Thursday, January 3, 2013

Tourism & Technology Thursday - Avis Purchase of Zipcar

This week Avis car rental announced that they are attempting to purchase Zipcar (for approximately $491 million).  This is an interesting deal on its face.   Avis has always been a company that was quite traditional in its approaches and had been slow to adapt to the changing market.  For instance, they did not provide short term rental services - the purchase of Zipcar will presumably change that.  On the other side, Zipcars demand was highest on weekends.  Many users would often complain that its was difficult to get a car during peak times.  The traditional car rental business however, tends to be slower on weekends.  This means that potentially with this purchase, Avis can fill those demand gaps.  The question then becomes will Avis now look at a short term rental model for tourists?  Imagine being able to travel to a resort and only have to rental a car for a half day to go on an outing.  There is great potential here.  One thing for sure, this purchase of Zipcar however, indicates that Avis is modernizing its thinking for the new economy and could perhaps be a company worth watching.

Here is a great discussion of the deal from the Motley Fool.

No comments:

Post a Comment