Hertz to Acquire Australian Vehicle-Sharing Company
Hertz Corp. is going Down Under for its latest business venture with plans to acquire an Australian vehicle-sharing company.
Executives revealed Wednesday they have signed an agreement for Hertz to secure Flexicar, a provider headquartered in Melbourne, Australia. They indicated Flexicar provides vehicle-sharing services to members throughout Melbourne and Sydney.
The company plans to integrate Flexicar into the Connect by Hertz vehicle sharing program following the closing, which is scheduled for Dec. 1.
Founded in 2005, Flexicar began under the assumption that Australia’s inner city residents needed an affordable and sustainable alternative to vehicle ownership. The company operates 90 vehicles and has approximately 2,500 members throughout Melbourne and Sydney.
While Flexicar is scheduled to operate under the Connect by Hertz brand eventually, officials said Flexicar founder Monique Conheady will retain her leadership position as director of Australian car sharing operations.
Hertz contends the acquisition should benefit Flexicar members by offering sophisticated in-vehicle technology, as well as greater access to units and locations. The deal means Flexicar members can use Connect services in Berlin, London, Madrid, New York and Paris.
“Connect by Hertz is an integral part of Hertz’s overall strategy to provide total mobility solutions to our customers,” stated Hertz chairman and chief executive officer Mark Frissora.
“The Flexicar acquisition, Connect’s first foray into the Australian market, will further strengthen our global car sharing footprint, enabling us to reach a greater audience and to provide our worldwide members access to car sharing vehicles in a sixth country,” Frissora continued.
Robert Stuart, senior vice president of global sales for Hertz, elaborated about why this deal could pay a great return for the company.
“There are three common factors that drive consumers to join a car sharing club: cost savings, convenience and its environmental benefits,” Stuart emphasized.
“The Australian car sharing market closely mirrors the markets in which Connect serves, including residential, college campuses, and the business community,” he continued. “With a growing membership base and strong car utilization rate, Flexicar provides Connect with immediate access to these key markets.”
Meanwhile, Conheady offered her commentary, as well. .
“We’re excited that we will be joining the Connect by Hertz family,” Conheady noted.
“Hertz’s infrastructure will enable Flexicar to tap into a wider array of resources, including its state-of-the-art technology, while providing members with greater products and services to enhance their overall experience,” she concluded.