Zipcar benefits that the business can offer

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“Robin Chase, Zipcar, and an Inconvenient Discovery”

Inside the article, “Robin Chase, Zipcar, and an Inconvenient Finding, ” Deborah Ancona and Cate Reavis give the account of the formation of Zipcar, a car-sharing company located in Cambridge, Ma and Boston. The article is known as a case study of how the company was created and the difficulties it encountered after it is inception. The authors remember that the founding fathers of the undertakings were Robin Chase and Antje Danielson while the Blue jean Hammond was Zipcar’s initial investor. 4 months following the launch in the car-sharing start up, its co-founder could not believe that what she discovered regarding the organizations financial overall performance. Chase found that the company had produced small income than the founding fathers had expected. Based on this kind of discovery, the situation reveals various issues that affected Zipcar, substitute solutions to the problems and suggested solutions while discussed under.


Zipcar’s frontrunners invested considerable time on developing the firm’s website, formulation of costs model and raising money for expenditure (Ancona and Reavis, 2014). As a result, the company failed to invest in building technology that could make it succeed. Zipcar necessary technology to connect people that wanted to use car-sharing services. Building such technology required significant investment through the early stages of companys life. However , Run after, the companys co-founder would not make this thought because the lady allocated a lot of her as well as that of her teams in designing websites and raising money to get investment.

Some staff leaders in Zipcar acquired other jobs and therefore, they could not be totally available to make use of their competence to help the firm to consider off. For example, Danielson was an architectural expert in whose services had been needed by Zipcar, although she a new full-time work at Harvard (Ancona and Reavis, 2014). Given this reality, Danielson worked at night intended for Zipcar and through weekends thus availing very little of her expertise towards the company. Mark, Chase’s buddy was likewise working with one more firm and can not get plenty of time to be employed by Zipcar.

Chase forgotten expertise and innovation once hiring since she felt that people were capable to do better beneath her management. For instance, the moment she chosen Oakley, she believed which the man could manage little details of her company. Oakley sunglasses sale was not an expert in car-sharing business seeing that he was managing bar and restaurant therefore, Chase’s go on to bring him to Zipcar showed her weakness in hiring teams and that could have contributed to the challenges that faced the corporation at its early stages.

Gender issues were seen in the hiring of workers at Zipcar. Pursuit claimed that some of the consultants that Oakley hired such as Kefer Welch were not suit to run Zipcar (Ancona and Reavis, 2014). She also believed that Oakley sunglasses misled her to hire Welch because she was a female.

The organization could not locate build a cellular technology inside the early 2000s since this sort of technology has not been available in that time. This kind of technology was needed to wide open and secure cars and also connect consumers to Zipcar’s servers. Depending on its demerits and unavailability, Chase advised that they postpone using the technology. Also, leasing cars via manufacturers was obviously a challenge to Zipcar considering that the former wasn’t able to understand the latter’s business model (Ancona and Reavis, 2014). Companies of car parking spaces were not willing to lease their very own spaces to Zipcar simply because they felt that such a move can fill all their spaces.

Getting an insurance service provider was also an issue to Zipcar seeing that such services were not used to car sharing businesses. Because of this, Chase was required to use the insurance firms that were protecting Zipcar’s rivals, Portland Car-sharing and Flexcar. According to Ancona and Reavis (2014), this move meant that the firm would not have an excellent plan since it ended up spending high rates for the cover.

Coming up with a charges model was also a obstacle for Zipcar and that required Chase to copy the types used in Canada and European countries. The style she selected involved asking membership cost and protection deposit by customers. Additional charges included per hour per mile charges and daily charges. Standard and high quality hiring providers were also categories for prices the services.

Customer issues hit Zipcar when members could not access cars that they can had booked (Ancona and Reavis, 2014). For instance, users could get frustrated when they appropriated regular automobiles but get premium vehicles that were costly. These complaints contributed to the fall of revenues pertaining to Zipcar.

Substitute Solutions

The cellular technology that Zipcar intended to build to connect cars together with the users became complicated since, by time, the world was experiencing nascent stages of technology creation. Alternatively, the company could have addressed this problem by abandoning the Zipcard and deciding on a remote system for starting the doors and starting cars owned by simply Zipcar. This kind of devices could have been given to the members and inform them to report whenever they misplace the devices pertaining to deactivation. This kind of deactivation is essential to ensure that other persons usually do not use the distant devices to access the cars. The unit should have the secret passwords pertaining to opening and locking vehicles owned by simply Zipcar.

Also, the answer to technical problems that Zipcar faced during its release could have been achieved through installing chip-readers for the cars to facilitate all their ignition. Primarily, the company designed to install card-readers that could identify Zipcards to spread out and start the cars. In this case, the proposal is usually to have the visitors for just starting the vehicle. This proposal means that the business should have kept the cars available for their users but install the software for only starting the cars.

Suggested Solutions

The experts working with Zipcar recommended that the company should have installed readers in cars to facilitate the usage of Zipcards pertaining to opening and starting just. These viewers were hardware devices although could be revised to use the program that the business was to undertake in future (Ancona and Reavis, 2014). Considering that the readers wasn’t able to recognize one of a kind numbers imprinted on the Zipcards, then the id function was scrapped as well as the readers could detect virtually any Zipcard. This kind of move was a risky decision since users could lose the playing cards and enable non-users to access Zipcar cars.


The proposal intended for alternative solutions is based on the simple fact that unique remote devices might have been cheap pertaining to Zipcar. Also, the gadgets could have easy to disable in the event the members misplaced them and reported to the firm. As a result, the products could have been protect for the two users and the company. Microchip-readers or card-readers could have offered as an alternative technology since they might use automatic-machine thought used by banks to develop. Also, these readers do not demand a sensory mechanism to discover numbers but require the members to feed the numbers to start out the cars. As a result, such potato chips could have been safeguarded since Zipcar members whom lost their Zipcards needed not to be concerned because they knew the passwords to start the car.

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