The UK’s largest car club, Streetcar, has sold to its US rival, Zipcar.
Zipcar, the world’s largest car sharing service, is acquiring
Streetcar in a £32 million deal. The two companies said the acquisition would lay the foundations for the combined operations to become the leading
car club operator in Europe and a global
car sharing network.
Car clubs offer an alternative to residents and
businesses that don't want to own or run their own vehicles, thereby helping to reduce
carbon emissions and
road congestion.
Streetcar, which launched in 2004, has around 40,000 members in the UK and around 1,400 cars across eight cities, including London, Brighton, Cambridge, Southampton, Guildford, Maidstone, Oxford and, most recently, Bristol. It is a pay-as-you-go car club, which charges its members to use its vehicles for between 30 minutes and six months.
Zipcar has 360,000 members mostly in the US and Canada and since 2009, has had a foothold in Europe through a car club in Spain.
Zipcar chairman and ceo, Scott Griffith, said the company’s take over of Streetcar would give it "a very strong base from which to expand to additional European markets."
"The more than 400,000 members of both companies will benefit from more cars, more convenience and enhanced
technology," he said.
Streetcar founders Andrew Valentine and Brett Akker, who will reportedly net £11 million from the sale, have retained a stake in the new business and will take up key positions within it.
"We are thrilled to be part of Zipcar," said Andrew Valentine, co-founder of Streetcar. "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."
Last year
, Zipcar launched a scheme in London with Westminster City Council for users to hire all-electric and hybrid vehicles.
Zipcar reported £84 million in revenues last year, while Streetcar reportedly made £16 million.
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Related links:
www.streetcar.com
www.zipcar.com