1. Describe the value creation idea underlying the Zipcar new venture.

Recognition of unmet need. Robin Chase discovered that there is a big hole in the short-
term, on-demand car access market. There are approximately 15, people !ho do not o!n a
care !ith an "nmet need #or reg"lar or ad hoc private car access. There are people !ho, #or
di##erent reasons, don$t have their o!n car %high monthly expenses, ins"##icient end expensive
o##-street parking, and other problems o# car o!nership& b"t #rom time to time re'"ire "se o# a
private car to go to the grocery store, visit their #riends o"t o# to!n, or #or other reasons. ("blic
transportation, taxi and rental car services don$t meet their needs.
People are ready to pay #or some sol"tion that provides the convenience o# having a car b"t
takes a!ay the hassle o# o!nership and cost to maintain a car.
The Solution that Chase and )nt*e +anielson came "p !ith !as to provide a convenient and
cost saving service to the "sers. Car sharing !o"ld permit people to get a car !hen they need it
and pay *"st #or the time or mileage !hen they are "sing it. The "sers co"ld reserve a car
online or ad hoc. ,t !o"ld be easy #or s"bscribers to pick "p a car #rom parking spaces in
neighborhoods. -ipcar$s service has comparable prices to a car rental b"t it !as no need to
rent a car #or an entire day.