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ZipCar buys up rival StreetCar for £32m
18 Nov 2010Car club ZipCar has been given the go-ahead to buy its rival StreetCar, giving members in London access to more than 1,700 cars and vans.
Zipcar — which has 360,000 members across the US and Europe — is expected to ditch the Streetcar branding.
Although car clubs — where members pay an annual membership fee to hire cars by the hour — are still relatively new phenomenon in the UK, experts expect the industry to increase eight-fold over the next decade, to hit 800,000 members.
The founders of Streetcar are set to collect around £11 million from the £32 million sale of the firm to Zipcar.
Reader views (8)
With no competition in the UK, Zipcar is now gradually increasing its rates. If no other company enters the market shouldn't existing members take action? (I certainly won't be renewing my membership). Shouldn't there be an online petition?
- Neil B, London, 19/01/2012 22:21
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now, with a monopoly in the UK, Zipcar is gradually raising its rates in an attempt to increase profits. If no company is able to offer competition then action must be taken by current members (I will not renew my membership if this carries on). Shouldn't there be an online petition? Who will start this?
- Neil B, London, 19/01/2012 22:13
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I left Streetcar about 2 years ago because the service even then IMHO was pants.
Mark, sad to hear that it has not improved at Streetcar.
With Zipcar, although you are dealing with agents in the US they have a much better attitude, and in my experience bend over backwards to help you.
- Mike, South London, UK, 19/11/2010 21:58
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Interestingly if you look at Zipcar's London vehicles, they're cheaper than Streetcar and offer more free miles.
I disagree with Nigel, I had a car that I gave up after joining Streetcar - The cost to insure, tax, service, MOT, repair my car each year was about £1200 - I spend approximately £50 a month on Streetcar tops.
It's not for everyone, but as I commute in to London on the tube, it's pointless for me to have a car sitting on the drive all week doing nothing, when I can book the one around the corner whenever I need it for £5 an hour.
- Kev, London, 18/11/2010 19:35
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They'll have to get their prices down, not up, if they want to grow their business. I own a car that I mostly use at week-ends (and not every week-end). I've done the sums. It's somewhat cheaper to tax, maintain, insure etc. my own car, than to hire a Streetcar whenever I'd want one. Also a lot more convenient.
- Nigel, London, 18/11/2010 17:25
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Bad news all round. Zipcar and Streetcar own 90% of the vehicles within walking distance of my flat.
With no effective competition following the merger of these companies, I can see prices going up, and the number of vehicles available near me falling.
- Mark, Vauxhall, 18/11/2010 14:22
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Glad to hear this got the go-ahead.
I regularly use Streetcar and Streetvan - they're a great way to avoid the costly bills of owning a car, hopefully Zipcar can create some economies of scale and help drive down prices.
With the added investment maybe we'll see some more vehicles on the road too, to ease the winter supply/demand issues that seem to crop up when it gets cold and dark.
- Kevin, Bow, London, 18/11/2010 13:52
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Very bad news for Streetcar customers, the customer service has become increasingly impersonal in recent months, plus access to cars at the weekend is now virtually impossible without pre-booking early in the week in some areas.
Can't see how Zipcar will make either of these problems any better.
- Neil, London, United Kingdom, 18/11/2010 13:33
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