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History Of Car Sharing

Car sharing begun as experimental auto sharing in 1948 with undertaking Selbstfahrergenossenshaft conducted at Zurich as portion of lodging co-op. The modern auto sharing undertaking nevertheless introduced in 1969 with Witkar or “ White Car ” undertaking in Amsterdam. It was the development of Luud Schimmelpennink ‘s “ White Bicycle ” plan where society could borrow and utilize any white bike located in the metropolis of Amsterdam, and merely go forth them at point of finishs. The “ White Bicycle ” subsequently evolve into Witkar or “ White Car ” when Schimmelpennink introduced 35 three-wheeled electric vehicles situated in five different Centres around Amsterdam.

Contemporary auto sharing is the development of Witkar construct, where users were given entree key to vehicles which they could utilize and return at topographic point nearest to them. Progresss of engineering and communications lead to inventions and auto sharing enlargement globally. Car sharing was introduced in the US in 2000 by Flexcar and Zipcar. Currently auto portion operators have presence in 17 states around the universe chiefly in Europe and the US.

Analysis of Market


Robin Chase and Antje Danielson founded Zipcar in June, 2000 at Boston, Massachusetts. Zipcar enlargements outside the US markets begun with Toronto, Canada in May 2006. Currently Zipcar has the presence in 14 provinces and states besides London, Toronto and Vancouver. Zipcar is the largest auto sharing operator in North America and the universe. Zipcar for Business ( Z2B ) plan was introduced in 2004, to supply transits for concerns around the state. Customers included Whole Foods and Krispy Kreme. Strategic confederation with universities in the US were developed in the same clip. This allowed auto to be located on colleges campuses besides giving price reductions to pupils.

The amalgamation of Zipcar and Flexcar in 2007 addition the fleets from 3500 vehicles to 5000 vehicles. It is besides the lone company that achieve profitableness in all the market it operates. Zipcar has the end of cut downing autos on the streets besides cut downing the clip we drive them. It has managed to cut down more than 20000 autos off the streets.

Car Sharing

Zipcar operations are memberships footing. The start-up rank fee in the US is $ 100, and the one-year rank fee of $ 50. Hourly usage rates start from $ 7.50 per hr or $ 56 per twenty-four hours. Members received Zipcard as cogent evidence of rank. The card besides serves as unlocking device for all vehicles within Zipcar fleet. The key to the vehicle is attached together, and the windscreen door will be unbarred when the Zipcard is waved near the windscreen.

The engineering developed by the Zipcar, used together with Cingular ‘s radio web allowed alternate options of auto ownership while keeping easiness of usage, convenient, dependable and secure as a in private owned auto.

With the promotion of cyberspace and radio engineering, Zipcar allowed members to reserve auto 24 hours a twenty-four hours, seven yearss a hebdomad through cyberspace ot automated phone system. The reserve system unlocked the reserved Zipcar when RFID reader on the windscreen received signal from Zipcard flashed by members via Cingular ‘s radio web. The auto sends usage information back to Zipcar at the terminal of use to update monitoring system besides bear downing members for the reserve made.

Members could go forth behind valuable point in the auto after finished utilizing them. Hence, Zipcar created a distributed self-service system, where members are encouraged to go forth the points in the vehicle when found the left or lost points, and describe them online. Items proprietor could see online “ lost and found ” to look into if any member reported the doomed. Zipcar inside informations in the study allowed members to reserve the same auto once more in order to recover the lost points.


With the success at North America, and United Kingdom, Zipcar will be come ining Malaysia as an advanced and new construct. Therefore there are no direct rivals which already fulfill the demand our service provides. With that being said, there are three classs of industries and houses which will indirectly vie with our merchandise and therefore are deserving being discussed and examined. These three classs include auto ownership, auto lease, and public transit. Briefly, as mentioned earlier, use of our service can really realistically function as an option to auto ownership. In fact two surveies in the United States have shown that under moderate to average usage, auto sharing will turn out less dearly-won so ownership. This is particularly true in Malaysia, a market with highly high fuel, auto duty, and toll monetary values. While our pricing scheme does non see ownership as a rival, it is a note to convey out in our selling scheme and runs. For case, because land is scarce in Kuala Lumpur, there is a high cost for parking.

