I always preferred ARJ; I remember it having both better compression and more useful options than ZIP.
Internet didn't existed yet in my country, took me 3 years to figure out how to open that file, and in the meantime I infected my computers multiple times with tons of viruses (seemly packing viruses in unzippers was popular... the one with most viruses was "pkunzip" or something like that)
No. You may be thinking of gzip, a spiritual successor and replacement for the Unix compress/uncompress (and even earlier pack/unpack).
But both ZIP and ARJ, and the earlier ARC, all made multiple-file archives.
Or did you mean that the compression was “carried over” from file to file inside the archive?