Car sharing service Zipcar was started in 1999 and expanded to 21 cities by 2004, gaining 30,000 registered members and a fleet of 400 cars. It partners with universities and offers an affordable alternative to car ownership through low membership fees and hourly/daily rental rates. While Zipcar is more convenient than traditional car rentals due to inclusive pricing and flexibility, it also provides significant cost savings compared to owning a vehicle through eliminating expenses like car payments, insurance, gas, and parking fees. The case examines a situation where a Zipcar member encounters a problem with his reserved vehicle.

2. 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

3. Step 1. Join
Step 2. Reserve
Step 3: Unlock
Step 4. Drive!

4. 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

5. COMPARISON WITH CAR RENTAL
Car Rental
Daily Rate: $43.00 (No hourly
options)
Gas Charges: $10.00
Insurance Waiver: $21.95
21-25 Age Surcharge: $30.50
Parking: $8.00
Additional Fees: $4.00
Total: $86.95
Zipcar
Daily Rate: $60.00 (Or by the hour
for $8.50)
Gas: $0
Insurance: $0
21-25 Age Surcharge: $0
Parking: $0
Total= $60.00

6. COMPARISON TO CAR OWNERSHIP
Owned Car
Car Payment: $315
Finance Charges: $62
Insurance: $134
Gas: $61
Maintenance: $76
Parking: $175
Total: $843/Month
Zipcar
If You Drive A Lot: $290/Month
If You Drive A Fair Amount:
$153/Month
If You Don’t Drive Much: $34/Month

7. RELATIONSHIP MARKETING
Building Financial Bonds
Building Social Bonds
Building Structural Bonds

8. INTRODUCTION TO THE CASE
Anita Karr resident of
Cambridge (U.S.A)

9. INTRODUCTION TO THE CASE

10. 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?

11. INFLUENCING CUSTOMER BEHAVIOUR

12. 12

13. 1313

14. 14

15. Sal Fishman
Loves adventure
Energetic
Responsible
Punctual
15
GOLD Customer

16. 16

17. 17

18. 18
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..!!

19. 19
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

21. 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

23. Transactional
Surveys
Employee
Surveys
Customer
Complaint
Capture
Customer
Advisory
Panels

24. Enhancing
Elements

25. Door To Door Service

26. Chauffer Driven ZipCar

27. Trips for Special Members

28. Vacation Trips Outside United States

29. Airport & Railway Service

30. Superiority
Elements

31. Customization
Of Cars

32. Pet Space

33. Zipcar Driver Training Center

34. Women Safety System

35. Multiple Members Zipcard Access

36. “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.''

37. Function
al Risks
Physical Risks
Financial
Risks
Temporal Risks
Psycholo
gical
Risks
Social Risks

54. The management
team
Nitesh
Praveen
Piyush