Car rental Market Research Reports Consulting | Car rental Business Review : Ken Research

According to the Car rental Market Research Reports, it is stated that there are several key players which are recently functioning in this market by folding up their sleeves for attaining the highest market growth as it is one of the richest market in the present era with the transformation in the living style and development in the economies. Not only has this, in the recent trend, with the presence of effective technologies the driers connect their smart phones with the vehicles so that they can unlock and lock their car without the help of keys and it decreased the fear of locking outside with the loss of keys. Moreover, the technological apps is also playing prominent role in the developed regions as one technology facilitate the facility of car pooling to the user which is very much affordable.

The car rental market was not as innovated and profitable in the past there were no certified mechanics in this industry but in the present era the market is very much profitable and developed as in the recent trend the market is having knowledgeable mechanics that are certified by the government. In addition, the market of car rental in the present era having various innovated technologies which proved to be beneficial for the key player for attaining the huge market share across the globe more effectively and in the least time. Whereas, many of the prominent key players for leading the market growth more actively and positively by investing in the development of the technology. Furthermore, for attaining the highest market share in the market, the regions are functioning more actively and in a more auspicious manner which further make the market more competitive and lead the market growth in the forecasted period.

The internet of things and technological apps help the user in locating the car and know the cause of delay. Furthermore, IoT is beneficial for monitoring the level of fuel and speedometer. Whereas, the technological apps, the client can maintain the accounts and can account for a schedule reservation. Therefore, in the coming years it is expected that the market of car rental will grow more actively over the decades with the effective support of new entrants in this market.

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Increasing Strength With The Technological Development In The Car Rental Market Outlook : Ken Research

Car rental industry is providing so many solutions to the customers for making the market more profitable. The numerous car rental companies are providing mobile tablet technology that digitizes rental transactions and eliminates administrative bottlenecks at rental counters. However unsurprisingly, this industry is a multibillion dollar industry across the globe as the car rental industry have realized that they are now not only operating to serve access to care but rather have to focus on mobility solutions. The industry of car rental is segmented on the basis of types of vehicles, location, regions, market size and several others. According to the report analysis, ‘car rental industry research and market reports’ states that the growing digitalization, advancement in the technologies, industrialization has fueling the landscape of the car rental industry and the users are currently looking for fulfilling variety of needs besides than just fulfilling one. With the further development in the technology the car rental industry is expected to grow more significantly as the increase in mobility, companies have come up with car pooling and car sharing mechanism which makes the market more effective and competitive.

In a research, it is observed that the car rental industry has immense growth in the near future and with the more development in the mobility the car rental industry is consisting a combination of pickup and drop location, rental period, car type and even refueling option. Moreover, the global car rental industry is anticipated to grow at a cagr of 13.7% and reach an approximate market value of usd 127.0 billion in the near future. Moreover, the industry of car rental is proving a dynamic shift and more companies can offer variety of applications to address their corporate clients need. According to the report analysis, ‘market research reports for car rental’ states that the global rental industry has been encountering a major transformation over the last few years and the positive impact of information technology in the industry has driven the transformation of the car rental facilities. The major operators are significantly increasing with the undergoing mergers and acquisitions for acquiring a handsome amount of share across the globe in the near future. Moreover, with the growing gdp rates and increase in the levels of income across the globe are also expected to drive the car rental market more positively in the forecasted period. Therefore, in the near future with the emerging economies the mobility in the car rental industry is growing which will make the market more aggressive.

The north america region is most prominent region in this market and with north america, the europe is constituted around 62.4% share across the globe. Moreover, the north america is expected to remain most effective region alone across the globe and acquire highest share in forecasted period around the globe. The key player of asia pacific region is investing more in developing the mobility of various technology which result in dominating the handsome amount of share in the near future across the globe and the technological advancements coupled with enlarging of leading car rental companies in the under develop regions, such as latin america.

The hertz corporation, enterprise holdings inc., ai futtaim group, europcar group s.a., avis budget group, inc., and others are the major key payers across the globe. Moreover, the enterprise is the major leading player across the globe and make the market more competitive and effective which further lead to market growth and will welcome the new investors which will support the market financially. Therefore, in the coming years it is expected that the car rental industry will grow more significantly over the decades with the more development in the technology will lead to mobility in the car rental industry.

