IESE Insight
Share Now: Aiming for Profitable Growth
Fecha: 11/06/2019
Autor / es: Moscoso, Philip; Soto, Manuel
Tipo de documento: Case
Colaborador / es: Cátedra Eurest de Excelencia en los Servicios
Áreas: Service and Operations Management; Strategy
Departamento: Production, Technology and Operations Management
Idiomas: Spanish / English
Año de los hechos: 2019
Área geográfica: Spain
Referencia: P-1173-E

The case describes the recent decisions taken by the management of Share Now, a leading carsharing company (the result of a merger between Car2Go and Drive Now). As part of its strategic plan for the city of Madrid, the company has decided to increase its area of coverage by 27 km2, while adding another 450 electrical cars to the fleet. Furthermore, it will implement dynamic prices that change according to demand. Share Now's main challenge is to match its customers' priorities with the company's objectives. On the one hand, the customers are interested in a broad area of coverage and very high vehicle availability. On the other hand, Share Now had to aim to grow the number of users and make the operation profitable in the medium term.

 

Objetivo pedagógico

The Share Now case can be taught effectively in any course on operations or service management. It has proven suitable for teaching in MBA, Executive MBA and Executive Education programs. The case has three key objectives: 1. To illustrate the usual trade-offs between addressing customer priorities (large coverage area, low prices, high level of car availability and high rental flexibility), and pursuing the company's objectives (high car utilization, high operating margins and growth). The illustration is done by means of reviewing the development from traditional car-rental models to point-to-point and later free-floating carsharing models 2. To explain how sound operations management can overcome these trade-offs and achieve the dual goal of customer satisfaction and profitability, particularly through the leveraging of modern information technology and self-service operations models. 3. Finally, to review the operational challenges of self-service models where a significant part of the value stream activities have been transferred to the customers.

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