Credit: Shutterstock photoAvis Budget Group, Inc. 's CAR wholly owned subsidiary, Zipcar took another step on the expansion path, as it announced plans to launch its services at over 100 colleges and universities in 2015.
Zipcar is strategically focused on growing in this sector which is evident from the fact that as of today, the company has penned deals with more than 100 colleges and universities to launch there. Also, it is on track to continue introducing its services on various campuses throughout fall season.
The company dominates in the college and university car sharing market, with operations in over 475 North American campuses. Zipcar's popularity among students is also attributable to its wide range of vehicles belonging to companies like Ford Motor Co. F , Volkswagen and more, which are available on demand, at reasonable prices.
Apart from its existing locations, the new participating universities include Campbell University, Carleton University, Clemson University, Rochester Institute of Technology, Rollins College, Savannah State and Shaw University, among others.
However, the company provides its services to students aged above 18, with a clean driving record. Along with the aforementioned advantages, Zipcar contributes to the environment as it aids pollution control by reducing the need for students to own vehicles.
We think that these factors are likely to drive Zipcar toward achieving its goal of operating in more than 500 campuses by the end of this year.
Zipcar operates a car-sharing network and provides self-service vehicles to members in and around their residences and workplaces. The company's vehicles are available for use through its reservation system that is accessible by phone, the Internet or wireless mobile devices.
Zipcar was acquired by Avis Budget in Jan 2013 for a total value of $500 million. Following the acquisition, Avis Budget has been aggressively expanding Zipcar's services at various locations, as part of its strategy to invest in growing markets where car rental demand is on the rise.
Zacks Rank
Avis Budget currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the business services industry include Vectrus, Inc. VEC , with a Zacks Rank #1 (Strong Buy) and Core-Mark Holding Company, Inc. CORE , carrying a Zacks Rank #2 (Buy).
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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