Avis Budget buys Zipcar - Car Rental News
Avis Budget buys Zipcar
Car Rental News - 07/01/2013
Car rental giant Avis Budget has announced that it has reached a del to buy US-based Zipcar.
Car rental giant Avis Budget has announced that it has entered a deal to buy US-based Zipcar.
Officials from the firm said last week that the agreement, which will see the traditional car hire firm expand its business into the growing car share market, is worth some USD $491.2 million (£305 million).
Zipcar has been in business for 12 years and has quickly grown into a massive enterprise with more than 750,000 members.
Chairman and Chief executive of Avis Budget Group Ronald Nelson said in a statement that the acquisition would allow his company to maximise growth potential in the US as well as in international markets. He added that the car-sharing programme would position the company to provide a wider range of solutions for commercial and individual mobility needs.
Experts say the move is a significant step in Avis’ efforts to compete with Hertz Global Holdings – the second largest car rental firm in the US market which has recently launched its own sharing scheme Hertz on Demand.
Through car sharing programmes, members can make use of thousands of positioned vehicles in major markets, enabling them to forego traditional time-consuming rental formalities.