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PRESENTERS: GAN JIAN LONG NG HENG CHUNG, JARYL YONG ZHI YUAN, BERNARD FOO CE YAO
MT4002 TECHNOLOGY MANAGEMENT STRATEGY
*DIsclaimer: ZipCars is a registered trademark, all contents used are only for presentation purposes
INTRODUCTION TO ZIPCARS
ZipCar Services
What ZipCar provides
Coverage
Car are Widely located
Comprehensive payment plan:
Petrol, Insurance, parking and usage all
included
Convenience: Pick up the vehicle
as per desired location
Flexibility: Pay per use, reserve
as last as 30 mins before usage
One Time Registration
• Pay Per use • Pre-Pay Membership
Locate a Car Near You
• Smart Phone App • Internet • Phone Services
Car Information & Location is sent to
User Upon Confirmation
Unlock Car with ZipCard and Drive
Off!
Return ZipCar @ any time after using • Nearest ZipCarpark • Any other Carparks & inform us
How to use ZipCar
What’s new!
Customer
Car Rental Company
Car Computer system
GPS system
Car
ZipCar Charges
Sedan Car MPV (7 Seater) Free Distance inclusive (Km)
Every ½ Hour(minimum usage)
S$9 S$12 10
12 Hour S$150 S$200 150
Excessive charges (Per min)
S$0.40 S$0.40 -----
Excessive charges (Per km)
S$0.40 S$0.40 -----
Parking at ZipPark Free Free -----
Parking at Non-ZipPark*
S$5 S$5 -----
VALUE PROPOSITION
Value Proposition
Ease & Convenience
Comparable & Competitive Cost
Ease & Convenience
ZipCar’s Efficient Technology
Platform
24/7 Services
-Easy membership sign up
-online and wireless reservations
Easy to Use
-Locate nearest ZipCar with mobile app from anywhere
-Keyless vehicle access
Extra Convenience
-Free parking
-No fuel charges
Convenience: Where do people usually looking for Taxi?
• Shopping Malls
• Neighborhood HDB Areas
• Entertainment Areas
Vehicle placement
concentration
Airports & entertainment
areas
HDB and Housing Estates
Shopping malls/ Furniture malls. Or events areas
like expo
Strategic Location of ZipCars
ZipCar Placement Locations
Major Transportation Points CBD Regional Hubs Places of Interest Young Estates Matured Estates
Jurong Regional Hub
One North Regional Hub
Changi Business Hub
Woodlands Regional Hub
Paya Lebar Regional Hub
Changi Airport
Tanah Merah Ferry Terminal
Marina Cruise Center
Orchard & Downtown Area
Comparable & Competitive Cost High Cost of & maintaining a Car
Sky rocketed prices of Singapore cars
Taxi prices and availability are always inconsistent (GPS in car gets you to your destination at your shortest way possible)
Overcrowded public transports
High fixed prices per day car rental companies
Value Proposition
“…flagdown rates
starting $3.80 …
higher than the $3.50
and $3.70….”
“…SMRT also brought
up flagdown charge
from $3.60 to
$3.80….”
Taxi Flagdown Rates Going Up Dated: 22 Oct 2013
Mid Distance: Ang Mo Kio HUB ION Orchard
(10.5KM in about 15Minutes)
ZipCar Taxi
• Half hour cost : $9 • Extra KM cost : $$0.40 • Total cost : $9.40
• Booking cost : $2.30 • Flag down cost : $3.40 • Metered Fare : $6.60 (gothere.sg) • Total cost : $12.30
Cost Comparison
Long Distance: Woodlands CityHall
(26.3KM in about 25Minutes)
ZipCar Taxi
• Half hour cost : $9 • Extra KM cost : $6.80 • Total cost : $15.80
• Booking cost : $2.30 • Flag down cost : $3.40 • Metered Fare : $18.9 (gothere.sg) • Total cost : $24.60
Cost Comparison
Comparable & Competitive Cost High Cost of & maintaining a Car
Sky rocketed prices of Singapore cars
Taxi prices and availability are always inconsistent (GPS in car gets you to your destination at your shortest way possible)
Overcrowded public transports
High fixed prices per day car rental companies
Value Proposition
Cost Comparison
ZipCar
Hours rented on Sat: 12 hours
Hours rented on Sun: 12 hours
Total no of hours: 24 hours
No need for Parking Fee
Total cost on ZipCar = 2*$150 = $300
Other Rental Co.
