Zipcar Inc., a wholly-owned subsidiary of global vehicle
Avis Budget Group Inc
), yesterday announced the expansion of its car sharing services
in the City of Lakes, Minneapolis. This implies that Zipcar's
services will be now available in 21 major metropolitan
Though the company has its presence in the city since 2005,
its services were available only to the students and staff of
University of Minnesota, and in other nearby vicinities. However,
the recent development will provide ample opportunities to
Minneapolis inhabitants to avail Zipcar's all-purpose car sharing
services. The company will charge its members $8.75 on an hourly
basis or $72.00 for 24 hours.
Currently, this Avis Budget subsidiary intends to commence its
operations in the city by positioning 40 vehicles at the most
suitable locations including Dinkytown, Downtown, Loring Park,
Northeast, North Loop and Seven Corners. Additionally, the
company is in talks with City of Minneapolis officials to set up
on-street parking spots. It also intends to expand its operations
in other major areas of the city as well as in St. Paul.
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 new
locations. Earlier this month, Avis Budget expanded Zipcar's
airport services in the North American continent by starting its
operations at 8 new locations.
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 21 major cities of the U.S., Canada and
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
Avis Budget, which currently carries a Zacks Rank #2 (Buy),
expects the acquisition to generate an annual synergy of $50-70
million. Zipcar is engaged in operating a car sharing network and
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, the Internet or wireless
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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