by Laura A
Zipcars the Equivalent of Netflix
An article from Fortune Magazine entitled, Zipcar – The best new idea in business, brings a whole new meaning to driving a vehicle. Initially this idea was considered a counterculture movement, but since then has gone mainstream and is utilized in major U. S. cities such as San Francisco, New York, and Chicago. Zipcar’s annual revenues are $130 million, and the company is growing about 30% a year. The CEO of Zipcar, Scott Griffith, announces that Zipcar will show a profit for the first time in the third quarter of 2009.
What are the competitive advantages that Zipcar has to offer? Drivers that switch to Zipcar save an average of $600 a month. Another advantage is quoted here by Susan Shaheen from the University of California at Berkeley, “Car sharers report reducing their vehicle miles traveled by 44%”. 1 Lastly, surveys in Europe have concluded that CO2 emissions are being cut by up to 50% per user.
Zipcars have impacted the auto industry and it has become evident that car sharing brings a challenge to the concept of car ownership. With Zipcar possessing a high supplier power, Toyota and Ford have begun to work with Zipcar to design vehicles specifically for this new market. Zipcar will contribute to the future of transportation.
From the standpoint of owning a vehicle myself, this article grabbed my attention. It was of great interest to learn of the savings available to those who become a member of Zipcar as well as the ecological advantages of sharing cars. Who’s to say, but in these economic times I may be one of those car owners who becomes a Zipster.
Paul Keegan, Zipcar- The best new idea in business, 2009, http://money.cnn.com/2009/08/26/news/companies/zipcar_car_rentals.fortune/index.htm?postversion=2009082710 (Aug 2009).
Internet Article In An Internet-Only Newsletter:
Keegan, Paul (2009, Aug 27). Zipcar – The best new idea in business. Fortune Magazine. Retrieved August 29, 2009, from http://money.cnn.com/2009/08/26/news/companies/zipcar_car_rentals.fortune/index.htm?postversion=2009082710