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Car rental Market Research Report : Ken Research

A car rental is a service that rents cars for short periods of time, usually ranging from a few hours to a few weeks. These services normally function in a system of pick-up or drop-off points and provide an extensive range of vehicles. Internet access, advanced technology, increase in Smartphone’s and real-time tracking details are enhancing customers to opt for car rentals. The rental cars are categorized into economy, compact, compact premium, premium and luxury. Consumers are free to choose any car of their choice based on availability of such car at the time of reservation. Before reservation consumer first contact the company for the desire vehicle than supply some information such as; dates of rental and type of car and after this consumer need a valid driving license.

In car rental, there are three phases involved; the first phase involves the grouping of car rental locations into pools which allowing car rental locations within a pool to share a fleet of vehicles. In the second phase involves the types & quantities of vehicle. The final phase involves address of car pick-up and drop-off location.

Car rental services provide advantages like are freedom of movement, comfort, affordability and low cost travelling etc. Some car rental companies provide a GPS navigation system in the car with extra price. There are also some challenges involved in car rental; one of the main challenges is to provide superior customer services like a lack of information on additional payments and excess amount, to waiting for hours in line to get the booked car. The source of this challenge is the associated with the sensitivity of travelers related to the travel experience quality, followed by the increased importance of customer reviews. 

There are some software’s for car rental which are: TSD RENTAL, Rental Car Manager, PROVAB, Ibexrentacar, Navotar, Schedulebull, Ecalypse Car, ExpressGo, HireMate, HQ Rental Software, AFG Rent a Car, ASAP Rent Software and Book Rides Online etc. The software have assisted on the parameters like booking easy cab, car rental tracking, inventory management, driver management, real-time reporting, driver-passenger communication, revenue management, e-wallets and security intuitive interface, mobile optimization, fleet management, paperless transactions and location mapping.

In car rental, some new technologies have implemented such as green vehicle, electric vehicle, blackbox and biometrics. Green vehicle is the most cost-effective way to improve energy efficiency and reduce carbon emissions e.g. hybrid car. An electric vehicle is self-contained with a battery, solar panels or an electric generator to convert fuel to electricity. Black box records the location of the final moment using GPS technology. Biometric vehicle access system in cars, matches various behavioral or physiological characteristics to automate access monitoring system.

The impact of information technology has driven the revolution of the car rental services. The growing trend of by the Internet use on the customized travels and bookings will push the use of technology in the industry. This technology up gradations will process the safe, quick, reliable, and easy for consumers. The service providers are also coming up with the marketing strategies for a car rental business by online and offline. Blogs, social media, sponsored content, targeted advertisements; online discounts are involved in market strategies whereas organizing corporate incentives, flyers and newspaper advertisings are some of the offline market strategies.

There are several car rental services at the global level include Enterprise, Hertz, Avis Budget, Europcar, Carzonrent India, Sixt, Al-Futtaim, Localiza, Eco and GlobalCARS. Some of the key companies in India are Myles, Zoom car, ECO Rent a Car, Avis, Let me drive. Other car rental services in India are Ola Rentals, Uber etc.

Global car rental market breaks down in to three regions; US, Europe and the Rest of the World. Avis Budget Group and Hertz are the leading players with majority market share in the U.S. car rental industry. The growing adoption of higher digital technologies in automobiles has enhanced the global car rental market.

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Rising Demand Of Peer To Peer Sharing Cab Services In Europe Market Outlook : Ken Research

Car rental industry is a multibillion dollar industry and still undergoing with the major changes from various factors such as new innovations and providing more applications to the consumer. With the increase in the prices of fuel the rental car shares are becoming increasingly popular. Recent research indicates that in the U.S. using car sharing services saves consumers anywhere between USD 14 to 43 per month. Car share technology uses an automated and membership based system to offer an affordable transportation solution. According to the report analysis, ‘Car Rental Market Research Reports’ suggests that car share technology with in vehicle rental market has the capability to decrease the amount of traffic on the roads and save the money of the passengers. Moreover, both Hertz Global Holdings and Avis Budget Group reached substantial financial results last year and it is also expected that in the coming years both the companies are accomplished the positive outcome with the more development in the car rental industry.

