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Mitch Wagner

How the Mobile Internet Puts Zipcar in the Fast Lane

Written by Mitch Wagner
10/10/2012 5 comments
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Even Zipcar, a company as young as this century, has seen its business model transformed by mobile and social media during its brief lifespan. That's how fast technology is changing business.

Founded 12 years ago, Zipcar is a new kind of car rental company, a self-described "car sharing and car club service." Rather than going to a car rental location, filling out a lot of paperwork, and renting a car, Zipcar's customers simply sign up online, reserve a car parked nearby, unlock it with an RFID, get in, and go. Customers can rent by the hour or day.

When the company started, the primary way for customers to reserve cars was through a desktop Web browser, with two-way texting supported later. Now, the primary customer portal is a mobile app. This change has happened in the last two or three years, said Scott Griffith, Zipcar CEO and chairman, speaking at the opening keynote of the MobileCon conference in San Diego on Tuesday.

"Without wireless, and wireless Internet access, our business would not exist," Griffith said.

As is often the case with digital technology changes, Zipcar finds itself in the midst of some big societal shifts, Griffith said. After a century in which car ownership was central to American life, America, and the entire developed world, is shifting to ridesharing. This includes Zipcar, competing services like Lyft and Sidecar, which allow anyone who owns a car to provide taxi services; bike rental stands in cities, particularly in Europe; and apps like Uber that make it easy and relatively inexpensive for people to call car services.

Another wave of societal change Zipcar is riding is that more people are choosing urban life over the suburbs. "They're giving up on McMansion sprawl because they want what urban life can offer," Griffith said. If all these people owned cars, society and the environment would suffer. Zipcar and other urban mobility alternatives can help.

Mobility used to mean owning a car, but that's changing. "Urban mobility is becoming an app on your iPhone or Android phone," Griffith said.

This is particularly true of Millennials, numbering 79 million in America alone, and who make up Zipcar's core customer base. Millennials require new kinds of marketing, preferring to connect with brands over social media rather than through traditional media -- another fact of business that's changed over Zipcar's life, Griffith said.

Zipcar is working on several approaches to integrate smartphone apps into its cars and services. It's currently developing a tool that allows nonmembers to sign up and rent a car in minutes, simply by sending in a photo of their driver's license. Zipcar is also working on a smartphone dock that will fit in its cars, allowing drivers to use a Zipcar app -- safely -- while driving, to download playlists, get special location-based marketing offers, or get instructions on how to operate an electric vehicle (which can be a little tricky for drivers using them for the first time).

"We call ourselves a technology company that happens to own a lot of cars," Griffith said.

Griffith took the stage by driving up to it in one of Zipcar's electric cars, a Honda Fit, which he described as ideal for an urban environment. While the driving range is about 70 miles -- relatively short when compared with a conventional car with a full tank -- it's fine for urban driving, and charges in 20 minutes with fast-charge technology.

That's a photo of Griffith taking the stage below. Yeah, he drove indoors at the San Diego convention center.

Click through the photo to open a separate page with two more images of Griffith and his slides, showing some interesting statistics on Millennials and their attitudes toward cars and the Internet.

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Karyl Scott
Thinkernetter
Wednesday October 17, 2012 6:59:10 PM
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I think psychographics, i.e., communities of shared interest, matter more as a measure of adoption, than the old science of demographics in the world of social and mobile media. 

I have a friend who is in his 50s. He gave up his car after having 3 different accidents in which moving cars slid down his hill during winter storms and smashed into his parked car. He's thrilled at the prospect of no longer having to shell out money for repairs, gas,and insurance. He's a Zipcar customer. He doesn't fit into any of the afore-mentioned demographic groups but he does share the mindset that he doesn't need to own a car to be mobile.

Another cool thing about Zipcar is its mobile app. You can use it to beep the horn of a nearby car so that you can find it. And you can use it to unlock the car. That's a great app.

Mitch Wagner
Thinkernetter
Sunday October 14, 2012 9:11:33 PM
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I just wonder if improved analytics will make age such a crude tool that it becomes a lot less useful. 

Datapoint: My 23-year-old niece is much less active on social media than I am. 

Mary Jander
Thinkernetter
Friday October 12, 2012 2:03:18 PM
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Actually, age does seem to matter in marketing. Everything matters. Everything is a potentially game-changing factor; and IMO the rise of analytics will only increase that.

Mitch Wagner
Thinkernetter
Friday October 12, 2012 12:47:04 AM
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I wonder if demographics by age group matter as much as they used to. I've seen some discussion that it doesn't, and it matches my experience. 

I find everything about Zipcar's business model appealing, and I'm not a Millennial. Alas, I don't live in an area served by Zipcar, though. 

Mary Jander
Thinkernetter
Wednesday October 10, 2012 2:16:58 PM
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Thanks for this profile, Mitch. As you note, Millennials are a powerful audience of users who require a different approach. Having to reach a demographic that prefers mobility and social media over traditional marketing methods will force many companies to change their way of working.

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