Avis Budget Group, Inc.
) wholly owned subsidiary, Zipcar, has recently collaborated with
the city of Palo Alto to launch its car sharing services in the
city. Further, the company plans to introduce 10 Zipcars in the
city's four parking facilities located within the confines of the
Downtown Parking Assessment District.
Members in the Palo Alto city are charged at rates which start from
$8.50 per hour and $74 per day. Moreover, the company provides an
extensive range of models such as Volkswagen Passat, fuel-friendly
Toyota Prius Hybrid, and Hyundai Elantra, to name a few. With this
cost-friendly mode of transport, Palo Alto residents will be able
to lessen traffic, limit carbon emissions and address parking
Interestingly, Zipcar already owns over 50 cars in the Stanford
University campus, which is adjacent to the city. Notably, the
company has gained significant popularity since it forayed into
Stanford in 2011, which is evident from its solid membership at the
campus. Meanwhile, its entry into Palo Alto is expected to widen
members' reach, enhance customer convenience and add to the
company's customer base.
Apart from Stanford, Zipcar has over 1,400 vehicles in the greater
Additionally, Zipcar has a vehicle for Business program, which
offers driving rates at discounted prices during weekdays. This
benefits the city's local business employees with reduce parking
needs and cost savings as well as protects the environment by
cutting down carbon emission levels.
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, Internet or apps on
Androids and Apple Inc.'s (
Avis Budget, sporting a Zacks Rank #1 (Strong Buy), acquired Zipcar
in Jan 2013 for a total value of $500 million. Following the
completion of the acquisition, Avis Budget has been aggressively
expanding Zipcar's services at various locations. Since the
takeover, Avis Budget has expanded Zipcar's presence from 20 to 26
major metropolitan markets.
Most recently, Zipcar declared the addition of a 2014 Honda Fit
battery electric vehicle (EV) at The University of California,
Davis' (UC Davis), West Village. West Village is the biggest zero
net energy region in the U.S., which has been structured in such a
way that its energy consumption and generation are equal during a
year. The introduction of this all-electric vehicle is likely to
take West Village and UC Davis closer to this target.
Considering these factors, we believe that the acquisition of
Zipcar has facilitated Avis Budget to diversify its offerings from
car rental to car sharing, and compete better with rivals such as
United Rentals Inc. (
) and Hertz Global Holdings Inc. (
) - which has its own car sharing service, Hertz On Demand.
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
APPLE INC (AAPL): Free Stock Analysis Report
AVIS BUDGET GRP (CAR): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
UTD RENTALS INC (URI): Free Stock Analysis
To read this article on Zacks.com click here.