Car sharing surge the benefits of auto mobility to individual without bearing the cost and effort of car ownership. Therefore, car sharing has pursuing seen double digit growth over the recent last few years, especially in the metropolitan cities where major portion of population are passing on the costs of car ownership. Moreover, corporate car sharing users are becoming an unavoidable source of additional business for stationary car sharing providers. In Europe this car sharing technology is growing rapidly and most prominently in the Germany and France. Well known providers such as car2go and DriveNow are already introduced, not only in the major cities in Germany or France whereas, all across Europe, the US, and Asia Pacific region. In addition, the developing countries in the Asia Pacific region are being catered the huge market share with the more development in the technology of car sharing and lead the significant market growth to the car rental industry. According to the report analysis, ‘CAR RENTAL INDUSTRY RESEARCH AND MARKET REPORTS’ states that the car rental industry is expected to grow with the more innovation in the technology of the car sharing and in Europe has seen a positive development of the car sharing in terms of number of cars and number of users in the recent past years. In addition, peer to peer car rental makes a majority of the car sharing market which is forecasted to grow in the coming years at a CAGR of over 20% for the period 2017-2024.

In the Asia Pacific region it is expected that the industry of car rental is going to grow rapidly with more development in the various models of the car sharing technology such as Peer-to-Peer car sharing, Stationary car sharing and Free-Floating car sharing. Not only has this, Europe is also working efficiently for acquiring the handsome amount of share in the market with the more innovations in the models.

Moreover, many of the companies are working in this sector of market whereas Enterprise is dominating the huge market share with the efficient working followed by Uber. The Turo in the US and iCarsclub in Singapore are functioning in this market with more different characteristics whereas in the recent trend, Europe accounts for about 50% of the global car sharing market. Therefore, the market of car rental industry will most prominently increase in Europe and grow across the globe with growing concern related to traffic control.

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Rising Demand Of Gps Technology In The Car Rental Industry Market Outlook : Ken Research

In the modern era, the car rental industry is undergoing with the major changes from factors such as advancing consumer preferences and new innovative technologies. Additionally, the increasing concern of global warming have a major influence on the car rental industry. Furthermore, more efficient technologies in the car rental industry has been undertaking to produce rental options that will appeal to customers with an environmental conscience. Not only has this, many companies who are actively changing the way of operating the car rental industry to meet the demands of the ever-growing environmentally friendly market. According to the report analysis, ‘CAR RENTAL INDUSTRY ANALYSIS’ suggests that the industry of car rental will grow in the forecasted period with the development technologies such as the installation of GPS tracking system which can be connected with cellphone GPS tracking devices.

Technologies are changing in the cars thus industry has recognized the importance of providing quality car rental options for travelers. Many other technologies introduced by some progressive thinking of car rental companies which are changing in the way rates are applied. Occasionally, many companies had begun to charge on an hourly rather than daily basis. Additionally, Car rental companies are also introducing black box recorders to their fleets. This is a technology that through GPS tracking can ascertain where a car is at any one moment. Not only has this, introduction of technology in the car rental industry has been the recording of biometric data from customers. With the involvement of local police forces, procedures are now in places to record a thumbprint of a customer seeking an electronic record is taken of their details. Recording of thumbprint means a lot when a theft occur, it make possible to hand over the rightful information to the police. Moreover, car rental industry has now aiming through online platforms by simple means of application or websites. This makes the car rental industry more attractive for consumers. In the coming years, the report, ‘CAR RENTAL BUSINESS REVIEW’ states that the global car rental industry market is expected to hit a CAGR of 17.3% which makes the market more competitive with the more advancement in the technology and expansion of businesses. The new key players are aiming, with more development in the technology which will lead to an industry that is both friendly to the environment and also secure for the firms.

The car rental industry is expected to grow significantly with the increase in disposable of customer, increasing urban population, rising economy, significant increase in the tourism and others. In the Asia-Pacific region it is expected that this industry is going to grow rapidly as in the other regions the GPS technology and recording of thumbprints is not currently possessing due to less development in the technology. Whereas, in the developed countries of Asia are playing dominant role as they are having enhanced technology with better services and there is no financial constraints. New players in this market are mainly focusing on the innovations, installation of new technology and providing better experience to the customer. The growth of car rental industry is always based on one simple thing – how the service provider deal with each customer.

