Zipcar Acquisition of Streetcar Referred to Competition Commission

Car sharing service provider Zipcar recently revealed that the U.K.'s Office of Fair Trading had decided to refer the company's acquisition of Streetcar to the Competition Commission for additional scrutiny. Zipcar acquired Streetcar in April, and the merger was supposed to offer consumers access to more cars, more locations both within London and in North America.

The two companies would have also offered more convenience and enhanced technology while reducing car ownership and congestion.

Such a combination would also present a real alternative to auto manufacturers, car sharing providers and car rental companies, a number of whom have already entered or expressed interest in entering car sharing.

"Naturally, we're disappointed by the decision of the OFT, which imposes a delay on a transaction from which consumers and the environment stand to benefit enormously," said Scott Griffith, Chairman and CEO of Zipcar. "We intend to cooperate fully with the Competition Commission and we are confident that once a more detailed review is undertaken, the Commission will conclude that the acquisition does not give rise to a substantial lessening of competition. We will maintain our service levels and car availability as we always have, because our members are our top priority."

Back in April, Zipcar revealed it also has plans of making further investments in technology and branding that will allow to not only improve the car sharing experience for members located across the UK, but also create a large scale car sharing network across Europe.

The companies would operate under the Zipcar brand, with Streetcar founders and executives Andrew Valentine and Brett Akker retaining their leadership positions with Zipcar.