Zipcar: Influencing

Customer Behavior
 Anju

Neha Afzal

Reuel Daniel
GROUP 3 Sameer Lakhe

Seng Ong Maio

Sushant Prabhakar

Vishnu Jith
ABOUT ZIPCAR
● Zipcar is a car sharing service which started in the US in
1999.
● 2005 ; 30000 members, 21 cities, more than 400 cars.
● Low cost alternative to car rentals and ownership
● Wide range of vehicle fleet from normal cars to luxury cars
and SUVs.
How does Zipcar work?
 Comparing Zipcar with rental cars & owned cars
on a monthly basis
ZIPCAR RENTAL OWNED CAR

● Daily rate $60 ● Daily rate $43 ● Daily rate

● Gas charges ● Gas charges $10 ● Gas charges $81
● Insurance ● Insurance $21.95 ● Insurance $134
● 21-25 age surcharge ● 21-25 age surcharge $30.50 ● 21-25 age surcharge
● Parking ● Parking $8 ● Parking $175
● Maintenance ● Maintenance ● Maintenance $76
● Car payment ● Car payment ● Car payment $315
● Financial charges ● Financial charges ● Financial charges $62
● Additional fee ● Additional fee $4 ● Additional fee

TOTAL = $60 TOTAL = $86.95 TOTAL = $843

SWOT Analysis
STRENGTHS WEAKNESSES

● Market leader ● Initial investment

● No competition ● Pricing of plans
● Variety of cars ● Non-uniform pricing
● Partnerships
● Green association
● Low cost
SWOT Analysis
OPPORTUNITIES THREATS

● Untapped market ● New entrants

● Capacity increase ● Flexcar
● Public transportation
Case Background
Problems faced by customers
using Zipcar

1. Constant fear of the deadline and penalty which forces the customers to focus
on the deadline instead of enjoying the service ~ Sal Fishman

1. Prompt, on-time service for customer satisfaction ~Anita Karr

Analysis

Customer Introduced Variability Zipcar

Arrival Through registration and reservation

Request Host of monthly and yearly plan and a fleet

of cars to choose from

Capability Verification of driving license

Effort

Subjective Preference
Analysis
Analysis
Alternatives and Recommendation
Bottleneck in the case - Effort Variability

Accommodate or Reduce it?

Accommodation will require buffers

Reduction can be done through Normative means rather than instrumental means
Alternatives and Recommendation
● Problem faced - Effort Variability
● Zipcar following mostly classic reduction
● Events to improve community strength
● Introduction of Rating based system to rate customers
● Buffer cars for unexpected delays
● Contact details exchanged between successive customers for better
communication
THANK YOU !!