Car2go: Individual Urban Mobility and the Sharing Economy
(10 pages of text)
Set in 2013, this case describes the expansion of car2go, a popular car sharing service developed by Daimler AG. The case addresses the changing commuting preferences among urban residents, the evolution of urban transportation and new service developments in the automotive products market. Unlike traditional models of car sharing or renting, which required advance bookings, hourly billing and returns to the originating location, car2go’s business model offered minute-based rates and a free-floating selection of cars that allowed customers to pick up or leave vehicles wherever they liked.
This case can be taught to MBA students or executives in courses such as marketing, operations management, supply chain design, business strategy or consumer behaviour. Specific teaching objectives for this case include the following:
- To understand the commercial aspect of sharable goods and services.
- To examine the concept of a service offering in the product market as a profit-maximizing strategy.
- To analyze risks for innovative services.
- To demonstrate the efficiency of community-oriented branding.
Canada, Large, 2013
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