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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Zipcar (www.zipcar.com) is a car-sharing club founded in Cambridge, MA, in 1999. The club mem- bers pay an annual fee and then have the opportunity to rent a small car (usually a subcompact; the models include the Toyota Prius) for a fixed hourly rate. Zipcar is located largely in select metro- politan areas such as Boston, San Francisco, and Washington D.C. Members, called “Zipsters” make
reservations for a car on the Zipcar Web site, and then use an access card to open the vehicle. The vehicle has a “home base” parking spot where the driver picks up and returns the vehicle. The club grew by 80 percent in 2007 and has great plans for the future, subject to potential competition from the existing car rental companies such as Hertz and Enterprise.
1. What are the fixed and variable costs for Zipcar?
2. What are some of the competitive advantages and challenges of the Zipcar concept?
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