Zipcar: Revolutionizing Car Rentals?
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Case Details:
Case Code : BSTR360
Case Length : 16 Pages
Period : 2000-2009
Pub Date : 2010
Teaching Note :Not Available Organization : Zipcar Inc.
Industry : Car rentals / Car sharing
Countries : US
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Introduction Contd...
Zipcar was started in 2000 in Boston, Massachusetts, by two enterprising women. After joining the Zipcar service by paying a one-time membership fees and an annual fee, customers could rent cars by the hour, under different driving plans. Cost of gas and insurance, and parking fees, were included in the car rental charges. Customers made their reservations online, and Zipcar used wireless technology to manage its fleet.
By 2003, Zipcar had about 6.000 members, and the service was available in Washington D.C and New York, in addition to Boston. However, mounting losses led to a change of management, with Scott Griffith (Griffith) becoming the CEO of the company.
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He brought in changes to the operating, marketing and business practices at Zipcar, and targeted the student and business community, modifying the service to better suit their needs. These changes led to a substantial increase in membership, and the company expanded into other cities. In 2007, after a merger with Flexcar4, a rival car sharing company and its largest competitor, Zipcar received a boost in membership, and was able to enter five more cities...
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