A merger of two car club companies

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Car Rental News - 01/11/2007


Zipcar and Flexcar are joining forces to offer more competative car club services.

In order to stay competitive in a market which is expanding rapidly, two car club companies, Zipcar and Flexcar are combining forces in a new merger.

The merger is actually more of an acquisition, with Zipcar purchasing Flexcar. The new company will keep the Zipcar name and Scott Griffith, the Zipcar chairman and chief executive will remain in charge of all operations.

According to Griffith, not only with the merger help them stay competitive, it will also help Zipcar expand into markets in America, Canada and Europe.

"This merger will be a classic example of the whole being greater than the sum of its parts," he said. "We believe as a combined company, we will be more effective in making car sharing a mainstream form of transportation."

Mark Norman, the former chief executive at Flexcar, will become president and COO of Zipcar once the merger is complete. He expects the transition to be relatively easy as the two companies were only in competition in a few areas like San Francisco and Washington, D.C.

Car clubs allow members to reserve a car online or by phone and pick it up at a designated location, usually using a smartcard. Car clubs are becoming more and more popular as they are often more user-friendly than renting a car and more environmentally friendly than owning one.

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