This week, Avis Budget, the rental car giant, announced it is buying Zipcar, the largest car sharing service in the U.S. There are obvious benefits to both companies: Zipcar gets capital and more footprint; Avis gets expansion into a rapidly growing and youth-oriented market. It’s a classic move of an incumbent in a low-growth industry acquiring a disruptor who’s been successful enough to prove their worth. I’ve been a Zipcar fan for a long time (I’ve written about them here at HBR and in my book), so I hope this works out well for the company, but I see some major potential pitfalls as well.
The Zipcar Acquisition’s Two Potential Pitfalls
Why Avis can’t afford to fail when it comes to community and technology.
January 04, 2013
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Learn how to keep your customers—and their most important needs—front and center.