Car-Sharing Goes Mainstream as Avis Buys Zipcar


  • Zipcar Logo

    Zipcar Logo

    Car rental company Avis will buy Zipcar for $500 million, the two companies announced on Wednesday. | January 02, 2013

Just the Facts:
  • Car-rental company Avis will buy Zipcar in a move that is expected to further mainstream car sharing throughout the U.S.
  • Avis said on Wednesday it is buying Zipcar for approximately $500 million.
  • "We see car sharing as highly complementary to traditional car rental, with rapid growth potential," said Ronald L. Nelson, Avis Budget Group chairman and CEO, in a statement.

PARSIPPANY, New Jersey — Car-rental company Avis will buy Zipcar in a move that is expected to further mainstream car sharing throughout the U.S.

Avis said on Wednesday it is buying Zipcar for approximately $500 million.

"We see car sharing as highly complementary to traditional car rental, with rapid growth potential," said Ronald L. Nelson, Avis Budget Group chairman and CEO, in a statement.

Avis said it intends to "provide more options for Zipsters in more places." Zipsters are Zipcar's 760,000 members. The move is expected to help Zipcar meet high demand on weekends.

Zipcar said the deal enables it to "accelerate the revolution we began in personal mobility."

Following the acquisition, Zipcar will operate as a subsidiary of Avis Budget Group.

Zipcar pioneered car-sharing services in the U.S. Consumers can rent the cars at an hourly or daily rate and park in reserved spots.

The deal is expected to close in the spring, according to the two companies.

Edmunds says: This alliance between a traditional car-rental company and a popular car-sharing service will be a major benefit to consumers.

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