2. Concept Car sharing business initiated in Switzerland in 1987. Organized car sharing was the coordinated use of vehicles by various subscribers in succession and Independently of one another. Member can reserve any car in the network
3. Concept Best Suited Urban Locations Large number of potential user Expensive Parking Need to drive limited distance College-educated individual were the most receptive to the proposition
4. Benefits Convenient Easy to use Freedom to travel Hassle free ownership Cost saving Environmentally friendly – one car eliminates the need of 7.5 individual owned cars
5. Course of Action Company Web Site Telephone Support Technology development - challenge- admit only confirmed driver, capture usage data Price Structure – security fees, initiation fees, annual fees, monthly fees, per mile fees, per mile fee and hourly rates
6. 1st Business Plan $25 - nonrefundable application fee $300 - fully refundable security deposit $300 - annual subscription fee Additional member - $1.5 per hour, $.40 per mile $20 fine for late return Assumed annual renewal rate for members – 95% 40% utilization of vehicles. Where as European Companies – 50% utilization of vehicles Assumed – avg. member would take 4 trips per month at an avg. of 4 hours and 22 miles per trip
7. Users were expected to Handle simple maintenance themselves Refuel and submit receipt for reimbursement Keep the car clean Take responsibility of any traffic or parking tickets incurred Return to its original location before the reservation time expired
8. Planned Launch Boston Insufficient and expensive off-street parking Large number of college-educated and web connected individual
9. Competitors CommunAuto – Canada - Quebec City – 1994 - Montreal - 1995 Portland based Car sharing – 1998 Seattle based Flexcar – 2000 Potential Competitors Traditional car rental agencies – Hertz and Avis Car manufacturers
10. How does Zipcar work? Web or Automated Phone Wireless in-car technology
16. Progress Growth prospects and the continued search for funding Exhibit 1 ( Economics of individual Car ownership) Exhibit 2 ( Population of top 20 U.S markets)
