Zipcar Analysis - Implementation of Gps Notification System

Recommendation

1. Implementation of GPS notification system

As the problems we addressed above, a GPS notification system is recommended. The system will enable the personnel in the operation department of Zipcar can communicate to customers through GPS system. For example, Zipcar can monitor the the location of its cars and check whether the car can be returned as planned. One hour before the return time, a customer will receive a GPS message reminding him to return on time. In case the customer cannot return the car within scheduled time, Zipcar can arrange a back-up plan accordingly. This is to make sure everything is under control.

2. Uncertain schedule charge

Zipcar introduces a plan which can allow customers to return late by paying additional $30 on the top of their usage fees. Customers who are difficult to estimate accurate return time can buy the plan to waive the late turn penalty. They will see a check box on the website when making reservation and check when they want to buy the plan. This $30 is more expensive than reserving for extra hour, therefore, the implementation of uncertain schedule charge will encourage customer to stick on their schedule. On the other hand, Zipcar can consider the purchase of plan as a signal of late return and can arrange another car promptly for the next customer.

3. Gold Card Membership

Zipcar issues a Gold Card membership to their customers who have been returning cars within schedule for every reservation in this year. This alternative gives incentives as well as recognition to customers who have been participating cooperatively in terms of returning cars on time instead of imposing penalty on its customer. Gold card members will get 10% discount for further usage fees for the next year. The record of each customer will be evaluated on annually base and those members who have shown a good record will be