UPDATE: Avis Budget Group and I.D. Systems Sign Exclusive Agreement to Deploy New Generation of Wireless Vehicle Rental Technology
Avis Budget Group, Inc. (Nasdaq: CAR) and I.D. Systems, Inc. (Nasdaq: IDSY) announced earlier that they have executed an agreement to deploy I.D. Systems' proprietary wireless vehicle management systems in Avis Budget's vehicle rental fleet. The agreement follows an extensive pilot program in which the technology was successfully deployed in both traditional airport locations and corporate campuses.
The first phase of expanded system deployment, which will put I.D. Systems' technology into more than 25,000 Avis Budget vehicles and facilities in portions of the United States and Canada, is valued at $14 million over five years. The exclusive agreement also provides Avis Budget an option to expand system deployment across its global fleet of vehicles which, if fully exercised, is valued at substantially more.
"This agreement is the culmination of a ten-year technology collaboration between I.D. Systems and Avis Budget," said Jeffrey Jagid, Chairman and Chief Executive Officer of I.D. Systems. "We believe our wireless rental fleet management technology has the potential to revolutionize the car rental industry and are proud to be partnering with Avis Budget, a global leader in this industry."
I.D. Systems' wireless in-vehicle management system permits two-way data communications between a vehicle and various car rental operating systems. Combined with Avis Budget's existing technologies, I.D. Systems' services will enable Avis Budget to rent and check-in vehicles virtually, all with the use of a smartphone. In addition, the system has the potential to drive further productivity by automating the vehicle data collection process and streamlining billing.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.