The 2nd indirect rivals are auto rental bureaus. It is once more of import to clear up the differences, both operational and mark market, between traditional auto rental houses and Zipcar, a auto sharing operator. The two primary separating factors are that our vehicles are available for usage on an hourly footing, instead than a day-to-day lower limit, and our vehicles are centrally located in assorted sites around the metropolis, instead than centrally located near an airdrome. The mark market of most auto lease bureaus are tourers who are sing the metropolis for a lower limit of one twenty-four hours, non the occupants who live in the metropolis as is our mark market. Major international auto lease companies which operate in Malaysia include Budget, Avis, and Hertz. They operate 100s of mercantile establishments across Malaysia, offering autos in all sizes and, in some instances, big new waves, and coachs. Average rental monetary values at these houses in RM 120 for a 24 hr period, with limitless milage are as follows ;

Sub-compact for RM 120, Compact for RM 90, Intermediate for RM 150 and Standard RM 200. These monetary values played a important function in the hourly pricing construction we finally decided on for our service. However competitions from auto rental industry is higher among the three as there are auto rental bureaus that charge hourly rates, besides 8.00am to 8.00pm rates like KMT Global.

Car rates comparings

Pacific rent a auto:

KMT Global





8.00 – 8.00








Perodua Kancil




Perodua Kelisa




Perodua Viva



Perodua Kenari



Perodua Myvi



Proton Saga ( A )




Proton Wira ( M )




Proton Wira ( A )








Proton Waja ( A )








Protin Gen 2 ( A )



Proton Persona ( A )




Proton Perdana





Honda City / Toyota Vios





Nissan Sylphy


Toyota Altis 1.8




Toyota Camry / Honda Accord



Nissan X-Trail ( 4WD )



The concluding indirect rival for our merchandise is the public transit systems. Kuala Lumpur has a web of LRT, coach line and taxis, which are the most convenient agencies for traveling about Kuala Lumpur ( see MAP of LRT, RAPIDKL ) . However, once more the mark market of this transit manner differs from ours. The user base of people going within Kuala Lumpur utilizing our service will be limited to those necessitating trunk infinite or the other comfortss of their ain vehicle. Our merchandise is more geared towards those users who will be go forthing the metropolis bounds of Kuala Lumpur, where mass theodolite lines are less convenient and available. This besides avoids tete-a-tete competitions with public transits as authorities is bettering the transit systems in order to better mark ridership to 600,000 per twenty-four hours in 2012 compared to 240,000 presently.

Car Sharing SWOT Analysis


Klang Valley with estimated populations of 5.7 million provides immense market for Zipcar. 25 % of them are between 18-35, whom are the targeted group for Zipcar members. They consist of pupils and working grownups. Monthly ingestion outgo for this group is about RM2,300 per month.

There are 14 private and public universities in Klang Valley. These are the first-class hub for Zipcar besides authorities composite and commercial countries. Renting the parking infinite at that place allows handiness to the mark group. Zipcar members contribute to cut downing route congestions by auto sharing.

Zipcar allowed vehicle to be shared after office hr base on hourly rate, unlike auto lease where could be merely be reserved on office hr, and rented on day-to-day footing. The flexibleness, and nest eggs sets apart Zipcar from auto lease bureaus. Members could utilize public conveyance to transpose to work, but have the entree to driving when required.

A Zipcar member is besides relieved from duties of paying auto insurance, route revenue enhancement, care of the auto, funding cost and auto fixs. These give them more fiscal freedom versus having a auto.


GDP for Q3 2009 was -1.2, while Q4 2009 was 4.5. Malaysia economic system is retrieving get downing Q4 2009. However, in-between income group besides pupils has become more prudence in their outgo, preferring to utilize public conveyance when state of affairs permits.

Malaya is the lone state in Asean bring forthing its ain auto. Government has policies protecting the national car manufacturers, promoting auto gross revenues from Proton and Perodua. High auto ownership surely reduces the entreaty of Zipcar.

