in the past 10 years, Avis has spent well over $20M piloting virtual car rental technology called Avis On Location from IDSY. They have 30,000 cars deployed with the technology. They said on many conference calls and presentations that the technology works. It is in fact, the best and cheapest technology for virtual car rental (car sharing) available. Avis even took a 9% stake in IDSY with a 1M share purchase at $4.60 and owns another 500k warrants at $10. IDSY can not sell this technology to anyone else until a non-compete with Avis expires in July.
In the last investor presentation to Wall St, Avis said the this:
Our Avis On-Location service offering is being piloted at corporate campuses right now. And we’re learning a lot from those pilots, including the fact that we have technology that works and before we expand it significantly we want to make sure we have a business model that works as well.
Let me get this straight. The company spends over $20M on the technology over 10 years and is just now trying to figure out the business model? FIRE!! READY!! AIM!!! Thank goodness these guys aren't in charge of the military.
Either deploy the technology or let IDSY sell it to your competitors who are chomping at the bit to deploy it. And whoever screwed up not having a business model ready should be fired.
and what happens to the CAPEX in the budget for 2013 that Avis has set aside for the virtual car rental procurement? They said they had $45M in CAPEX for 2013. The virtual car rental was a crucial piece of all 4 pillars of their business model. Is the entire business model on hold while they figure this out?