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Zipcar, Flexcar to merge car sharing businessesFor the past two years, the Bay Area has been the most competitive market in the nascent but booming business of car sharing, with three companies charging residents to drive any of the hundreds of cars scattered around San Francisco and the East Bay.But the competitive landscape is changing. Zipcar and Flexcar, the two largest and only nationwide car sharing companies, announced Tuesday night that they are merging. The new company will operate under the Zipcar brand and use its technology.Car sharing businesses charge membership fees for round-the-clock access to fleets of vehicles spread across metropolitan areas. Members pay hourly, and sometimes per-mile, rates when they drive the cars. Gasoline and insurance are covered in the price.While the effects of the merger are uncertain, company officials, industry experts and members say the move could help expand the practice of car sharing.Scott Griffith, Zipcar's chief executive officer, hailed the merger as good for car sharing. Since the two firms have little overlap in locations, they said, the combined company will give members better access to more vehicles in more cities, and allow additional investments in technology, vehicles and expansion."This merger is a classical example of the whole being larger than the sum of its parts," he said.
