Avis Budget Group's rental business in the U.S. was unexpectedly weak in early 2016. The good news is that a European car rental resurgence seems to be in the offing for the company.
The Avis Budget CFO said its core business and Zipcar haven't felt a major impact from ride-hailing apps such as Uber and Lyft. When the punch eventually comes it could be Zipcar that takes the body blow.
Sequoia Capital and other foreign investors are looking to the ride-sharing market in India as a huge market and a promising opportunity.
You gotta love it when big companies speak of "tuck-in" acquisitions. One acquisition that Avis Budget is close to nailing would be for more than $50 million, and that's larger than its acquisition of Payless last year. Small, inconsequential stuff in the world of Avis Budget, and M&A.
In certain settings and circumstances, and that includes airports and business travel usage, Zipcar is turning out to be an attractive option. Hey, even AARP members are getting on board.
Zipcar accounted for only about 3.6% of Avis Budget Group's revenue in the first quarter of 2014, but Zipcar is growing and the proverbial synergies appear to be kicking in.
Boston gets to try the new Zipcar one-way service. It will be interesting to see what the fees will be given the fact that there will be no charge for gas or parking.
You need both high density and some free parking spaces to make this work, which is why it can work in some European cities but would be a tough sell in New York.
Let's see: AvisBudget now realizes 15 months after touting all of the envisioned fleet-sharing synergies with Zipcar that there are costs involved in shuttling the vehicles back and forth between locations? Very curious. One solution is allowing Zipcar to introduce one-way rides, which is a very attractive option for customers regardless.
Sometimes acquired companies transition to the parent company and lose their whole mojo. That doesn't appear to be happening with Avis Budget and Zipcar, which is getting newer vehicles at lower cost, and is positioned to move into new geographies at a quicker pace.