Antitrust Issues

[FailingEnterpriseAdmin]

Hello FailingEnterprise Community,

Antitrust regulators are going to be looking at this deal and passing judgement on it. Perhaps we'd like to contibute to the process and express our opinions?

What are your thoughts on these questions?

1. Who are Enterprise's competitors? The rental car business is segmented into several sub-markets. Is this deal a consolidation of three of the major players in the non-corporate renter market, thus greatly reducing competition in that market, or is it one big market and Hertz and Avis are still major competitors?

2. Is Enterprise leveraging their near monopoly status in the replacement car market to gain market share in the airport market? Are they going to use profits from their core business to subsidize a price war at the airports and buy market share?

3. Will Enterprise, National and Alamo coordinate on pricing to prevent price competition among themselves?

4. Will consumers in the end be worse off than they are now?

What are your thoughts on these questions?

Originally Posted by FailingEnterpriseAdmin

Hello FailingEnterprise Community,

Antitrust regulators are going to be looking at this deal and passing judgement on it. Perhaps we'd like to contibute to the process and express our opinions?

What are your thoughts on these questions?

1. Who are Enterprise's competitors? The rental car business is segmented into several sub-markets. Is this deal a consolidation of three of the major players in the non-corporate renter market, thus greatly reducing competition in that market, or is it one big market and Hertz and Avis are still major competitors?

2. Is Enterprise leveraging their near monopoly status in the replacement car market to gain market share in the airport market? Are they going to use profits from their core business to subsidize a price war at the airports and buy market share?

3. Will Enterprise, National and Alamo coordinate on pricing to prevent price competition among themselves?

4. Will consumers in the end be worse off than they are now?

What are your thoughts on these questions?

You spend way too much of your life thinking about Enterprise. You devoted a substantial part of your life to trying to bring down ERAC and for a long time disillusioned yourself that it was actually working. Now even you admit that ERAC is so dominant that it might be moving towards a monopoly. You make me sad.

Hertz is the 10 ton gorilla at the airports. Add Avis and you probably have 60-70% market share.

Erac will gain by adding National's access and ability to serve National Accounts. Also ERAC will instantly be able to upgrade facilities at Airports nationwide that would have otherwise taken years. This is due to the fact that the airport bid process "locks" things for the term of the agreement whether you like it or not. In the home city market ERAC can open alternative locations etc, but at the airport the phrase "location, location, location" is as true as it gets.

Consumers will not be worse off. Service will actually be better. As ERAC consolidates the brand at the airport a new player will emerge to bid for the counter that has now opened up. Most likely a payless, thrifty etc depending on who is already there.

The key will be integration. ERAC is spotty on execution as is with "green" managers in abundance. This acquisition will only add to the complexity.

Originally Posted by FailingEnterpriseAdmin

Hello FailingEnterprise Community,

Antitrust regulators are going to be looking at this deal and passing judgement on it. Perhaps we'd like to contibute to the process and express our opinions?

What are your thoughts on these questions?

1. Who are Enterprise's competitors? The rental car business is segmented into several sub-markets. Is this deal a consolidation of three of the major players in the non-corporate renter market, thus greatly reducing competition in that market, or is it one big market and Hertz and Avis are still major competitors?

2. Is Enterprise leveraging their near monopoly status in the replacement car market to gain market share in the airport market? Are they going to use profits from their core business to subsidize a price war at the airports and buy market share?

3. Will Enterprise, National and Alamo coordinate on pricing to prevent price competition among themselves?

4. Will consumers in the end be worse off than they are now?

What are your thoughts on these questions?

Who is "WE" Is it a bunch of anonymous posters who mostly post about who they would like to fuck? I mean you really are insane. Are you still holding your breath by the phone waiting for that call from the government to ask for your help in brining ERAC down. Do you think anybody from Anti trust board is going to read this site and say..hmm well a poster called "?????s father" thinks this deal violates some rules and wait so does the poster "I hate ERAC" better nix the deal. Look at those 2006 numbers you have posted on the web-site realize those will be exceeded for 07 add this purchase and one might think this site has done more to help ERAC then hurt it over the last few years. HA

yeah well done ????? give yourself a pat on the back

[batserve]

I don't think they will have any problem clearly the regulator scrutiny. This acquisition is interesting. It comes as a surprise because Vanguard has been talking to DTG, and Enterprise did a good job of keeping it quiet. Not yet sure of the implications.


1. Any company that rents cars could be considered a potential competitor. It just seems than none have the ability to really compete with them on a national scale in the replacement market. I think some of the local markets have operators who are more successful at competing with them than others, but overall, it's no contest. Interestingly, Vanguard has not embarked on the local market expansion in the way that Hertz and Avis have. Hertz and Avis dominate the corporate account market, at least at airports, but Enterprise just bought the third largest corporate customer company and the key to the door.

2. I don't know if they leveraged it, probably have the cash, and I doubt they will find it necessary to engage in a price war.

3. I think they each have price points that are acceptable to the consumer of each brand, and the company will price accordingly. When all is said and done, I could see Alamo vanish.

4. Wait and see on the effect on consumers. Generally, prices are trending up and the capital expenditures for automotive equipment continues to rise. It will be interesting to see if they change the Vanguard fleet to the risk model at Enterprise or if they continue to use the manufacturer programs in place there.