Friday, November 12, 2010

How Mobile Apps Help the Car-Rental Business

The big issue, for mobile applications or any other uses for mobile devices in other areas of business, is the value proposition. Using a mobile, instead of some other mechanism, has to offer enough value to displace an existing behavior.

It appears mobile apps now offer value both for end users of the Zipcar service, and Zipcar itself.

Launched two years ago, Zipcar's app for iPhone and Android devices has been downloaded by 400,000 people, who use it to locate the nearest available car. That has made it much easier for customers to find cars wherever and whenever they want one.

Now the company has expanded to 55 cities and 225 college campuses in the U.S., Canada, and the United Kingdom.

By letting customers book cars spontaneously with their mobile phones instead of making reservations ahead of time on PCs, Zipcar has found a much easier way to manage its challenging logistics.

Unlike a big car-rental company, Zipcar arranges many short-term rentals in widely distributed locations.

Customers must return the car to its home spot, which is often on a side street. You can see why the ability to return a vehicle using nothing more than a mobile device is useful. A mobile can find an available car closest to where a user is, and allows a user to easily figure out where to leave the car once the rental period is finished.

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