Zipcar creating value in the marketplace

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ZIPCAR: CREATING VALUE IN THE MARKETPLACE

Activity Type: Case Analysis

Activity

Introduction: Nearly a decade ago, the founders of Zipcar decided to bring the car-sharing experience to the United States. Since then, Zipcar has developed the gold standard by offering its members 24/7 access to thousands of cars around the world and creating a revolution in the way many think about alternate transportation.

Case

Zipcar is a membership-based car sharing service offering automobile rental to its members in hour or day increments. Zipcar was founded in 2000 by Robin Chase and Antje Danielson, who were inspired by the success of car sharing in Europe; Avis Budget Group acquired the company in 2013. Zipcar has become the world’s largest car-sharing service in over 50 North American cities, 20+ European cities, and over 100 college campuses in North America.

Zipcar offers different types of membership, with plans aimed at both occasional and frequent drivers. In addition, special plans for corporations and universities are offered. Aside from monthly or annual membership fees, customers pay rental charges to use a Zipcar. Members can view vehicle accessibility and reserve a vehicle on Zipcar’s website, using its mobile app, or on the telephone.

“Zipsters” (as Zipcar members are called) are given a “Zipcard” that contains a wireless chip that opens their reserved vehicle; keys are stored inside the vehicle, along with a gas card members can use to fill the tank. When the Zipster is done with the car, s/he returns it to the car’s home location (a reserved spot for the automobile in the member’s area).

Zipcar’s fleet consists of automobiles from Audi, BMW, Ford, Honda, Nissan, and Toyota. Ford and Toyota have partnered with Zipcar to test their new electric and hybrid options with Zipcar members.