Zipcar is a carsharing service whose slogan reads: “wheels when you need them.” The main point is that customers can use the vehicle for a short period – a few hours, not a whole day. Zipcar members book their cars online, indicating their desired hours, location, and other preferences. Zipcar offers everything from pickups to hybrids and luxury cars for dates (Moruzzi, 2021). Zipcar participants are issued smart cards that are used to unlock the vehicle they have booked. The keys are already in the car. The company uses RFID for a card reader that is supposed to communicate with Zipcar’s home office, presumably via cellular communication. It requires a combination of wireless and hardware technologies to work. All these technologies allow the company to provide access for its customers at any time convenient for them.
For the company, several security issues may arise when customers use its products. The company has a risk that the rented cars may be stolen. However, Zipcar can access video surveillance systems and cameras if indicated on signs in the appropriate place of the Zipcar group, which record activity in Zipcar capsules (Clemens et al., 2020). A fixed fee of $139 if the car is not returned to its original location before the end of the trip (Moruzzi, 2021). Although the idea of renting cars on demand in cities is fantastic, many people who rent these cars are inexperienced simply because they do not regularly drive (Moruzzi, 2021). In Zipcar, a document check allows for reducing the risk of accidents.
The data collected from users on Zipsters clarified the main reasons for using carsharing applications. They are in the presence of luggage or bulky items, need shorter travel time/public transport would take too much time, and cannot afford their car. Data shows that Zipsters rely on walking, cycling, and public transport for short trips and turn to car sharing for longer, purposeful or recreational trips out of town. Based on these data, ZipCar can build an up-to-date marketing policy for its operational and strategic success.
Carsharing apps are a tempting target for intruders. This is a potential risk of losing the company’s customer data. By hacking the app, an attacker can hijack legitimate accounts to gain car access without paying for them, steal cars for spare parts, or commit other crimes. In addition, such entities can also track people’s location and receive the account owner’s personal information (Clemens et al., 2020). Zipcar has implemented security measures and practices to protect customers’ information integrity and security. However, no security system is impenetrable, and we cannot guarantee the security of the systems at any time.
“After all, the biggest challenge for a modern business is not to find a great technology to support its model, but to make sure it does not become so dependent on this technology that it creates huge vulnerabilities for itself and its customers” (Chase, 2008). This statement demonstrates concern about the controlling function of the company. It must not be the technology that controls the processes but the processes that control the technology. The company highly depends on technology for smooth operation, such as online booking, payment, and fleet management. Any failure of its integrated system could be a disaster. Nevertheless, a contingency business plan is crucial and needs to be posted.
Their marketing tactics have a specific weakness since it is largely unknown to the urban masses. This can lead to a loss of sales if potential customers who want to rent a car in Chicago can look for traditional rental agencies rather than carsharing (Clemens et al., 2020). In addition, this website was not optimized for search engines. They use social networks and city billboards for advertising. New customers learn about the company through social networks, and the main reason for joining is that the company has much positive feedback. A good brand reputation is their main advantage when choosing their company for new customers. Zipcar focused its initial idea on gathering a base of loyal members rather than attracting a more comprehensive range of consumers.
References
Chase, R. (2008). The idea behind Zipcar (and what comes next) [Video]. TED Talks. Web.
Clemens, V., Wilden, R., & Nüesch, S. (2020). The sharing economy landscape: Structuring research from Airbnb to Zipcar. In Academy of Management Proceedings (Vol. 2020, No. 1, p. 17465). Briarcliff Manor, NY 10510: Academy of Management. Web.
Moruzzi, M. (2021). La ideología de Internet: De A como en Aplicación a Z como en Zipcar. Massimo Moruzzi.