After more than 20 years of managing the Budget car and van rental franchise in South Africa, Bidvest will cut ties with the Avis Budget Group (ABG), as of February 28. The vehicle hire business will be rebranded and trade as Bidvest Car Rental. The existing infrastructure, management and team will remain unaffected following this decision.

Bidvest’s agreement with ABG, which is headquartered in the US, expired on January 23 and a separation agreement has been concluded to ensure a smooth transition through to the end of February.  

Bidvest South Africa’s Chief Executive, Lindsay Ralphs, said: “The separation discussions have followed in the spirit of our long-standing relationship and both parties are fully committed to ensuring no disruption to customers and partners alike. Over the coming month, Bidvest will embark on the launch of Bidvest Car Rental, a truly and ‘Proudly South African’ domestic car and van rental business.”

This means there was now an opportunity for another candidate to take up the Budget licence and brand, a source told Tourism Update.

The Avis Budget Group is a global provider of vehicle rental services, both through its Avis and Budget brands. It owns and operates most Avis and Budget car-rental offices in North America, Europe and Australia, and operates primarily through licensees in other parts of the world.