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