The Cost Of Zipcar's Financial Plan

Although Zipcar’s financial plan was not able to accurately predict every outcome that occurred, the company has managed to perform successfully thus far, though overall, there is room for improvement. When comparing the May 2000 revised financial plan with the September operating data, there are several favourable variances that can be seen. Firstly, Chase estimated attrition to be 15%, however during the first five months of operations, Zipcar’s attrition has remained at 6% or lower. It was also estimated that the company would end year one with 440 members, but based on September’s operating data, Zipcar is currently on track to exceed 2,500 members. Another major difference is Zipcar’s usage estimates. September’s operating data shows that

market, as well as explain the convenience, cost-savings, and environmental impact of the Zipcar venture. Giving a basic explanation of the technology platform would generate interest and excitement as investors would be intrigued by this new idea that allows the company to stand out from many of the rest. She should briefly go over how the on-demand, conveniently located, and easily accessible cars around the city would save individuals time and provide them with hassle-free transportation. Chase should also compare the costs of Zipcar with alternatives such as owning a car, using a taxi, or using public transportation as this will successfully convey the implied cost savings of using Zipcar. Moreover, it is important for the company to be marketed as environmentally friendly as there are numbers to prove it and the environment is truly a hot topic these days. Chase should communicate that for every car shared, the need for approximately 7.5 individually owned cars would be eliminated. Lastly, and perhaps most importantly, Chase should pitch herself to the Springboard forum, because if investors do not believe in her, then it is highly doubtful that they will believe in the Zipcar venture. Chase is extremely driven and enthusiastic and she truly believes in this idea. She