This report formally clears Zipcar Inc's completed acquisition of rival car club Streetcar Limited. The CC has concluded that other companies are likely to enter and expand into this rapidly growing market, and that such competition will counter the danger of the merged company being able to raise prices or worsen its services to customers. The acquisition, which was completed in April 2010, brings together Streetcar, the largest car club in London, and Zipcar, the second largest. Car club members pay an annual membership fee and are able to hire cars by the hour picking up the vehicle from convenient nearby locations, using the flexibility offered by smart card technology and online and mobile booking tools. The Office of Fair Trading (OFT) referred the case to the CC in August for the CC to decide whether the acquisition may be expected to result in a substantial lessening of competition within any market or markets in the UK, including the supply of car club services in London.Further we noted that the Transport for London (TfL) survey suggested that most people joining a car club were not regular car users before joining and further reduced their car use after they joined a car club. 6.42 We noted our surveyanbsp;...
|Title||:||Zipcar and Streetcar|
|Author||:||Great Britain. Competition Commission|
|Publisher||:||The Stationery Office - 2010|