Streetcar, the UK’s largest car-sharing service, has been bought by rival Zipcar in a deal reported to be worth $50m.
Zipcar, the largest global car-sharing company, hopes to expand its reach in the UK and Europe through the deal, which will see both companies operating under the Zipcar brand.
Streetcar was founded by
Brett Akker and Andrew Valentine in 2004. Since then it has retained its market leading position in the UK, amassing more than 75,000 members and 1,300 vehicles in London, Brighton, Cambridge, Southampton, Guildford, Maidstone, Oxford and Bristol. The founders will retain senior positions within the business.
Akker said the deal had come at the “perfect time” and made sense for both parties.
“We’ve been discussing the deal over the past few months,” he told Growing Business.
“The potential to expand within the UK and across Europe is exactly the right time for both businesses and it allows us both to do it quicker than we would have done as separate entities.”
American firm Zipcar was founded in 2000 by Massachusetts residents Robin Chase and Antje Danielson. It arrived in London in 2006, but until now only had a couple of hundred cars in the road and 12,000 UK members.
“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.”
Streetcar members will have access to Zipcar’s global network of vehicles located in cities in the United States and Canada.
“We are thrilled to be part of Zipcar,” said 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.”
The deal will enable both companies to leverage each other’s investments in technology and branding. Zipcar’s purpose-built technology platform will boost scalability, while Streetcar’s strong regional presence provides a solid geographical platform for expansion across Europe, Zipcar said.
Akker added: “The team will remain in place. We’ll be looking to integrate the two businesses as quickly as we can over the coming months. Members will get the best of both.
“Once integration takes place members will get the fantastic service they’re used to at the moment along with a global brand name and cutting edge technology.”
© Crimson Business Ltd. 2010