Zipcar is a self-service car company that was founded in 1999. It has operations in the New York City metro area, Boston and Washington, D.C. The company boasts more than 10,000 members and 250 cars. The company represents a great opportunity and fills a real need between rental car service and taxi service. .
Zipcar's target market is focused on dense urban residential areas, where millions of people that do not own a car, as they are put off by congested, accident-prone infrastructure, sky-high parking fees, vandalism, high maintenance costs, and other nuisances. On top of that, the average urban car sits parked 20 to 23 hours a day; many are idle from weekend to weekend. .
Zipcar is a new commercial car-sharing venture that provides convenient on demand means of transportation.
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Case Analysis.
Founded in late 1999, Zipcar's vision and business model have little changed. .
"Our Vision.
Providing reliable and convenient access to on-demand transportation, complementing other means of mobility."" .
(Source: Zipcar.com).
Zipcar manages a fleet of cars, at the disposal of its members any time for as brief as one hour. The basis for its business model is a car-sharing model where Zipcar members pay for car use by the hour and by the mile. Fees include everything: gas, maintenance, insurance, and parking. Hourly rates are location and car-specific. As opposed to car rental agencies, Cars have dedicated parking spaces and can usually be found a short walk from where members live.
Its competitive advantages over other rental services are:.
Hassle free rental - Zipcar's technology knows when a member lock and unlock the doors and how many miles they have traveled - therefore, no paperwork required.
Reservation for a specific car and/or car location are easily made in the Internet or phone for as little as one our.
Cars are can be usually found near where its members live, work, etc. .
Furthermore, Zipcar offers the convenience and the experience of driving your own car.