This car sharing company operates on the basis of a completely different framework through which the company has made its customers as the shared car owners. The business model adapted by Robin Chase is highly efficient and functional business model for the Zipcar. Zipcar Business Proposition, Potential Challenges and Revenue per Day in Dec 1999 We begin the analysis first by defining the business model and the business proposition on the basis of which this business model has been built. What recommendations should Chase follow to put strong arguments in front of the Springboard forum?.Is the $ 1.3 billion financing justified for the company?.What does the actual operations data in Sept 2000 tell us about the business model of Zipcar?.Why was the financial plan revised in May 2000?.On what value proposition is the business model for Zipcar built?.There are several issues that we would be analyzing and discussing in this report: The problem at hand is to analyze and assess the current business model of the company and its underlying economics for evaluating the validity and the shortcoming of the business as it actually rolls out. Now, the business is facing many strategic decisions as it is moving ahead and thinking to expand in 14 other cities. Several iterations are defined in the case for the development of the financial plan and the business model for Zipcar. This business has been established around the idea of car sharing services and charging the customers based on the car usage by the member organizations. Zipcar is a startup business and the model of the company has been just completed. After detailed analysis, Chase should seek financing of $ 1.3 million from VCs to complete the technological system development and fuel the growth of the company. The estimate of revenue based on September 2000 actual data shows that revenue has actually increased but the costs have also increased. However, the actual operating data from September 2000 showed that some costs have exceeded the budget and expectations of Chase, the CEO of Zipcar. Several changes were made in the revised financial plan in May 2000 which reduced the average Zipcar revenue per day. Zipcar is now facing many strategic issues and it faces the challenge of refining its business model. This case highlights the development of the business model and various revisions of the financial plan of the company from the end of 1999 to the mid of 2000. Zipcar is a startup car sharing business that had introduced the idea of sharing car and using it through the membership organizations. ZIPCAR: REFINING THE BUSINESS MODEL Case Study Solution

Rejoin zipcar