Shares of Avis Budget Group, Inc. CAR jumped nearly 7.4% following the company’s announcement 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, which will bring a completely new dimension to campus mobility by making bike sharing an accessible option at colleges and universities.
The leading and 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. As part of the deal, Zagster will arrange the Zipbike systems at participating universities and Zipcar will introduce Zipbike services across the campuses that do not have its car services.
The new collaboration will help mitigate congestion, alongside easing the parking problems across universities by eliminating the costs incurred in bringing vehicles to the campus. Notably, the new program will provide a sponsored bike-sharing service, along with car-sharing facilities, at a fraction of the current rental charges.
Also, participants can rent out a car or bike using the mobile app, which would make their lives easier. The turnkey service, Zipbike has an app-based interface, along with the first Bluetooth ring locking technology used in North American bike-share programs. Also, it encompasses hardware, software, maintenance, rider support and local promotion.
We believe that this bike-sharing program will be truly helpful for students, faculty and other groups alike. Also, Zipbike is likely to become the chief collegiate bike-sharing brand across the nation.
Notably, Avis Budget’s expansion strategy has been moving in full swing via alliances, acquisitions and joint ventures. Moreover, in an effort to enhance its global footprint, the company invests in other growing markets where car rental demand is on the rise. Some of the latest moves made in this connection include the company’s recent plans to acquire France Cars, in an attempt to expand its presence in the French market, along with partnership with Aeroflot – the largest Russian Carrier; its deal with TrueCar, and partnership with Innovative Funding Services to extend its car sales program to Oregon.
Avis Budget has a Zacks Rank #2 (Buy). Other favorably stocks in the same industry include Acacia Research Corporation ACTG, Performant Financial Corporation PFMT, both sporting a Zacks Rank #1 (Strong Buy) and RPX Corporation RPXC, with a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
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