Avis Budget Group, Inc.’s (CAR - Analyst Report) expansion strategy has been in full swing via alliances, acquisitions and joint ventures. Additionally, we laud Avis’ focus on expanding its Budget brand, taking its multi-brand strategy to the next level.
Recently, Avis Budget announced that its car-sharing division, Zipcar has inked a deal with Zagster to introduce Zipbike. This will be the first national sponsored bike-share program designed for universities. The program will bring about a complete new dimension to campus mobility by making bike sharing an accessible option at colleges and universities.
The leading and the fastest-growing bike-share provider in the U.S., Zagster, currently operates 140 bike-sharing programs, out of which roughly two dozen work on college campuses.
We believe that this bike-sharing program will be truly helpful for students, faculty and other groups alike. Additionally, Zipbike is likely to become the chief collegiate bike-sharing brand across the nation.
Moreover, in a bid to enhance its global footprint, the company invests in other growing markets where car rental demand is on the rise. Some of the strategic initiatives in this connection include the company’s recent plans to acquire France Cars to expand its presence in the French market, partnering with Aeroflot – the largest Russian Carrier; its deal with TrueCar, and its partnership with Innovative Funding Services to extend its car sales program to Oregon.
Looking at the recent series of events, it seems that Avis Budget intends to aggressively increase the number of company-operated locations in fast-growing markets. The company has been focused on expanding its Budget brand, taking its multi-brand strategy to the next level. In line with this strategy, the company is in the process of acquiring its Budget Car Rental licensees at various locations.
Stocks to Consider
Stocks worth considering in the business service sector include InnerWorkings Inc. (INWK - Snapshot Report) , Viad Corp (VVI - Snapshot Report) and Xerox Corporation (XRX - Analyst Report) .
InnerWorkings has surpassed the Zacks Consensus Estimate in the trailing four quarters, with an average earnings beat of 77.9%.
Viad shares have gained more than 17% in the past three months.
Xerox long-term earnings growth rate is pegged at 10%.
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