Streetcar and Zipcar join forces to create large-scale car sharing network
The acquisition, valued at around $50 million, will give Zipcar a much larger presence in the UK. Streetcar currently operates in over 1,100 locations across eight UK cities and has over 75,000 members. Zipcar has 360,000 members in Spain and the US.
The two companies say that the deal will benefit Streetcar and Zipcar members by offering more vehicles, a greater variety of hybrid and other green cars, and more locations. Streetcar members will have access to Zipcar's global network of vehicles located in cities in the United States and Canada.
'In the near term, the more than 400,000 members of both companies will benefit from more cars, more convenience and enhanced technology,' said Scott Griffith, Chairman and CEO of Zipcar. 'In the longer term, when considered along with our investment in the largest car sharing company in Spain in late 2009, this transaction gives us a very strong base from which to expand to additional European markets.'
As well as offering member benefits, the two firms say that the deal will enable them to leverage efficiencies in technology and branding. In the coming months, the companies will begin the process of transitioning the Streetcar brand, parking locations, technology and operations to the Zipcar brand and platform.
The companies will ultimately operate under the Zipcar brand, with Streetcar founders and executives Andrew Valentine and Brett Akker retaining their leadership positions with Zipcar.
'We are thrilled to be part of Zipcar,' said Andrew Valentine. 'We founded Streetcar with a vision of being the leading car club operator in Europe, and joining forces with Zipcar will help us realise that goal much more quickly. We look forward to continuing to deliver great service to our members.'For more of the latest industry news, click here.