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Hungry Hungry Hertz Gobbles Up Dollar and Thrifty Rental Car

August 30, 2012 at 7:04 AM | by | ()

Big news in the world of rental cars this week, as Hertz is getting ready to gobble up a pair of smaller rental car companies. Hertz is joining forces with Dollar and Thrifty, and by that we mean that they’re taking over ownership of each of them.

Hertz is going to hand over quite a chunk of change, as it sounds like the deal is worth roughly $2.3 billion. As solid as things sound right now there’s always a bit of a chance that the situation could change, since the group responsible for both Dollar and Thrifty has around 30 days to entertain other offers. This means that someone like Avis could cash in their pennies and try to make their own billion dollar buyout proposal.

If all goes through as planned, this would put roughly 95% of the rental car market in the hands of just three companies in the nifty fifty. Enterprise—they own National and Alamo too—will lead the pack, but Hertz and Avis won’t be far behind in second and third place, respectively.

We aren’t too concerned that this will affect folks looking pick up a car hire, but obviously this does somewhat reduce competition. However, there’s still plenty of smaller—and often cheaper—companies forcing the average cost down, and of course we can’t forget about car share services that continue to pop up here, most recently with Hertz On Demand. We’ll see how everything shakes out, but just keep an eye on your rental car rates in the near future and we'll do the same.

[Photo: Atomic Taco]

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