scott griffith presentation

Entrepreneurship Institute

October 2008

To enable simple and responsible urban

living

Mission

Zipcar: What we offer

• A fleet of great makes and models

• Convenient, on-demand access

• Used for short-term trips: hours or days

• Self-service access; vehicles parked near home and work

• Simple rates includes gas, insurance, parking, cleaning and maintenance.

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A Little History . . .

• Founded in 1999. On the road since 2000.

• Mission oriented culture at launch.

• Initially angel backed. Initial phase experimenting with basic business model through 2004.

• Venture backed since 2005. Capital deployed to develop technology platform and expand operations.

• Acquired Flexcar in 2007 to expand geographic footprint and accelerate growth to scale to level needed for profitability.

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Zipcar Today

• 13 Major Cities – US, Canada, UK

• 120 Major University Operations

• 250,000 Users Attracted in 8 years

• 100,000+ Fewer Personally Owned Cars!

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The world’s largest and fastest growing car-sharing company.

Think Big, Get Big

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Our Vision for the Future

• Most residents of these cities will live within a ten minute walk of a self-service Zipcar.

• Our leading brand will be synonymous with fun, honesty, clever innovation, and social good. 

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We envision a future where car sharing members outnumber car owners in major cities around the globe.

Global Trends - Gas Prices

• The price of gas has sky-rocketed

• As a result, people are thinking differently about total cost of car ownership

• The high cost of long commutes will cause further concentration of the urban centers and increased use of transit

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Global Trends - City Livability / Affordability

• All major cities are wrestling with issues around livability…

• Congestion, lack of parking, green space …and are becoming more innovative in their solutions

• Cost of living in cities increasing dramatically

• Approximately 19% of household income spent on transportation

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Paris London

Global Trends - Sustainability

• At the same time, there are broader concerns about sustainability of the earth’s resources

• Cities, urban developers and consumers are increasingly promoting efforts to do their part

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Hearst Tower, NYC

Global Trends – Consumption Behavior Shifts

• Self service

• Pay-per-use

• Hyper local geo-based

• Share/access vs. owning

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Many urbanites can live a “low car diet”

• 50% of urban households don’t need a car everyday (US Census)

• Many pay $700+ per month to own one (AAA)

• We now have more cars (1.9) than drivers (1.8) in U.S. households (US Census)

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Confluence of Trends

Low Car Diet

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++

• Millions of car sharing users

The Emergence of a “Help Yourself Economy”

• Multi-billion dollar car sharing industry

Scott Griffith

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“I knew we were on to something in 2003 when my friends thought I was crazy to take on this new concept”

Five years of extreme growth

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200310,000 $4m

250

20085,500 250,000 $100m

Cars Members Revenue+21X +24X +26X

250

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How We Got Here

Five Strategies That Helped Us Win and Align Our Decision Making

1. Keep it Simple. Learn from Apple, Google and Ikea.

2. Stay flexible. Develop Proprietary Purpose-Built Technology.

3. Focus on getting the business model right before launching into “extreme growth” mode – don’t “Webvan”.

4. Align internal culture with our brand values.

5. Focus on replacing car ownership NOT on automating car rental.

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Simple Experience

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Join >> Prospects join at zipcar.com and choose from several plans.

Reserve >> Members reserve online, via mobile or over the phone. A wireless signal is sent to the Zipcar.

Unlock >> When members arrive at the zipcar, their zipcard identifies them and unlocks the door.

Drive! >> Gas, miles and insurance included. When done, they just return the car to it’s reserved spot and walk away.

Highly Productive Business Model

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Rev

enue

per

Veh

icle

per

Yea

r

Vehicles per Employee

10 403020

$10K

$15K

$20K

Car RentalIndustry

Zipcar- Revenue/Vehicle: $23k- Vehicles/Employee: 30

Car sharing leads to car shedding

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65% of members report selling a car or halting a purchasing decisionupon joining Zipcar.

Every Zipcar Replaces 15 – 20 Personally-owned vehicles

Zipcar is a Community!

Zipster:

a: Someone who rejects the established car owning culture; advocates extreme savings. b: One who is exceptionally aware of the latest trends and tastes; lounges in Zipgear.

[syn: Zippie, Zipper, Zip-child]

Corporate Culture

• Tie employee brand to company brand

• Focus on Shared Vision and Values (don’t wait)

• Make hard choices when cultural fit is a problem

• Geography makes it harder

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Core Values

• Be a Zipster: Developing a sense of belonging and an unparalleled user experience for our membership community

• Be the Best Supporting team member personal growth, We Can Be: impact, and excellence

• Deliver Results: Creating enduring value through profits and growth

• Keep it Simple: Winning through simplicity and continuous innovation

• Have an Impact: Changing the world through urban and environmental transformation

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Defining our culture

What’s Ahead?

• Major Metropolitan Areas Worldwide

• Millions Of Users Within 10 Years

• A Billion Dollar Company

• 2-3 Million Fewer Personally Owned Cars on the Roads!

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“We envision a future where car sharing members outnumber car owners in major cities around the globe.”

Achieving Global Domination

• Build on the first mover advantage – brand + purpose built IT and processes.

• Nurture a consistent culture in every city, everyday.

• Listen to our members.

• Deliver the best experience and most consistent service every day.

• Attract an retain the premier team with strong internal development programs.

• Stay focused – make the hard choices.

• Use information and analytics as a competitive advantage.

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How we’ll keep leading and winning

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Passion

Def: 1. a strong or extravagant fondness, enthusiasm, or desire for anything: a passion for music.

12. Archaic. the sufferings of a martyr.

Thank you

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Zipcar Selma: Someone is waiting for me! Would you like to extend your