Zipcar Inc., a wholly owned subsidiary of global vehicle
Avis Budget Group Inc
), yesterday announced expansion of its car sharing services in
the City of Sacramento, California. This marks Zipcar's 26
major metropolitan market.
The company is impressed with the growing demand for
self-service car rentals in the region. As per Zipcar's expansion
plans, the community of Sacramento will be able to avail Zipcar
services from today, with an access to nearly 40 vehicles around
different convenient locations in the city.
The company has its presence in the state since 2009, when it
first started its services on the campus of University of
California, Davis. In 2010, it expanded its business in the City
of Davis and in 2011 it started offering services to California
State University, Sacramento.
However, due to its limited access, the services were
available only to the students, faculties and staff, and in other
nearby vicinities. The recent development will provide ample
opportunity to Sacramento residents to avail Zipcar's all-purpose
car sharing services. The company will charge its members $7.50
on an hourly basis or $69.00 for 24 hours.
Avis Budget, which competes with
JTH Holding, Inc
), 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 locations.
Since the acquisition, Avis Budget has increased Zipcar's
presence from 20 to 26 major metropolitan markets.
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 now enjoys presence in 26 major cities of the U.S., Canada
We believe that the acquisition of Zipcar has facilitated Avis
Budget to extend its offerings from car rental to car sharing,
and has helped it compete better with rivals such as
United Rentals Inc.
Hertz Global Holdings Inc.
). The latter has its own car sharing service, Hertz On
Zipcar operates a car-sharing network and provides
self-service vehicles to members in and around their residences
and workplaces. The company's vehicles are available for use
through its reservation system accessible by phone, the Internet
or wireless mobile devices. Avis Budget currently carries a Zacks
Rank #3 (Hold).
AVIS BUDGET GRP (CAR): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
JTH HOLDING INC (TAX): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
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