Car rental giant, Avis, plans to acquire ZipCar, a prominent car-sharing service.
Avis to Acquire ZipCar: A Potential Disruptor Becomes an Established Player
In a significant move for the car-sharing industry, Avis, a US-owned car rental giant, has announced its intention to acquire ZipCar. The deal, if accepted by ZipCar's shareholders, would mark a potential disruptor becoming an established player.
ZipCar, founded in 2000 and credited with creating the car-sharing market, has been a pioneer in the realm of collaborative consumption. Known for its innovative approach, ZipCar has consistently grown its revenue by around 15% to over $700 million in the last few quarters.
However, current stock prices for ZipCar are not available due to the company's status as a private entity not publicly traded. Avis' offer of $12.25 per share represents a 49% premium on ZipCar's share price on Monday. This offer could be Avis' intention to remove a potential competitor from the market.
ZipCar's financial year net income, after three quarters, stands at $650,000. This figure underscores the company's financial stability and growth potential.
In recent years, ZipCar has expanded its reach by acquiring regional car-sharing services such as StreetCar in the UK and Avancar in Spain. This strategic growth has solidified ZipCar's position as a global leader in car-sharing.
The acquisition story of ZipCar is not a new one. In April 2011, the company launched its initial public offering, with its stock in high demand, rising 66% on launch. However, since then, ZipCar's share price has fallen by around 66%. The acquisition by Avis could potentially reverse this trend.
The acquisition of ZipCar by Avis is expected to reshape the car-sharing industry. As the deal progresses, the industry will watch closely to see how this merger of a disruptor and an established player unfolds.
