Scribd Logo
Upload

Welcome to Scribd!

  • 36 views

    Zipcar - Financial Workings Updated

    Uploaded by

    Dipak Nandeshwar
    Zipcar's financial model shows: - In Year 1 with 12 cars and 220 members, the average margin per car was $12,080 and per member was $608.95, with a break-even of 15 cars. - In Year 2 with 36 cars and 648 members, the average margin per car was $11,127 and per member was $601.29, with a break-even of 19 cars. - The model also shows projections for expanding to 49 cars and 882 members in Year 3, and 58 cars and 1044 members in Year 4.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Zipcar - Financial Workings Updated

    Uploaded by

    Dipak Nandeshwar
    36 views5 pages
    Zipcar's financial model shows: - In Year 1 with 12 cars and 220 members, the average margin per car was $12,080 and per member was $608.95, with a break-even of 15 cars. - In Year 2 with 36 cars and 648 members, the average margin per car was $11,127 and per member was $601.29, with a break-even of 19 cars. - The model also shows projections for expanding to 49 cars and 882 members in Year 3, and 58 cars and 1044 members in Year 4.

    Copyright

    © © All Rights Reserved

    Available Formats

    XLSX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Zipcar's financial model shows: - In Year 1 with 12 cars and 220 members, the average margin per car was $12,080 and per member was $608.95, with a break-even of 15 cars. - In Year 2 with 36 cars and 648 members, the average margin per car was $11,127 and per member was $601.29, with a break-even of 19 cars. - The model also shows projections for expanding to 49 cars and 882 members in Year 3, and 58 cars and 1044 members in Year 4.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    36 views5 pages

    Zipcar - Financial Workings Updated

    Uploaded by

    Dipak Nandeshwar
    Zipcar's financial model shows: - In Year 1 with 12 cars and 220 members, the average margin per car was $12,080 and per member was $608.95, with a break-even of 15 cars. - In Year 2 with 36 cars and 648 members, the average margin per car was $11,127 and per member was $601.29, with a break-even of 19 cars. - The model also shows projections for expanding to 49 cars and 882 members in Year 3, and 58 cars and 1044 members in Year 4.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 5

    Zipcar - financial workings:

    Year 1 Year 2 Year 3 Year 4


    Average number of members 220 648 882 1044
    Average number of cars 12 36 49 58
    Average members per car 18.33333318 18 18

    Member
    Member Lifecycle margin: Average Lifecycle Acquisition
    admin: Life #
    Margin (monthly)* Yearly Margin Cost ^
    approximate
    Planned Dec 1999 50.11 601.32 20 12,026.40 22.73
    Planned May 2000 90.26 1083.12 6.67 7,224.41 22.73
    Actual (Sep 2000) 30 360 3.91666661410 30.54393305

    For margin (*), refer sheet titled "per member"


    Average life of member (#) is based on attrition rate (5% for Dec 1999 & 15% for May 2000)
    Member acquisition cost (^) is calculated as Marketing costs divided by number of new members
    admin:
    admin:
    this is based on
    this constant
    the data in the
    factor of 18
    case that is
    0.04%
    calculated
    penetration of9.6
    as
    hours available
    the population
    per day (40%
    can be achieved
    utilization)
    in about 5 years.
    Year 5 divided by 0.53
    This is done only
    1188 hours
    for Bostonday
    per (2.9
    expected use per
    million x 0.04%)
    66 member (4 trips
    18 x 4 hours, hence
    16 hours per 30
    days) - Refer
    Net exhibits
    Lifecycle
    Margin
    12,003.67
    7,201.68
    1379.456067
    Zipcar - Per-car economics / calculations:

    Dec-99 Year 1 Year 2 Year 3 Year 4 Year 5


    Total car costs per year (Ref. Ex. 3) 7580 7580 7580 7580 7580
    Revenues per car per year
    (annual revenues / avg number of cars) 19660.66618707.36111
    Margin per car per year 12080.66611127.36111
    Total Fixed costs (annual overheads)
    Corp+Boston 180975 214652
    Break-even number of cars (Overheads/Margins) 14.98054719.29046769
    Number of cars (rounded off) 15 19

    May-00 Year 1 Year 2 Year 3 Year 4 Year 5


    Total car costs per year (Ref. Ex. 5) 8680 8680 8680 8680 8680
    Revenues per car per year
    (annual revenues / avg number of cars) 29615.66628511.91667
    Margin per car per year 20935.66619831.91667
    Total Fixed costs (annual overheads)
    Corp+Boston 180975 215532
    Break-even number of cars (Overheads/Margins) 8.644339010.86793595
    Number of cars (rounded off) 9 11
    Zipcar - Per-member economics / calculations:

    Dec-99
    Revenus per member per year
    annual fee 300
    mileage 422.4
    hourly 288
    interest 12
    Total revenues per member (annual) 1022.4
    Year 1 Year 2 Year 3 Year 4 Year 5
    Total vehicle costs (variable) - annual 90960 272880
    Vehicle costs per member per year 413.45 421.11
    Margin per member per year (Revenues - Costs) 608.95 601.29
    Margin per member (monthly) 50.75 50.11
    Total Fixed costs (annual overheads)
    Corp+Boston 180975 214652
    Break-even number of members (Overheads/Margins) 297.19410356.9864735
    Number of members (rounded off) 297 357

    May-00
    Revenus per member per year
    annual fee 75
    mileage 422.4
    hourly 1056
    interest 12
    Total revenues per member (annual) 1565.4
    Year 1 Year 2 Year 3 Year 4 Year 5
    Total vehicle costs (variable) - annual 104160 312480
    Vehicle costs per member per year 473.45 482.22
    Margin per member per year (Revenues - Costs) 1,091.95 1,083.18
    Margin per member (monthly) 91.00 90.26
    Total Fixed costs (annual overheads)
    Corp+Boston 180975 215532
    Break-even number of members (Overheads/Margins) 165.73630198.981187
    Number of members (rounded off) 166 199

    You might also like