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

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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 fee’s. The company parks cars in convienient 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. 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. When it comes to Zipcars revenue sources I personally think there is too many. Consumers do not like fee’s, especially fee’s that are not simple to calculate. I think Zipcar should simplify their revenue model so that certain fee’s are eliminated. Cost Drivers:
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