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.We found that, in most London boroughs and particularly in inner London boroughs, - on-street parking was scarce. ... parking spaces for car clubs, 13 operated a single-operator policy which meant that they allocated the totality of their on-street parking spaces to one operator2 (see Appendix J). ... We noted that many boroughs allocated on-street spaces on the basis of a competitive tender, although theanbsp;...
|Title||:||Zipcar and Streetcar|
|Author||:||Great Britain. Competition Commission|
|Publisher||:||The Stationery Office - 2010|