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CAR-SHARING SERVICES ON BOTH COASTS, MERGE

ZIPCAR BACKED BY BENCHMARK, GREYLOCK AND GLOBESPAN AND FLEXCAR BACKED BY STEVE CASE’S REVOLUTION, MERGE

flexcar2.jpgVenture-backed Zipcar, whose by-the-hour car-sharing service is used by college students and urban dwellers, is merging with Flexcar, a cross-continent rival service funded by Steve Case’s Revolution, the companies said Wednesday.

In a conference call, Scott Griffith, chairman and chief executive of the combined company, said the top post-merger shareholders will be venture capital funders Benchmark Capital, Greylock Partners, Globespan Capital Partners, and Revolution.

Financial terms of the deal were not disclosed. Jonathan Seelig, a managing director at Boston-based Globespan, said in a telephone interview that bigger is better in the car-share business. “This business is better at scale,” he said. “I love that I can use cars in San Francisco, where I travel frequently and Seattle, where I also spend some time. It’s about more people, more cars, more places.”

The only markets where the companies compete head-to-head are San Francisco and Washington, D.C. Cambridge, Massachusetts-based Zipcar operates in markets including New York City, Boston, Toronto, and London. Flexcar operates in Los Angeles, San Diego, Atlanta, Philadelphia, and Seattle, where its headquarters were located.

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