Zipcar Inc., a wholly-owned subsidiary of global vehicle rental
giant, Avis Budget Group Inc . ( CAR ), kicked off its
car sharing services at eight new airport locations across the
North American continent. With this, Zipcar's services will now be
available at eleven airport locations.
Seven of the eight newly added airports are located in the U.S.
while one is situated in Canada. The airports comprise
Hartsfield-Jackson Atlanta International Airport (ATL),
Austin-Bergstrom International Airport (AUS), Los Angeles
International Airport (LAX), Palm Beach International Airport
(PBI), Philadelphia International Airport (PHL), Phoenix Sky Harbor
International Airport (PHX), Mineta San Jose International Airport
(SJC) and Toronto Pearson International Airport (YYZ).
The company has decided to charge its members in the range of
$9.00 - $12.00 per hour or $69.00 - $89.00 on a per day basis,
depending on the location, vehicle chosen and the plan opted by the
Avis Budget, which competes with JTH Holding,
Inc . ( TAX
), acquired Zipcar in Jan 2013 for a total value of $500 million.
Following the completion of acquisition, Avis Budget has been
aggressively expanding Zipcar's services at various new locations.
Last month, Zipcar initiated its airport services in the continent
by starting its operations at three locations - Newark Liberty
(EWR), LaGuardia Airport (LGA), and John F. Kennedy International
In the United States alone, car sharing is currently a lucrative
business worth nearly $400 million and is rapidly advancing in
other parts of the world. With over 760,000 members, Zipcar enjoys
presence in 20 major cities of the U.S., Canada and Europe.
We believe that the acquisition of Zipcar has facilitated Avis
Budget in expanding its offerings from car rental to car sharing
and compete with rivals such as United Rentals
Inc. ( URI
) and Hertz Global Holdings Inc. ( HTZ ). The latter has
its own car sharing service, Hertz On Demand.
Avis Budget, which currently carries a Zacks Rank #3 (Hold),
expects the acquisition to generate an annual synergy in the range
of $50-$70 million. Zipcar is engaged in operating a car sharing
network, providing self-service vehicles to members located in
reserved parking spaces throughout the neighborhoods where they
live and work. The company's vehicles are available for use through
its reservation system accessible by phone, internet or wireless
mobile devices.AVIS BUDGET GRP (CAR): Free Stock Analysis
ReportHERTZ GLBL HLDG (HTZ): Free Stock Analysis
ReportJTH HOLDING INC (TAX): Free Stock Analysis
ReportUTD RENTALS INC (URI): Free Stock Analysis
ReportTo read this article on Zacks.com click here.Zacks Investment