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- Porsche Drive (B): Vehicle Subscription Strategy
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Car2go Montreal: The Electrification Opportunity
In 2015, the City of Montreal issued an international request for interest for the implementation of an all-electric carsharing service. This situation represented both a threat and an opportunity for car2go, a carsharing service company and a subsidiary of Daimler that had successfully operated 29 carsharing systems across Europe and North America. Would it be worthwhile for car2go to respond to the request for interest and, in doing so, adapt its successful business model to fit the needs of the local market? If so, what would be the implications for the overall competitiveness of the firm? Would it be worth the cost to develop a new four-seat vehicle to meet the City of Montreal’s requirements? -
Bixi Goes to New York
In May 2011, the Public Bike System Company, based in Montreal, Canada, was preparing to answer a request for proposal by New York City to create a financially self-sustaining public bike-sharing system. Three years earlier, the company, owned by the Montreal Transit Authority, had created Bixi, a service that made bikes available to members through docking stations, powered by solar energy, spread across the city. Although its financial structure was still unproven, it was a promising solution that aimed to revolutionize urban transportation. In partnership with other private bike-sharing organizations, the company had successfully expanded to Minneapolis-St. Paul and Washington D.C. but had experienced problems with its implementations in Melbourne, London and Boston. Furthermore, the system in Montreal could not provide evidence of profitability, forcing the city government to step in by guaranteeing loans and providing additional cash flow. It also did not have a clear business plan as to how, when and where its international expansion should take place. Now, news of its problems in Montreal had made headlines in New York, putting the future of its expansion ambitions in doubt.