The reserve, pick-up and return Zipcar is self-service, done on web site, and depending on manus phone. Members need to hold recognition card for enrollment and payment intent. Those without recognition card will be unable to utilize Zipcar. Zipcar besides can non be parked at sub-urban where manus phone coverage is unaccessible.


Although with the bettering economic mentality, in-between income group would still cut down unneeded outgo. Alternatively of purchasing a auto, they could choose for auto sharing where nest eggs could be achieved. Surveies by AAA in the US showed that sharing a auto cost lesser than having a auto when driving less than 30 hours a month.[ I ]Increasing concealed cost in auto ownership besides increase the entreaty for Zipcar, as parking cost could be avoided besides care and other assorted costs like route revenue enhancement and insurance. Passenger vehicle ownership in Malaysia is a dearly-won matter as they cost between

Government plans to better and widen public transits web would complement for Zipcar. Current public conveyance ridership in Klang vale is 240,000 and authorities programs to increase them to 600,000 in 2012. This provides immense chance for Zipcar as Zipcar scheme is to supply transit for countries beyond the range of public transit coverage. Zipcar will be located ar reserved parking tonss at the coach Stationss and railroad Stationss at the terminal of the path. This serves as a transit mix for drivers, supplying the convenience of driving to members.

Klang Valley auto ownership per 1000 people in 2002 was 994. With the turning vehicle gross revenues in Malaysia, the vehicle ownership today is much more, with a individual own a auto at least. Malaysia has the 4th highest auto ownership ratio in Asia Pacific after New Zealand, South Korea and Australia[ two ]. This gives large potency in presenting auto sharing construct in Malaysia. Malaysia neighbor in the South has two companies runing auto sharing, i.e. , Kah Motor Co. and NTUC Car Cooperative[ three ].

The experience from the US operations showed that each Zipcar there takes15-20 personal registered auto off the route. Base on that, Zipcar targets to cut down 10 personal autos off the route in the Klang Valley for each Zipcar[ four ]. This could cut down C emanation to the armosphere, and being environment friendly.


Increasing gasoline cost reduces the entreaty for Zipcar. Although members are non charged based on gasoline cost, but they are billed harmonizing to the milage, which link straight to petrol cost. Mileage charges by Zipcar are adjusted harmonizing to the gasoline monetary value set by the authorities.

Competitions from auto rental bureau is expected to be high as the industry mature. There are bureaus that offered hourly rate besides corporate rate for corporate clients. This could vie with Zipcar.

Zipcar needs tonss of parking hubs for its fleet. Increasing parking cost surely addition operation costs for Zipcar.

hypertext transfer protocol: //

Beginning: Malaysia Automobile Association[ V ]

Porter 5 Forces

Huge initial investing

Technology inventions


Car Ownership

Car Lease

Public Transportation

Gasoline cost

Car sharing cost

Convenient / easiness of usage

Locations / distributions

Government policy

Vehicle maker

Wireless web supplier

Internet service supplier

Service & A ; care

Beginning: Ministry of International Trade and Industry, Malaysia[ six ]

Business Proposition

Measureable and come-at-able aims

Zipcar has imagined a hereafter where major metropoliss in the universe will hold less auto proprietors compared to car-sharing persons. Similar to Zipcar of the USA, our mission is to enable simple and responsible life. How? Our Zipcar theoretical account is drawn around the impression of supplying an alternate to auto ownership whereby our clients can retain the convenience provided by having a vehicle without really having one. In our concern, we value all drivers as probationary spouses in our pursuit to supply mobility at the best value while cut downing the C footmark. Therefore, our focal point will be to supply our spouses with exceeding individualized traveling experience in a clip and cost efficient mode while lending to the improvement of the environment at the same clip.

Our long term ends

To be the accelerator of responsible mobility through the new transit class called auto sharing in Malaysia and finally South-East Asia

Our short term ends

To educate the populace on the C footmark and how auto sharing and Zipcar can impact it.

To accomplish 20 % of overall market portion within the first twelvemonth, hitting a minimum 10,000 rank grade

Achieving dual digit growing within the first three old ages.

To accomplish breakeven point on our investing within three old ages of operation.

Target Market

Our intended mark market is metropolis occupants within the Kuala Lumpur/ Klang Valley country who drives and hold purpose to have a auto. We are aiming such persons within the age group of 18 to 35 old ages old.

