Enterprise Holdings Acquires PhillyCarShare

Enterprise Holdings has announced that it is acquiring the business of PhillyCarShare (PCS), a nonprofit organization serving more than 13,000 members.

PhillyCarShare will operate as a natural extension of the Enterprise home-city business model, which already includes WeCar by Enterprise car-sharing, plus a wide variety of car leasing, vanpooling and hourly rental programs throughout the country, the company said in a statement.

"Our extensive home-city network puts us in a unique position in the car rental industry," stated Greg Stubblefield, executive vice president and chief strategy officer for Enterprise Holdings. Enterprise Rent-A-Car operates not only as a key provider for insurance replacement, weekend getaways and special occasions, but also as a transportation alternative for those who rely on mass transit during the week. In addition, many consumers who simply cannot afford to purchase or maintain a vehicle on their own often depend on local car rental and take advantage of Enterprise's "everyday low price," including popular weekend rates starting at $9.99 per day (the rate includes 100 free miles a day).

"We look forward to working with the PCS team, so that we can share best practices, invest in new local fleet and provide the Philadelphia region as many transportation options as possible," Stubblefield added. "Just as we did with our acquisition of National and Alamo four years ago, we are determined to take the time necessary to listen and learn, and to get the integration process right."

The acquisition was expected to close Aug. 10. Financial terms of the transaction will not be disclosed. PhillyCarShare will operate as a for-profit service, and the brand name will be maintained during the integration process. Almost all PCS staff members have been offered positions.

According to a report in the Philadelpha Inquirer, the sale comes as PhillyCarShare faces about $2.7 million in back taxes and penalties. A 2010 audit by the Revenue Department found that PhillyCarShare did not charge its members a $2 car-rental tax on some types of transactions over several years.

Approvals of the sale from the Pennsylvania Office of Attorney General and the state Department of Revenue will limit Enterprise's future financial liability to PhillyCarShare's past tax issues, according to the report.

 

 

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