Date of Award
Moore School of Business
Director of Thesis
As a result of declining consumer spending, more companies have been “servicizing” their business models, moving away from the typical product-centric model and offering their goods as services. This trend has been especially popular in the transportation industry, with cars and scooters now being rented by the minute, with no transfer of ownership. Apps like Uber and Lyft have disrupted the taxi service industry, effectively side-stepping expensive regulations due to their “car-sharing” business model. While this money-saving distinction has led to their success, it can also lead to their downfall, as they face many legal battles specific to ride-sharing services. Similar companies, like Zagster and Zipcar, allow customers to pick-up a bike or a car near them and pay per hour. The success of these companies depends on their efficient inventory management and the ability to meet fluctuating demand. Following a similar business model, but in a market of its own, Zapp Ride Share has emerged on the USC college campus, to allow students to rent scooters and pay by the minute. After testing the market with a company known as Scootaway, the CEO, Frank Scozzafava, fixed the major operational issues and relaunched this concept under a new name. Although the scooterrental idea has been met with success so far, it still faces challenges similar to those of car-sharing and bike-sharing companies. Threats to the company’s operations include legal issues, matching supply with demand, and competing for market share.
Cavanagh, Kelly, "Operational Challenges in Servicizing the Transportation Industry" (2017). Senior Theses. 140.