Carefree young professionals and college students throughout the U.S. became concerned over the news that car rental giant Avis planned to acquire the quirky Zipcar because of the changes it might bring to the company. Reuters had conducted an informal poll of 9 antitrust experts. Most of them didn’t like the deal privately for the fear that it will lose a liveup upstart.
The poll concluded that eight of the nine expect U.S. regulators to approve the deal. Fans flock to Zipcar due to its new, young approach to car rental. Even young professionals who wanted to live without a car or those who are broke can rent a car for $11.25 an hour, frequently without leaving their neighborhood. It has provided convenience and attentiveness to numerous customers.
Let’s take for example a Toyota Tacoma pickup truck in Berkeley, California, that is referred to as the “Thaddeus." On Jan. 2, Avis Budget Group Inc said that it would pay about $500 million in cash, a 49% premium, for Zipcar Inc. It means that it has the top spot in the ever-expanding market.
Avis is confident that with Zipcar, it will be able to beat rivals Hertz Global Holdings Inc and Enterprise Holdings Inc. Zipcar, which has been in operations for 12 years, charges higher than the conventional rental car companies for longer rentals. However, the members get a high level of convenience. Zipcar has more than 760,000 members in 37 U.S. states.