, Parking fees

A Brand to Rely On

Can own Any Segment Car Anytime..!!

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Solutions to the case

Auto call Back Systems ½ hours before

Numbers exchange system

Static & Dynamic Pricing

IVR System for Problems

Minimum 2 cars

Mobile app to track cars

Zipcar = Unpleasant

Absolutely Horrifying Experience

You Will Be Dissatisfied

Don’t Waste Your Time Or

Money

Do Not Rent From

Zipcar

Beyond Terrible Customer Service

Transactional Surveys

Employee Surveys

Customer Complaint Capture

Customer Advisory Panels

Enhancing Elements

Door To Door Service

Chauffer Driven ZipCar

Trips for Special Members

Vacation Trips Outside United States

Airport & Railway Service

Superiority Elements

Customization Of Cars

Pet Space

Zipcar Driver Training Center

Women Safety System

Multiple Members Zipcard Access

“It's a relief not to have a car anymore.But it's also a relief to know if we need

one, it's there.''

Functional

RisksPhysical Risks

Financial RisksTemporal Risks

Psychological Risks

Social Risks

The management

team

Nitesh

Praveen

Piyush