AAA (American Automobile Association) www.aaa.com

Goals

To obtain a deep dive of AAA, including the company's history, notable events, interesting facts, value proposition, and business model.

Early Findings

HISTORY OF AAA

  • In the early 1900s, when automobiles were still new in the United States, motor clubs began to pop up throughout the country. In 1902, a group of nine such clubs joined together to create the American Automobile Association (AAA).
  • AAA was officially formed in Chicago on March 4, 1902.
  • At it's founding, AAA had fewer than 1,500 members. That number has since grown to more than 58 million.
  • According to the organization's website, "from its inception, AAA has dedicated itself to the future of transportation through support of safe, efficient highways and a multi-modal transportation system that is accessible and affordable to everyone".
  • One of the organization's first goals was to have American roads redesigned for the use of cars since, in the past, they'd been built with the use of horse-and-buggies in mind. "By 1916, AAA had won a major battle in its campaign for better roads when the principle of federal aid to highways was initiated."
  • Around the same time, in 1915, AAA became the first company "to introduce a service for stranded motorists". This has since become the company's most popular and well-known benefit.
  • In 1907, just five years after the organization was founded, AAA began to provide travel services to their members. Specifically, the company "established a bureau of touring information to supply members with all available data on roads, hotels, service facilities and motor vehicle laws". As part of this initiative, the company also began producing maps geared towards drivers, as opposed to bicyclists (which was the primary type of map produced at the time).
  • The company's c-suite executives include Marshall Doney (President and CEO), David Polansky (Senior Vice President, Administration and Chief Financial Officer), Kathleen Bower (Senior Vice President, Public Affairs & International Relations), Margaret Diego Pittelkow (Vice President), Scott Denman (Vice President, Financial Services and Discounts & Rewards), Ramon Millan (Vice President and Chief Technology Officer), and Scott Parker (Vice President, Strategic Partnership Development).

SERVICES

  • AAA offers a number of services beyond their most well-known roadside assistance program, such as battery service, auto repair, insurance, and travel planning.
  • New members can join AAA as "primary" members for a cost of between $48 and $96 annually. New "associate members" pay between $21 and $51 annually.
  • Members can also receive a number of discounts and rewards from partner companies and organizations such as Sprint, Universal Resorts, Hertz, and Penske Truck Rental.

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