Zipcar Vs Uber - a Case Study

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Professor: Jay Mulk

MKTG6232 18774 - Case 3 Zipcar and UBER –It is about sharing

Hatem Ben Aghil

Political factors: ‘Uber’ endless arguments:

Uber has faced argument. In the development stage of Uber business, Uber did not have high regulations. It was difficult to point the problem if an accidents happened, who is fault the driver or Uber? Uber faced more issues worldwide for instance in Netherlands, for example, the government ruled against the Uber drivers because the drivers do not have taxi licenses. In France, the government filed a charge against the Uber advertisement. The case is different with Zipcar. The Zipcar users do not own the cars then they are not alone in facing their problems.  Zipcar does not consider itself as a vehicle rental business. In its place, it is selling a lifestyle. “It’s not about cars,” says CEO Griffith, “it’s about urban life. We’re creating a lifestyle brand that happens to have a lot of cars.”

Economic factors:

The market that Uber uses is the sharing business. It means that the company based on sharing physical resources. Uber hire drivers to drive customers and drive them to a specific location.  Uber has a competitive advantage in transportation business which is easy to schedule and cheaper than regular taxis. Uber operates its business in 72 countries around the world, and it has more than 30 million users monthly. People are wondering if the Uber career is the right path for their future career, the question is that, is the Uber an excellent opportunity to grow and have enough money to cover the cost of living? Or maybe Uber use the people properties to its advantage. Uber has brought in new platform of transportation business with fantastic idea to earn money by just creating a smartphone application to manage its business.

Zipcar is a sharing business with the different concept, to be part of the company it has to be a member by pay about $60 for the annual membership to receive the Zip-card that allows unlocking any Zipcar vehicle in the world. Also, the member can reserve the car by the smartphone app or by calling by phone. The Zipcar business provides hassle-free to own a car. Also, the gas and insurance are including the car rental too. The concept of Zipcar is providing transportation for people and help them to save money and cut down the number of cars on the road. The Zipcar business platform helps to keep the environment by cut the cars on the road that means fewer accidents and less pollution.

Social factors: Easy availability  

  Uber clients were enjoying east to access platform. It is just by using the smartphone app by choose the time and schedule the drive that is all. The lower prices that Uber provides for its clients is seducing them to have Uber service. Many clients were enjoying their rides with Uber service and they talking about their experience in the social media word of mouth spread very quickly. But with the increasing of using Uber service, the price starts increasing in the big city such as New York and San Francisco. The increasing of price for Uber drivers advantage but is not welcome to the clients.  Zipcar shared on its website the main points on sharing cars such as the people who they want to save money by buying a car, or people who they do not use car frequently. This kind of service provides the convenience to move around the city and also reserve a gas and environmental friendly.

Technological factors:

Uber spread in the social media quickly. People were sharing their experience stories through the social media. Uber at the specific time become the story of the day. The App is essential to Uber. Uber clients make an appointment through the smartphone app and pay through the app too. Zipcar is using the membership business model to have more clients enjoying the company through the smartphone app and by the phone call.  

Legal factors: Banning

Uber faces criticism, attempted bans and bans in many countries around the world. Uber has to follow the copyrights law, labor safety laws, and technical usage laws. Zipcar has many issues with insurance companies. The Zipcar just like Uber, they both, based on rideshare business.