New Product Strategy Test Making Idea Generation Development Idea Screening Business Analysis Commercialization History Robin Chase founded Zipcar in 1999 Used model that was created in Europe Opened offices in 2000 ◦ First office was in Boston, Massachusetts Merged with Flexcar in 2007 2009: has 300,000 customers 1 •Apply online 2 •Reserve a car 3 •Unlock car 4 •Drive Zipcar does not make the customer pay for insurance ◦ It is included in your membership. If the customer gets into an accident and its his/her fault, Zipcar will charge a damage fee up to $500 dollars. If there are injuries or damage made, the customer is covered by a Loss and Liability Policy. Application Fee: $25 Annual Fee: $50 Add Driver to Account ◦ Application Fee: $25 ◦ Annual Fee: $60 Cost to Drive: $8 per hr. or $60 per day ◦ Covers: fuel, insurance and 180 miles Other Fees ◦ Toll: paid by driver ◦ NJ: $5 Domestic Security Fee ◦ Penalties Returning car late: $50 Cancelled/ Shortened reservation: $3.50 Car Rental Company: Large rental company Car: Kia Rio Daily Rate: $43 Fuel: $10 Insurance: $21.95 21-25 Age Surcharge: $30 Parking: $8 Total: $86.95 Zipcar Company: Zipcar Car: VW Jetta Daily Rate: $69 or by hr. $7 Fuel: Included Insurance: Included 21-25 Age Surcharge: None Parking: None Total: $69 Car Ownership Car: Chevy Impala or Ford Fusion Car Payment: $238 Finance Charges: $62 Insurance: $80 Fuel: $78 License/Registration/ Taxes: $45 Maintenance/Tires: $46 Parking: $175 Total: $769 per month Zipcar Zipcar: Whatever your little heart desires If you drive a lot: $272/month (Several trips each week and a weekend trek) If you drive a fair amount: $126/month (A couple trips each week) If you don’t drive much: $28/month (About one trip a week) Zipcar in the REDS Expect to see profits in 2009 Zipcar Cities ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Atlanta Boston Chicago London New York/ New Jersey Philadelphia Toronto, Canada San Francisco Washington DC Zipcar Universities ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ ◦ Dickinson College California State Chico UC Davis University of New Hamp. Elmhurst College SUNY Geneseo Hofstra University California State Long B. University of Alabama Wesleyan University Caltech Consumers Businesses Universities Government Get university Less money spent by university and student Less parking lots built Less crowded parking Convenient Website www.zipcar.com Email [email protected] High percentage of loyalty Personalized emails High percentage of returning customers Help the country go GREEN ◦ Cutting down drastically on the amount of cars in the road reduces gas and oil consumption. Rent a car from HYBRID to CONVERTIBLE ◦ Can select amenities like sunroof, ipod adaptors, etc. ◦ Pick any type of car that fits your lifestyle.