Avis is bringing a new company on-board, as it bought Zipcar for $500 million. Zipcar has a unique spin on the rental car business, and fans of the company hope that Avis will retain what makes Zipcar unique. On Jan. 13 Reuters shared the details on how Zipcar was bought for $500 million.
Zipcar has a unique niche, in that they will rent cars out for as little as a one-hour period of time. The company has been a big hit for those who don't own cars and it has become quite popular in college towns or big cities where owning a car tends to be difficult. Renters don't have to hit the airport to pick up the rental, as the cars have spots throughout town. Rentals typically start at $11.25 an hour.
Avis expects to close the deal in early 2013, and some users worry that what makes the unique company stand out will be diluted when it becomes just another Avis business unit. There is also word that the deal may be closely reviewed by the Federal Trade Commission as a possible antitrust issue, but people will have to stay tuned for now.
Have you been following the news that Zipcar was bought for $500 million? Do you see the unique company as a fit for Avis, or do you think it will lose its edge?