This age group represents some 25 % of Malaysia ‘s population. Persons within this peculiar age group may be by and large categorised as immature grownups fall ining the work force or still set abouting their third instruction. Bing in the early phases of the merchandise rhythm, they are classified as the most likely early adoptive parents, suiting our mark market. This age group is besides one of the largest subscribers to the overall work force in Malaysia ( Department of Statistics Malaysia, 2009 ) at more than 48 % , bespeaking a big pool of population for puting up a market base. It is anticipated that at this occasion, these persons may non be taking home a disposable income big plenty for auto ownership but would still be equal for leasing one alternatively. This comparatively immature age group are besides being associated with freshly acquired independency and active life style, therefore the increased demand to run errands personally and societal excursions and hence the demand of low-cost mobility.

Taking the cue from our sister operation in the US, we shall besides be using the cyberspace and other nomadic telecommunication appliances such as smart phones to interface with our clients, puting being IT literate into our mark market profile. Hence, bandwidth capablenesss and substructure adequateness play a cardinal function to our concern theoretical account. Malaysia, for one, had an exponential growing in the ICT and telecommunications industry whereby nomadic phone incursion rate has increased by some five-folds since twelvemonth 2000 to 100.8 % as of terminal June 2009 while broadband incursion has besides increased from 1.0 % in twelvemonth 2004 to 7.5 % of the same period. The Internet World Statistics has farther ranked Malaysians to be among the top 10 cyberspace users in Asia in the second one-fourth of twelvemonth 2009, settling at 9th topographic point with 16.9 million users. The Malayan authorities has farther taken stairss in bettering the current existing cyberspace and broadband services to let a higher internet incursion rate within the population, supplying the people including our mark age group easier and faster entree to online information.

As for location, there is no clear word picture of the exact location of Klang Valley. Generally, the Klang Valley is taken to besides embrace the Selangor territories of Petaling, Klang, Gombak, Hulu Langat and Sepang together with the Federal Territories of Kuala Lumpur and Putrajaya. Situated within the Klang Valley, Kuala Lumpur is the capital and largest metropolis of Malaysia. Kuala Lumpur is home to many commercial and societal entities such as governmental bureaus, private concerns, topographic points of instruction, faith and civilization, merely to call a few. With an overall population of about 1.6 million, approximately 6.1 % of the entire population of Malaysia is concentrated in Kuala Lumpur, doing it the most populated metropolis in Malaysia. It is besides the most dumbly populated metropolis in Malaysia at around 6600 individuals per square kilometer. The Kuala Lumpur Structure Plan 2020 has projected that the population of Kuala Lumpur will increase to about 2.2 million by twelvemonth 2020 with an estimated employment ratio of approximately 64 % . The heavy population count is a important factor as our concern theoretical account relies on puting vehicles at strategic sites around the metropolis where it is easy accessible by our mark market.

It is besides noteworthy that in twelvemonth 2000 whereby the per capita GDP of Malaysia is at RM 14,584, Kuala Lumpur is already timing in at RM 30,727, about twice the sum of that for Malaysia as a whole ( KL Structure Plan 2020 ) . This may besides be associated with statistics released by the Malaysian Road Transport Department ( JPJ ) in twelvemonth 2010 whereby Kuala Lumpur maintains its place as the province with the most figure of vehicles registered, bespeaking a strong demand for vehicles i.e. transit solutions.

Coming back to our market mark, another association could be with the instruction line. There are more than 14 public and private universities/ colleges within the Klang Valley, each with a steady flow of student population. On one manus, the pupils will be able to use the benefits available from the use of the Zipcar services i.e. mobility at an low-cost monetary value. From the instruction supplier ‘s point of position, reduced figure of motor auto inflow/ escape besides reduces the demand for on-campus parking ; this in bend reduces traffic congestion and the demand to supply a batch of parking infinites within the campus evidences. The indirect benefit from this is the greater infinite available for other developments such as new larning installations or even merely verdure, which helps to equilibrate the ecosystem.

