Zipcar Case

Compare and contrast the car-sharing rental market, and the broader auto rental market; how is ZipCar’s business model different?

http://www.triplepundit.com/2013/02/different-design-car-sharing-car-rental/

Zip Care has differ clientle segment such as younger people. The pick of demand is on week ends while in the traditional rental car is during the week. Zip relies totally and only on online rental and it has a state of the art technology with allo the utilization of Smart phone.

Why did ZipCar have difficulties in growing its business profitably?

Becaue the demand for ZipCars are mostly on the week end and so the supply is not sufficient to satisfy the demand and this mean sin loss of revenue and frustration for customers (Avis has the opposite problem so it is a win win situation).

-Zip Car could not find a cost effective way to convince ever more memebers (Itkept adding customers, but the rate of growth decliened potentially there is a 10 million dollar market)

Cars cost too much, probably avis can buy those for less

Why is Avis buying ZipCar,

Combined companies will be the global leader of car sharing and mobile solution.

ZipCar has a state of the art technology

Avis wants to buy ZipCar to:

-Increase growth potential in the U.S. but also Internationally.

-The company will increase the variety of consumer and commercial transportation needs served re-positioning the company

-Car Sharing complements Traditional Car Rental Business

-Rapid growth potentials

-Scalable opportunity as a combined