Zipcar steven - 173C Mon 1:30 10/07/09 Zipcar Assignment...

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173C Mon 1:30 10/07/09 Zipcar Assignment Zipcar is a car sharing company that lends automobiles out to members of the company while charging members fees. Currently, the company parks cars in convenient locations around Boston and allows members to reserve cars whenever they need one. The company is looking to capture the niche in the automobile market of drivers who do not drive very often but still need a car. The Zipcar business idea is borrowed from car sharing businesses that are based in Europe. Zipcar is currently looking to target the America’s east coast market. Although similar companies are operating in northwestern part of the United States, there is currently no other busineses offering car sharing options on the east coast where zipcar is hoping to expand. Revenue Sources: Zipcar has multiple streams of revenue including a security deposit, an initiation fee, an annual fee, a monthly fee, a per mile fee and hourly and daily rates. These revenue streams fall mainly into two revenue models: subscription /membership and volume or unit-based. Its main source of revenue is split between its annual and monthly fee’s and its per mile and length of use of its cars. As of now, Zipcars revenue streams seem to be solid. As they acquire more members their revenue will continue to increase. Using upfront membership fees allows
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This note was uploaded on 09/08/2010 for the course BUS 173C at San Jose State University .

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Zipcar steven - 173C Mon 1:30 10/07/09 Zipcar Assignment...

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