Zipcar set to purchase Flexcar

Zipcar, the popular car sharing company, is planning on buying its main rival, Flexcar, both of which are best known for catering to environmentally conscious urbanites who rent cars on an hourly basis when needed, in order to avoid owning a personal automobile. The merger of these two car sharing companies is largely aimed at more effectively competing with car hire giants, like Hertz and Thrifty, both of which have now entered the hourly rental market. Many feared that Zipcar and Flexcar could not face the stiff competition from much larger companies if they did not merge, or find another way to cooperate. It is now expected that Flexcar’s purchase will be finalized later this week.

According to the Associated Press, Flexcar’s brand name and its reservation system will be gradually phased out, and the new entity will simply be known as Zipcar. The company has not yet released precise figures as to how much money this deal is worth. Scott Griffith, who currently serves as the CEO of Zipcar will assume responsibility for the newly merged company, while Flexcar’s outgoing CEO, Mark Norman, will be named the entity’s president.

Zipcar is the largest car sharing company in the

United States. The firm offers a fleet of 3,500 cars in some of the largest cities in the US, Canada and in parts of

Western Europe. Zipcar is also prominently represented on a number of university campuses where car sharing has become popular with many students—who would not have adequate funds to maintain a car of their own—as well as with college staff members. Zipcar’s membership currently stands at over 120,000.

www.zipcar.com