Avis Budget Group Inc.’s CAR wholly owned subsidiary, Zipcar, has entered into a partnership agreement with France’s national railway operator, SNCF, in order to provide the French market with progressive mobility solutions.
With this partnership, both Zipcar members and SNCF frequent travelers can avail the facility of completing their onward journey in a Zipcar vehicle on arriving at their destination station. Zipcar expects to launch this service in all major French cities over summer this year, with a target of starting operations at about 25 stations.
SNCF frequent travelers can access the Zipcar service through a mobile application called “IDpass,” which will allow them to book numerous transport options while travelling in order to smoothly complete their journey. Further, this will enable Zipcar members to conveniently reach out to Zipcar vehicles all over France.
Zipcar operates a car-sharing network and provides self-service vehicles to members in and around their residences and workplaces. After being founded in 2000 in the U.S., the company’s first venture into France was the launch of its services in Paris in Sep 2014.
Coming back to the news, the aforementioned partnership is a significant achievement in Zipcar’s mission to shape the future of urban mobility in various countries across the globe. This step not only highlights Zipcar’s commitment toward expansion in France but also the effort to widen its global presence.
Avis Budget acquired Zipcar in Jan 2013 for a total value of $500 million, which positioned it to better compete with rivals like Hertz Global Holdings Inc. HTZ. Following the acquisition, Avis Budget has been aggressively expanding Zipcar’s services at various locations.
With the launch of its services in Turkey earlier this month, Zipcar has now expanded to 7 nations, including Austria, Canada, France, Spain, Turkey, the United Kingdom and the United States, 470 towns and cities, 400 universities and more than 40 airports across the globe.
Avis Budget currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the business services industry include Sajan Inc. SAJA, with a Zacks Rank #1 (Strong Buy) and ExamWorks Group Inc. EXAM, with Zacks Rank #2 (Buy).
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