Our mark market nevertheless is non restricted to those with possible for retail gross revenues ; as such persons coming into the work force besides unfastened another moneymaking sector to be explored that is the corporate or concern sector. Corporate gross revenues scheme shall include presenting the Zipcar theoretical account to administrations instead than merely persons for the intent of concern going or as an employee benefit. The Zipcar USA portfolio of clients includes Twitter, Shepley Bulfinch and many others and has proven to be really successful so far. Locally, we expect a big following from this mark market due to the high denseness of working category persons particularly within the metropolis Centre.

Presently, Singapore is the lone metropolis within the ASEAN part to hold a auto sharing plan running with a certain rate of success and profitableness. New merchandises such as Zipcar may hold the possible to open new markets and future growing chance. A successful assimilation of this merchandise into the mark market is utile in puting a solid foundation when opening up other new markets in the remainder of the ASEAN markets.


ZipCar is positioning itself as the best value quality auto sharing service supplier. In achieve this placement, ZipCar ‘s competitory advantage lies in ability to supply hassle-free use of pick vehicles at sensible monetary values. The alone merchandising point which sets Zipcar apart from the other rivals is its concern aim of supplying auto sharing, a measure towards environment preservation by cut downing the overall C footmark instead than merely auto rental. Persons and administrations are being offered a locale to make their spot for the environment, apart from cut downing traffic congestion by take downing the vehicle count on the route. Besides, past public presentation in the United States of America where some 6,000 vehicles are shared among 275,000 drivers in 49 US metropoliss in some 10 old ages enables post-mortem analysis to be conducted to place cardinal countries of strengths and failing and to turn to them consequently.

Strategy Statement

The key to the selling scheme that we are suggesting is to advance the easiness of utilizing a vehicle without the usual fuss of having one. Ease of usage at a sensible monetary value coupled with the altering fuel markets where uncertainness is prevailing signifiers an attractive merchandising point.

Our selling scheme will foremost affect presenting ZipCar to the populace to make consciousness for this merchandise. This will be conducted through puting up of a website whereby extended information in relation to the merchandise, demands, publicities etc is published. The web site can be listed with the online concern directory for even better web coverage. Website advertisement is one of the most cost effectual and efficient methods to circulate information to a big group of people. This method will appeal to the net-savvy community. Apart from that, we besides propose to advertisement in forte magazines such as the “ Malaysia Car ” magazine whose endorsers are chiefly centrifugal vehicle partisans. Relatively more expansive than website advertisement, this medium may turn out effectual as readers of such magazines falls within our mark market.

The following measure shall to set up confederations with other administrations or instruction Centres. Similar to what is done by Zipcar in its operations in the United States, it has provided its auto sharing service to pupils at reduced rates through partnerships with over 30 universities. Statistics has shown that universities which joined this plan has enjoyed lower carpark demands, which at the same clip supplying US Zipcar with some 15 thousand members which histories for about one-sixth of its overall US rank. This win-win state of affairs would besides really much applicable in the Klang Valley instruction scene with its high denseness population and limited parking infinite proviso.

At the same clip, confederations with local vehicle manufacturers such as Proton or Perodua or with second-hand auto traders to complement the auto fleet that ZipCar is holding allows the benefit of enlarging the pick of vehicle available, providing to the differing demands of its clients.

Key Planning premises ( citation )

Looking at the decreasing tendency of fossil fuel, more and more of motor auto makers today are now switching their resources towards the development of options such as intercrossed autos and electric autos. Current market has it that such autos are by and large much more expensive as compared to a conventionally-fuelled motor auto and hence may be out of range of certain on the job categories. As our market mark by and large revolves around immature grownups shortly to be or freshly absorbed into the work force, hence we assume that the increasing debut of these autos will non impact the gross revenues of conventional autos.

Establishing on the tabular array, the entire figure of motor autos is on the upward tendency, bespeaking that the motor autos are still in demand. However, an issue worth sing is the current traffic status within the Klang Valley whereby traffic congestion is the norm as with many other major metropoliss of the universe. The Klang Valley has been reported in the Economic Report 2009/2010 to hold a lowly ratio of 16:84 in footings of public versus private conveyance use. As there are several upgrading of current substructure undertakings in the grapevines of the Malayan authorities, the tendency for private auto ownership is anticipated to cut down. As the probationary aim of cut downing traffic on the route is besides accomplishable through auto sharing, in this instance Zipcar, it is assumed that our concern theoretical account should besides take benefit from these programs.

