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Zipcar: Refining the Business Model

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Zipcar: Refining the Business Model
Zipcar Case

Case Analysis Template

Reading: Zipcar: Refining The Business Model
Who: Robin Chase, CEO and Co-Founder of Zipcar
Immediate Issue/Problem Being Faced:
Zipcar needs additional funding if it hopes to survive and expand. In order to gain additional funding they would have to bring in there best arguements to why they should be funded by outside investors. On pages 1 and 11 it states that Chase needs to work on a pitch that will get investors to invest. In other words, she needs to look at revising the current business model so investors will want to buy in.

Basic Issues:
Lack Of Experience with start ups and cars has led many investors to dismiss them.
Overhead is growing faster then she anticipated, parking and fuel fees are more expensive than expected, which increase the need for additional funds.
Not ready to open. The technology was not perfect; not all the parking deals negotiated.
Make a mistake in finding the wrong guy to be president, Chase needs to think out ideas to let him go. * Management is unbalanced; Chase is committed full time, while Danielson is only part-time (but they share ownership and profits) * Venture may not be big enough (offer enough return) to attract sophisticated investors * “Daily max pricing” means that costs continue to incur while billable revenue does not; cars per member is actually less than predicted because of this usage pattern.
Don't forget to take a close look at the appendices.

Urgency/Importance:
It is very urgent as it is the end of September and she needs an effective presentation at the Springboard conference that takes place at the end of October if she hopes to raise additional funding in Zipcar. So the urgency/importance level is Four.

Decision Criteria:
(Getting a plan B in business, we need to identify an idea to pursue.
Taking the leap, we have to figure out the analogs, antilogs and some judiciously chosen.
The market was growing without much marketing in

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