2 day car rental at Hertz $100/day
Insurance $30/day
Petrol ~$40/day*
Day Parking ~$20/day#
Parking Overnight at home $4/night
Total Cost $388
ZipCar is much more
worth it!
* Based on 150 km comparison matching ZipCar’s 12 hour lease # Based on 2 Parkings within the Orchard Shopping Belt
WHY ZIPCAR?
Hourly Rental
ZipCar
24 hours Availability
Flexible Rental Timing
Flexible Pick up/ Return Locations
Petrol Included
Basic Insurance covered
Free Parking*
Other Car Rental Co.
Retail Hours
Fixed Daily Rental
Fixed Pick up/Return Location
Petrol (Self Paid)
Insurance Additional Cost
Parking at Own Cost
Point-to-Point
ZipCar
Maximum Availability
No Booking Fees
No Peak Hour Surcharge
Confirmation upon booking
Cheaper for mid to long distance
Full Privacy
Taxi
Subjective Availability
Booking Fees
Subjected to Peak Hour Surcharge
Subjected to wait for booking
Expensive for mid to long distance
Less Privacy
Amy
• Weekend Driver
• Loves to Explore New Places
• She drives the car maximum for about 12 hours a day
• Lives in a HDB estate where parking chargeable
CUSTOMER SELECTION
ZipCar’s Potential Customers
Cost Oriented Customers
Eg.Public Transport
users
Convenience Oriented
Customers
Eg. Car owners, Taxi Passengers, Car Rental
Customers
ZipCar’s Customers
Point-to-Point Users
Mobile Professionals Shoppers Tertiary Students
Daily Users Who Travels At Fixed Timing
Working Professionals
Word-of-Mouth Marketing
• Customer Referral Benefits
– Customers gain $10 Zip-credit for every newly referred sign-up
VALUE CAPTURE
METHOD OF VALUE
CAPTURE
SUBCRIBTION
FEE FOR SERVICE
ADVERTISMENT
Value Capture
Value Capture
Primary Revenue Model
Occasional Drivers
Preferred Customer
Priority Customer
•Rates at $9/half hour •$20 Annual Fee (1st year free)
•Prepaid: 100 hours +$90 free credit •No annual fee
•Prepaid: 1000 hours +$1800 free credit •No annual fee
One time $35 membership fees (includes Zipcard and $35 credit)
Tiered Advantages
Occasional Drivers
• Normal rates
• Least priority in booking
Preferred Customers
• Loyalty discounts
• Higher preferential over priority booking than Normal Customers
Priority Customers
• Most loyalty discounts
• Top priority in bookings
Value Capture
• Advertising – ZipCar allows external advertisements on 50% of
its vehicles. Charges: $650/car/month.
Revenue Stream
SCOPE OF ACTIVITIES
Scope of Activities – Operations Management
ZipCar’s Fleet •1000 Owned & •4000 Long Term Rented
ZipCar Technology Team •Maintain ZipCar Systems & GPS •ZipCar Website and Mobile App •Fleet Management System
Car Servicing •Partnered Car Servicing Centers •Maintenance Crew
Frontline Crew •Customer Service Staff •Call Service Center •Car Relocating Team
Scope of Activities – Business Collaborations
Malls & Merchants Tie-Up •Entice ZipCar Users to Merchants & Malls •Parking Lot Tie-up •Merchant Discounts etc.
Car Park Lots Management •Strategizing Car Park Location Areas •Obtain Season Car Park Lots •Rent / Purchase Car Park Lots
Insurance •Collaborate with insurance firm for cheaper basic insurance •Allow customers to purchase additional insurance while booking
Petrol Discounts •Liaise with Petrol Companies for cheaper fuel
STRATEGIC CONTROL
Barriers to entry
Business Sustainability
Took up huge amount of
vehicles
•We would rent up to 60%-70% leasable vehicles in the market
Strategic control
High start-up cost
•Fleet Size: Amount of cars could not be own over short period of time.
•Car-parks: Number of Car-parks
located around the Island
Cost effective savings •Petrol Insurance: Ability to get lower cost packages
•Maintenance: One workshop to handle the car maintenance reduces the cost compared to outsource
Thank you!
Q&A