Business Model of Lease Car Industry for Service Innovation

[[abstract]]The purpose of this research was to construct the new business models of rental car industry. The study uses service innovation construct including ‘new service concept’, ‘new client interface’, ’new service delivery system’ and ‘technological options’, and combined Osterwalder & Pigneur’s(2010) business models to construct the service innovation business models of rental car industry. The results of the study are as follows: First, the service innovation business models of rental cars can be distinguished between the “long lease” and the “short lease”, two types of market segments. Second, the “new service concept” of the service innovation focuses on the business model elements of the “customer relationship”. Third, the “new client Interface” of the service innovation focuses on the business model elements of the “access”. Fourth, the “new service delivery system” of the service innovation focuses on the business model elements of the “key activities”. Fifth, the “technique options” of the service innovation focuses on the business model elements of the “key resources”. The study actually interviews rental car experts and operators, and the results are analyzed according to the service innovation of the rental cars. The study proposed that, “the operators should customize different business models according to the customers’ service need of the leasing time”. For the long-term rental service, the operators should use “rental, not sale” to construct the service innovation business models. For the short-term rental service, the operators should be based on the “sharing economy” to construct the service innovation business models. The study can be regarded as the future development suggestion of the service innovation of rental cars, and as a follow-up discussion