Competition Commission Publishes Issues Statement

CAMBRIDGE, Mass., Sept. 10 /PRNewswire/ -- Today, the Competition Commission (CC) published an issues statement in its review of the acquisition of Streetcar by Zipcar. The issues statement is standard protocol in the CC review process of reviewing UK-based mergers or acquisitions.

The Competition Commission is tasked with reviewing the acquisition to ensure it does not result in a substantial lessening of competition in the UK.

"We are fully cooperating with the Competition Commission and are confident that once their review is complete they will conclude that UK consumers stand to gain significant benefits as a result of this acquisition -- including access to more cars in more locations, a wider selection of vehicle makes and models, a larger network of cities, and improved service levels," said Scott Griffith, Zipcar CEO. Additionally, UK residents will continue to experience reduced CO2 emissions, and reduced road congestion, as according to Frost & Sullivan, every shared vehicle removes 15 personally owned vehicles from the road.

"Car sharing faces stiff competition from traditional car rental and car ownership, which exerts strong market forces on pricing and demands high service levels," Griffith added. "Car club members regularly choose among car clubs, traditional car rental, taxis, public transport and car ownership when making their transportation decisions on the basis of price, convenience and quality of service. As a result, if we were to raise prices or drop service levels, consumers might seek alternative transportation options."

As noted by the CC in its release, the issues statement follows the first stages of gathering information, views and evidence and identifies clearly, for all interested parties, the specific questions and areas the inquiry is examining. The issues statement identifies specific questions that the CC will be reviewing, and forms the basis for hearings with Zipcar, Streetcar and other interested parties. It does not imply that the CC has yet identified any competition concerns.

Zipcar will issue additional statements, as appropriate, to keep our members informed throughout the CC review process.

About Zipcar

Zipcar operates in urban areas and college campuses throughout the United States, Canada and the United Kingdom. Zipcar offers more than 30 makes and models of self-service vehicles by the hour or day to residents and businesses looking for an alternative to the high costs and hassles of owning a car.

Zipcar and the Zipcar logo are trademarks of Zipcar, Inc.

SOURCE Zipcar

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