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.

 

 

Comment On This Story

Name:  
Email:  
Comment: (Max. 10000 characters)  
Please leave blank:
* Please note that every comment is moderated.

 
 
 
 
 

Newsletter: Sign up to receive latest news, articles, and much more.

Read the latest

Auto Focus Blog: A blog covering fleets, auto rental and the business of cars

What I Learned at the 2014 Car Rental Show

If the Car Rental Show is an indicator of the health of the industry, the North American market is doing well — while the "growth markets" are really taking off.

Remembering Elaine Litwer

On the fifth anniversary of Elaine Litwer’s death, I’m brought back to the work she did to repeal vicarious liability. But it’s also caused me to reflect on the mentors in my life.

6 Market Predictors for 2014

In their fourth quarter conference calls, Avis Budget Group and Hertz gave an outlook on fleet costs, the used car market, fleet optimization strategies and potential acquisitions. Hertz shed light on the fallout from that excess fleet.

Job Finder: Access Top Talent. Fill Key Positions.