Question

Renting a car at the airport has, for many, become an unpleasant experience. After a long...

Renting a car at the airport has, for many, become an
unpleasant experience. After a long day (or night) of
navigating airports and flight delays, the weary traveler
must trudge or take a bus to a rental counter, wait in a line,
and finally be greeted with a selection of choices: which type of car, what insurance options,
prepaid fuel or refill on the way back to the airport, which navigation aids, and so on.
Frequent travelers can make this process less burdensome by selecting choices in advance,
but the likelihood that a chosen car model will be unavailable is still high.
Although car-sharing services, such as Zipcar, and chauffeur services, such as Lyft and
Uber, have used Internet technologies as a key element from their beginnings, most car rental
companies have made limited use of those technologies as an add-on to their core airport-
based operations. In 2012, the launch of Silvercar airport rental cars was intended to change
that. From its original operation in Austin, Silvercar had grown to 10 airport locations by
2015 with plans to add a new location every few months. Billing itself as the “first hassle-free
car rental company,” Silvercar designed its workflow to minimize the time customers would
spend dealing with the airport car rental experience.
Silvercar customers must download the company’s mobile app to their phones or tablet
devices to make a reservation. The reservation includes insurance options, but there is no
need to select a car type or option since all Silvercar vehicles are identically equipped Audi
A4 sedans that are painted silver, of course. Once they arrive at the airport, customers receive
a text that directs them to either pick up their car at the curb, delivered by a Silvercar
employee, or to a nearby lot. The app includes a scan code that unlocks the car. The app
reminds the customer when it is time to return the vehicle and provides directions through the
app and on the car’s built-in GPS system. If the customer is unable to return the car with a
full fuel tank, Silvercar will fill it at the prevailing local price plus a $5 refueling charge.
The company has established rental rates that are competitive in each location with other
companies’ rates for midsize sedans. The rentals include additional drivers and roadside
assistance. The equipment included with each car includes GPS, Wi-Fi, satellite radio, and a
toll-tracking system that charges the customer automatically for the exact amount of tolls
incurred (most rental car companies charge a daily rental fee for a toll transponder in addition
to the toll amounts).

1. Silvercar’s business process design implicitly excludes being
able to provide services to certain customers. In about 100
words, identify the characteristics of those customers and outline
the costs and benefits to Silvercar of choosing not to serve them.

Homework Answers

Answer #1

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Answer:

Silvercar has one sort of car – Audi A4. they are available in one color – silver. While some options are not any doubt good for the massive companies (SUVs, minivans, sedans, convertibles), a number of them have dozens of auto makes and models within their fleets. Silvercar has easy to know option selections on their reservation screen. There aren't rows of boxes to see for various add-ons and insurance products. Cars are standardized and renters can prefer to self-insure through their normal auto liability policy. Or Silvercar offers insurance which is clearly outlined. Simplification of options makes it easier for consumers to plan and comparison shop.

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