The Associated Press is reporting that Avis Budget Group Inc. will pay $12.25 per share, a 49 percent premium to Zipcar’s closing price last Friday, totaling $491.2 million to expand their offerings into car sharing services.
By combining with Zipcar, we will significantly increase our growth potential, both in the United States and internationally, and will position our company to better serve a greater variety of consumer and commercial transportation needs,” said Avis Chairman and CEO Ronald Nelson. Bringing the Avis fleet into play will help Zipcar meet high demand on weekends, Avis said, when most people make a run to the grocery store or run other errands. It will also help Avis compete with Hertz Global Holdings Inc., which has its own car sharing service, Hertz on Demand.
Here in New York City, Zipcar is generally cheaper for hourly rentals, though my daily corporate Avis rate soundly beats any daily or weekly rates from Zipcar. No word yet on fleet harmonization or whether Zipcar rentals will qualify for airline mileage accumulation. Presently only select foreign carriers allow renters to earn miles at non-airport locations in the NYC metro area.