Avis’ Shock Split With Vendor Revives Credit’s Big Software Fear

It in many ways embodies investors’ worst fears of how a SaaSpocalypse might play out.

Verra Mobility Corp., which runs road-safety cameras for cities and back-end technology for rental-car companies, was blindsided this week by Avis Budget Group Inc.’s decision not to renew its contract — severing a partnership that made up more than 10% of its annual revenue.

Avis told prospective debt investors its reason for doing so, according to people familiar with the matter: The rental-car company could likely replace Verra’s services with in-house technology, given advances in the space.

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