On another note, literacy rate in population count has increased from 24.3 million to about 25.5 million for the same period. We have assumed from these statistics that our mark client base are besides progressively educated, leting easier airing of new information and debut of new merchandise. It is expected that this knowledged population will be more cognizant of current environment issues and hence more receptive to new thoughts such as what our concern is all about to conserve the environment. At the same clip, they are anticipated to be able to judge the right from incorrect and therefore less likely to use these car-sharing services for illegal intents such as perpetrating offenses.

Action Plan

We will come in the Malaya market through a subordinate. There are two chief grounds for this program. First, there is no auto sharing operator in Malaysia at the minute. This will govern out the possibility of doing an acquisition on current bing operator. Second, a subordinate of ZipCar in Malaysia will let us to construct a localised presence in Malaysia to better function the Malayan market which is particularly important during the start-up phase.

This scheme will let us to reassign the nucleus competences, concern theoretical account, and engineering platforms from the HQ ZipCar in US to Malaysia while leting the subordinate here to possess the ability to accommodate to assorted localised factors such as pricing, corporate civilization, and client relationship direction.

However, our entryway into Malaysia will clearly confront many first mover challenges particularly since the thought of auto sharing is a new construct in Malaysia. Typically most Malayan in Klang Valley travels around in their vehicle such as bike or auto since vehicle ownership is really high in Malaysia. For cheaper option, they besides rely on public transit such as LRT, coachs and cab to go cheaply in the metropolis.

Cultural Factors and Adaptations to Service the Market

In Malaysia, there are few jubilations such as the Chinese New Year, Hari Raya, Deepavali, New Year, Merdeka Day and School vacations whereby a big part of the population will returns to their hometown. This will ensue in high inflow of auto uses during this period and in bend causes monolithic traffic jam in the main road systems in Malaysia.

There are two sole results which we would wish to capitalise on this chance. First, we will either see an addition use in ZipCar as more people travel during this period or we will see a lessening in use during this clip period as occupants require less temporal manners of transit. As this construct has yet to be tested in the market, the rating of these two results must be taken in our first twelvemonth of operation.

If there is an addition in usage, we shall increase monetary values during these clip periods in the undermentioned twelvemonth. However, if we see a lessening in use, we can so choose to experiment with longer continuance rental rates for those specific times, or offer publicities & A ; price reductions during this period to increase the use of our services during the holiday period.

Another factor to see is the strong sense of ownership which Malayan holds. As a consequence, it may be ab initio hard to further a sense of joint ownership. Although this surely is one side of the issue, we can see the other side as good. It coincides with the Malaysia wonder of new merchandises and engineering. The debut of a radical construct to the market, we believe will pull first-time users. Then our new users will recognize that our system is more convenient and less dearly-won than auto ownership or other options of transit. As a consequence, we suggest modifying the pricing construction of initial rank fees. While in the United States first clip users face an upfront cost of $ 150 before going a member, we plan on cutting this in more than half and doing these charges total RM, or the current equivalent of $ 70.


Human Resources

To run ZipCar in Malaysia, we propose to construction our human resource into three distinguishable employment Fieldss ; viz. scheme and operations ; care and cleansing ; and client service.

We believe that our quality of services is highly important in our scheme to convert the bing auto proprietors to seek our services. As more are convinced, word of oral cavity will assist to distribute and change over other auto proprietors. Therefore, we will use a squad of extremely passionate staff to implement locally antiphonal selling run and topographic point our vehicles in the most efficient and effectual topographic points in the metropolis. Equally much as we will seek to return to online engineering, other maps will still be handled by our friendly and fun employees such as the coordination of rank enrollment ; working with local concerns and universities to make profitable partnerships ; and working with our local providers and governmental functionaries to construct solid relationships.

However, we believe our care and cleansing maps will be more efficient if they are outsourced. It will be a cheaper and more efficient scheme our lacking of care installations. Similarly, because most of our concern is conducted via our cyberspace portal, we anticipate a low degree of client service inquires. Therefore, we feel that this map will be more expeditiously served through outsourcing every bit good, with our local employees functioning as an mediator.


