Italia & ZipCar

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1

Why Italy?

Framework 2

•  Increased Taxes •  Increased Oil prices

Expensive Car Ownership

• Bike Sharing Success • Government plan: 16,000

customers, 500 cars

Sharing Culture

• Public Transportation • Need for cars occasionally

Convenience for Customers

Is there a Market for Zipcar? Market Analysis

Italia & Zipcar

3

Competition

Carpooling

Rental

Fragmented

Government plan not as convenient

Threats of new entrants is

relatively low

Potential Clients

Rarely need car/second car

Use Bike/Public Transportation

Short Trips

Environmentally Conscious

Students studying away

from home

Appeal of Product

Cheaper

Exceptions to environment

regulation

Convenient

Choices

Growth & Size

12% growth in cars, 15% in

users

17% people with license don’t have

cars

44% don’t have parking

space

2.8% of population

are potential clients

Market Revenue:

potential ~$155M

Which strategy?

Strategies to Enter 4

Joint Venture

• Most attractive partner: Mobility

• Too much risk, not enough reward

• Different business model

Merger & Acquisition

• Nobody to merge with

• Can’t buy government owned car sharing

Fully Owned Greenfield

• Capture market share • First movers

advantage • Consistent with

Strategy • High Costs: careful

planning of financing decision

What problems could we face?

Feasibility

Italia & Zipcar

5

• Online Infrastructure

• Smartphones Technology

• Strict regulations on emissions that increase costs

Regulation

• 70% doesn’t know what car sharing is Other

Problems

High speed internet widely available,

28% of Italians have a Smartphone

Government willing to fund up to 15%

Marketing campaign

What do we need to do? Recommendation

Italia & Zipcar

6

Financing

Focus on high

population density areas

Partnership with Auto

makers

Partnerships with

Universities

Q&A and appendix

Grazie per l’Attenzione

7

Car Sharing costumers in Italy

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Turin

Rome Parma

Palermo

Competition: car sharing services in Italy

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City Fists year of operation

Type of company

Milan 2006 Public

Bologna 2005 Public

Venezia 2002 Public

Torino 2003 Public and private

Modena 2005 Public

Genova 2004 Public and private

Roma 2006 Public

Parma 2007 Public

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Competition: car sharing services in Europe

State Start Users Population users%

What will the price of the service be?

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Company Annual Fee (€)

Hourly Rate (average in €)

Km rate (average in €)

Mobility (CH) 174 1.0 0.20

Communauto (Turin) 25 1.3 0.15

Car City Club 179 1.25 0.3

Zipcar Barcelona 45 6 20 free km

Zipcar London 75 5 50 free km

Bibliography �  “Car sharing: an international Analysis”; Italian

Ministry of transportation �  “Car sharing: Business and Market”; Burlando,

Arduino, Nobile �  “Car Sharing”; Opera research group �  “Sustainability: Zipcar IPO”; greenbiz.it �  “A conversation with Zipcar CEO”; Kilcrease �  “Zipcar buys Avencar”; abc.es �  Zipcar.com

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