Competition Commission Publishes Issues StatementBy Zipcar, PRNE
Thursday, September 9, 2010
Issues Statement is Standard Protocol in Acquisition Review Process
CAMBRIDGE, Massachusetts, September 10, 2010 - 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
The Competition Commission is tasked with reviewing the acquisition to
ensure it does not result in a substantial lessening of competition in the
"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.
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
Zipcar and the Zipcar logo are trademarks of Zipcar, Inc.
Media, Greg Winter, VP Communications, Zipcar, +1-617-336-4323, gwinter at zipcar.com
Tags: Cambridge, Massachusetts, September 10, United Kingdom, Zipcar