The success of Zipcar is based on three chief pillars. First, the use of Zipcar demands to be inexpensive. This means that the entire cost of the service should be relatively cheaper than having a auto from the facet of care, insurance, gas, and the monthly instalment payment of a auto.

Second, the use of ZipCar demands to be simple adequate that anyone can easy larn to utilize it. Zipcar ‘s members will be given a username and watchword for on-line enrollment. In add-on, a ZipCard will besides be given. This card will enable the members to unlock the autos that have been reserved. The keys are ever for good located in the auto. Therefore, Zipcar members merely need their ain ZipCard to derive entree to their reserved auto.

Finally, the use of ZipCar demands to be convenience for its members. Based on the survey in US, a individual auto should be able to provide to 50 members. However, there must ever be a auto within 1 to 2 blocks from each member who intend to utilize the ZipCar. Therefore, we are using the aid from Microsoft to help us to cipher the fluctuating demands in apportioning our autos to our members.

Should the demand for our services exceed our capacity, we may see holding our rank consumption while we expand our auto fleets. Temporarily, we can either buy the autos straight from auto traders or rent from bing auto rental companies. This should non take more than a month before we stabilize the sudden demand growing if any.

Value Added Features


We intend to leverage on several alone selling points in forcing our ZipCar services in Malaysia. First, we intend to construct the trade name to be associated with stylish, fashionable, merriment, smart, tech understanding, socially responsible and environmentally friendly. We intend to construct a community civilization get downing from our ain employees. All our employees, providers and direction squad needs to first and foremost embrace the above mentioned civilization. Then, we will spread out this to our members by promoting them to portion their narratives. We may even keep public events in metropolis every few hebdomads to make consciousness about ZipCars and its civilization.

Unique Lifestyle

Following, we will use this impulse and push frontward to encompass the populace. We will direct out the message that utilizing Zipcar is less expensive, more convenient and more merriment than having a auto. In the US, it has been proven that members of ZipCar will salvage every bit much as $ 435 per month. We will educate them and even demo them how the experience of drive will go FUN. We believe this will be successful with the integrating of societal media such as Facebook and Twitter ; and besides engineering such as iPhone.

Zipcar will let its members to take from 20 different types of autos and theoretical accounts runing from low terminal to high terminals. The chances will be endless for our Zipcar members when they are able to hold entree to a broad assortment of autos and lone wage for when they needed it. For illustration, they can choose to drive a Mercedes to convey their clients out for tiffin. In the eventide, they can exchange over to an MPV to drive their whole household out for a household outing. Then on regular on the job yearss, they can drive bike to office and switch to a inexpensive Perodua Kancil to drive out and run into their clients. The possibilities are endless.

It will besides be an extension of the public transit system in the metropolis Centre. Zipcar will non vie with coachs, taxis or train. Rather, it will promote its users to walk more, rhythm more and use the public transit system more. Zipcar will be placed at each of the LRTs as an extension for the Zipcar members to go cheaply.

Unparalleled Support Servicess

Using the power of Facebook and Twitter, we will be able to supervise our members feedback in existent clip. In fact, we will promote them to feedback utilizing these medium since it is inexpensive for us to supervise and besides let us to respond in existent clip. We will spouse with VAD, a client service support specializer to supply a complete 24/7 client service support. Our services besides provide the agencies for timely service. The ready handiness of a auto when a member needs it will increase the frequence of a member ‘s use and strengthens the client trueness.

We will besides desire our Zipcar members to travel planetary. Our ZipCard is recognized and accessible to any Zipcar around the universe. However, should any proficient troubles arise so our members merely have to dropby at our service centre for aid. They can besides name our hotline for our service squad to dropby and assist them out.


All our autos will come with a GPS monitoring system. This will let us to remotely supervise our assets in existent clip. The GPS monitoring system will non merely cut down our insurance premium, it will besides do it safer for our members. We will hold a really rigorous privateness policy whereby we do non supervise our members ‘ motion but instead merely the autos. This manner, our autos will be maintained better and the location of the vehicles will let us to break utilised and placed strategically around town.

