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Avis Budget's Zipcar Extends Global Geographic Footprint
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Zipcar, the leading car-sharing network and subsidiary of vehicle rental & leasing services provider Avis Budget Group, Inc. (CAR - Free Report) , is expanding its geographic footprint across the globe to strengthen its leading position in the market. The company recently forayed into the Latin American market and Nordic countries by launching its services in Costa Rica and Reykjavik, Iceland, respectively.
Costa Rica Launch
At present, about 20 Zipcars are available for reservation services by the hour or by day throughout San Jose, Heredia and Alajuela. The services can be easily availed through prior booking facilities through the mobile app and can be chosen from a wide variety of car models. The reservation charges also include gas and insurance cover, making it cheap and affordable compared to high cost of car ownership.
Foray into Reykjavik
Reykjavik, the capital of Iceland, has a high level of car ownership in the world with a car for every 1.5 inhabitant of the city, per the World Health Organization’s Global Status Report on Road Safety 2015. In order to reduce pollution from such a huge number of cars, the government has set the target of becoming the world’s first carbon-neutral city by 2040 by encouraging people to use more of public transport facilities, cycling or even walking. This gives Zipcar an ideal platform to capitalize on the huge revenue generating potential of this region.
Zipcar services can be easily availed through prior booking facilities through the mobile app and can be chosen from a wide variety of car models. The reservation charges include gas and insurance cover, making it cheap and affordable compared to high cost of car ownership.
Growth Drivers
Zipcar already has significant presence in over 500 cities and towns across Europe, Asia and North America. By expanding its footprint in Costa Rica and Iceland, it has widened its global network and coverage to almost all the major regions of the world.
Avis Budget, the parent firm of Zipcar, intends to aggressively increase the number of company-operated locations in fast-growing markets. The company is particularly focused on expanding its Budget brand, taking its multi-brand strategy to the next level. We think that its fundamental drivers, such as sustained productivity growth, implementation of pricing initiatives and potential revenue-generating synergies from its various acquisitions bode well for the future.
Moving Forward
We envision strong U.S. demand trends for the company as travel volumes continue to perform well. Anticipating strong travel trends for both leisure and commercial travelers and projecting sustained expansion of these trends, we believe that Avis Budget’s various acquisitions and purchase of licensees will enhance its operational foothold in global markets. Other notable companies in the industry include Healthcare Services Group, Inc. (HCSG - Free Report) , RPX Corporation and SPS Commerce, Inc. (SPSC - Free Report)
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Image: Bigstock
Avis Budget's Zipcar Extends Global Geographic Footprint
Zipcar, the leading car-sharing network and subsidiary of vehicle rental & leasing services provider Avis Budget Group, Inc. (CAR - Free Report) , is expanding its geographic footprint across the globe to strengthen its leading position in the market. The company recently forayed into the Latin American market and Nordic countries by launching its services in Costa Rica and Reykjavik, Iceland, respectively.
Costa Rica Launch
At present, about 20 Zipcars are available for reservation services by the hour or by day throughout San Jose, Heredia and Alajuela. The services can be easily availed through prior booking facilities through the mobile app and can be chosen from a wide variety of car models. The reservation charges also include gas and insurance cover, making it cheap and affordable compared to high cost of car ownership.
Foray into Reykjavik
Reykjavik, the capital of Iceland, has a high level of car ownership in the world with a car for every 1.5 inhabitant of the city, per the World Health Organization’s Global Status Report on Road Safety 2015. In order to reduce pollution from such a huge number of cars, the government has set the target of becoming the world’s first carbon-neutral city by 2040 by encouraging people to use more of public transport facilities, cycling or even walking. This gives Zipcar an ideal platform to capitalize on the huge revenue generating potential of this region.
Zipcar services can be easily availed through prior booking facilities through the mobile app and can be chosen from a wide variety of car models. The reservation charges include gas and insurance cover, making it cheap and affordable compared to high cost of car ownership.
Growth Drivers
Zipcar already has significant presence in over 500 cities and towns across Europe, Asia and North America. By expanding its footprint in Costa Rica and Iceland, it has widened its global network and coverage to almost all the major regions of the world.
Avis Budget, the parent firm of Zipcar, intends to aggressively increase the number of company-operated locations in fast-growing markets. The company is particularly focused on expanding its Budget brand, taking its multi-brand strategy to the next level. We think that its fundamental drivers, such as sustained productivity growth, implementation of pricing initiatives and potential revenue-generating synergies from its various acquisitions bode well for the future.
Moving Forward
We envision strong U.S. demand trends for the company as travel volumes continue to perform well. Anticipating strong travel trends for both leisure and commercial travelers and projecting sustained expansion of these trends, we believe that Avis Budget’s various acquisitions and purchase of licensees will enhance its operational foothold in global markets. Other notable companies in the industry include Healthcare Services Group, Inc. (HCSG - Free Report) , RPX Corporation and SPS Commerce, Inc. (SPSC - Free Report)
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>