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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Excerpts Contd...
The Competition
Competition for Zipcar came from traditional car rental companies like Enterprise Rent-A-Car (Enterprise) and Hertz Corp. (Hertz) (See Exhibit IV for more information on the US car rental market)...
Rising Gas Prices
In 2008, Zipcar continued to make losses, even as its revenues increased to US$ 100 million from US$ 60 million in 2007. The company was adversely affected by the sharp rise in gas prices that began in 2007. Zipcar's customer friendly all-in-one price scheme meant that the company had to bear the entire burden of the increased cost...
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Outlook
Though the company did not disclose its marketing budget, it launched several new marketing campaigns in 2008. Speaking about the company's marketing, Victoria Godfrey (Godfrey), CMO of Zipcar said,
"We are very much a local brand marketer; in terms of what we do, we are really building relationships with local business, events, viral marketing...
Exhibits
Exhibit I: Zipcar Logo
Exhibit II: Summary of Zipcar's Driving Plans
Exhibit III: Differences between Car Ownership and Car Sharing Services
Exhibit IV: US Car Rental Market in 2008
Exhibit V: Differences between Car Rental and Car Sharing Services
Exhibit VI: US Car Sales Trends, 2001-2007
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