About Virtual Support

Zipcar ‘s operating expense disbursals will convey to really minimum by holding one cardinal location to pull off our assets and clients ‘ service which will requires really few field employees in each market. Additionally, Zipcar ‘s manner of vehicle distribution will extinguish the demand of big parking tonss of vehicles. There are no counters, no lines and no waiting: Merely drive.

To guarantee wide coverage support, we will spouse with Digi ‘s information web its expertness of professionals across the state. This will hasten Zipcar ‘s enlargement into new markets. The partnership with Digi will besides let extra invention to be added in the hereafter. The broad scope of Digi industry confederations and dedicated expertness of Digi will do adding these service a smooth passage for ZipCar every bit good.

Monetary value

We propose to use a bipartite pricing scheme ; one-year rank fees and hourly or day-to-day rental fees. The whole thought of holding one-year rank fees is fundamentally a client keeping scheme. We want them to be committed to utilizing ZipCar and be portion of its civilization. Of class, we will see some inducements to fall in early or referrals for friends presenting friends plan.

Based on the surveies in the US, our optimal auto use ratio is 1:50. 1 auto for 50 members. Therefore, we believe this pricing scheme will assist us in accomplishing our mark. Furthermore, we will seek to cut down our hourly rates for the first 2 hr. We believe this will be the most optimal clip for the bulk of auto users. This will besides promote the auto users to infinite out their use so the auto can be rotated for other members as good.

Topographic point


This is where we believe the acceptance rate of our services will be easiest. Students are normally the most likely users who can follow new construct and engineerings. In this instance, we will do it really inexpensive by promoting universities to supply certain degree of subsidies to present Zipcar in the campus country. This will cut down congestion around the country and do the topographic point safer and less air pollution. Furthermore, Zipcar will aim foreign pupils since they are the most likely to purchase a auto upon geting in Malaysia to analyze. Zipcar will be a great option for them.

LRT & A ; RapidKL

Acting as extensions of public transit system, ZipCar will be able to widen the coverage associated with RapidKL. This co-branding exercising will be reciprocally good to both parties. RapidKL can leverage on its web and advertise in ZipCar every bit good. Reservation for both services can so be integrated via Zipcar web site or via RapidKL counter.


Business usage of Zipcars has changed the concern theoretical account for companies across the state every bit good as for Zipcar. Businesss have traded in company fleets of autos for the cost and environA­mental benefits of Zipcar. Other companies have turned to Zipcar to establish bringing services or supply the occasional auto to caput to an out of town meeting or pick up a client in-style. In the US, when the concern offering was launched in 2004, it changed Zipcar ‘s concern theoretical account because the autos were now being used during the weekday, intending there was no “ down clip ” .


Foreigners will decidedly happen this services most appealing. They will hold the chance to adventuresome and research the metropolis and its fringe without excessively high disbursals. After all, Zipcar is recognized worldwide, where Zipcar is available. Therefore, if they are already a Zipcar members, they can immediately entree to our services. Otherwise, a simple enrollment should non take more than 30 proceedingss for us to trip the rank. Of class this will necessitate a walk-in at our HQ.



As a new company and wholly new construct, the selling map is really important to the success our company. We plan to put advertizements in local newspaper, athleticss day-to-day magazines, wireless ads, and on the cyberspace. We will besides buy ad infinite on popular hunt engines such as Google, since our service is accessed through the cyberspace. Furthermore, we shall non bury to market Zipcar through theodolite advertisement. This is because our merchandise will function as in one map as an extension to public transit

We will use on-line publicity to our mark markets chiefly via the followers:

Social Media – Facebook

Online newspapers – TheStar

Radio station –



Recommendation for future action

Once Zipcar has become successful in Malaysia, we intend to spread out the services into neighboring states like Thailand and Singapore. As we expand into these different geographical markets, we will besides be presenting a new service which we envision it as Car-Meeting. Basically, we will supply a platform for our members to run into with each other and be after a trip holiday utilizing our ZipCars. This service will continue our civilization and believe that driving should be merriment, inexpensive, and convenience. All this while cut downing the Numberss of autos on the route.

Eventuality program