The competition in this industry very much lucrative as majority of the car has its own specification and is equipped with special technology. In the term of competition this industry is truly a war zone with many key players such as Hertz, Avis, Enterprise, and others. Whereas, it is observed that Hertz is a prominent player or this market and dominate handsome amount of share in this industry. Car rental industry revolves around commercial and non-commercial segment in which all types of cars can be hired ranging from sedans to SUVs. Moreover, under non commercial segment, the competition is led by Enterprise which has highest share in the market.

In the Asia-Pacific region, the dull days never be seen by the car rental industry in the developed countries due to urban population and increase in disposable income. Moreover, in USA and Europe the growth in the car industry showing excessive number in the customer preference. The technology of GPS and thumbprint is benefitted for the user and company. Emerging of technologies in developing countries and entrants of new market players will lead the growth in the car rental industry in a significant manner over the decades as tourism is also increasing positively.

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Rental Cars, Global Systematic Thriving Business : Ken Research

Car rental market business has developed rapidly over the past few years due to increasing development in the travel and tourism industry. The increase in the consumers spending limit along with improved roads or highways infrastructure worldwide are the major factors that encourage consumers to opt for leisure and business trips. This trend in turn boosts the tourism business. With the introduction of information technology in the car rental market, major transformations were made over the past few years. Additionally, cyber technology is used for customizing travel trips, online reservations and bookings that has encouraged consumers to make their travel safe, quick, reliable, and easy. Hassle-free process of online reservations and bookings increased the convenience for both the car rental operators and consumers on a global scale. 

Mergers, acquisitions and joint ventures are increasing in the global car rental market. The rising crude oil price anticipates a challenge in the car rental market over the next few years. Car rental is the most important service within the urban transport sector. The increasing technology has witnessing an increase in business travellers, demand for car-sharing and growth in megacities. Car rental companies are adding cars that have advanced telematics solutions and navigation functionalities.

Car Rental Industry Analysis states that majority of the global consumers prefer rental cars for local and outstation travelling which witnessed a higher growth in car rental market. Time conservation and route flexibility has attracted many consumers towards rental cars which provide day-to-day intra-city navigation globally. Increasing businesses and cultural events in the corporate industries sector has impacted the growth in the global car rental market with event transportation solutions at affordable costs. These trends help in less environmental pollution and transportation of a large number of passengers.

Majority of the car rentals use Multi Utility Vehicles (MUVs), Sports Utility Vehicles (SUVs), economy cars, executive cars, and luxury cars. Economy cars are dominating the car rental industry and will continue to dominate in the next decade due to their low cost and higher mileage. Almost all the business travellers demand for higher product and service quality along with reliability during travelling in a rental car.

According to “Car Rental Business Review”, SUVs and MUVs will exhibit a minor growth over the next decade with a moderate growth in leisure travellers. The leading competitors in the global rental cars are Avis Budget Group, Enterprise Rent-A-Car, Europcar, The Hertz Corporation, Sixt, Localiza Rent a Car, Eco Rent A Car, Carzonrent India Private Limited (CIPL), and Al-Futtaim Vehicle Rentals Company. The rental cars market is categorised based on the vehicle type such as economy, executive, luxury, SUV, and MUV cars, by rental category such as airport, local, outstation, and other transport, and geographically, Asia Pacific, Europe, North America, and rest of the world. All the global rental car services operate through a network for pickup or drop-off points. The vehicles are owned by an organization that rents them to consumers for short periods such as a day or for a month or year. The increasing global population demands for effective transportation systems and positive growth is witnessed in the rental cars market over the coming years.

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International Car Rental Industry Market Outlook : Ken Research

Overview: The car rental industry is a multibillion dollar industry globally. Car rental sector has observed immense growth in the recent years especially in USA and countries of Europe because of rising air travel by people for business or leisure. Car rental market research reports suggest that the US car rental industry alone was the major contributor in revenue terms for this industry. Speaking in terms of competition, car rental industry has proved to be a war zone with dominant player such as Avis, Hertz, Enterprise, keeping a tight hold onto their share. Car rental industry has now focused to online mode of reservations due to cost advantage. Users can avail the services through online platforms by simple means of an application or website. Car hiring industry revolves around commercial and non commercial, renting of all sorts of cars ranging from sedans to SUVs and compact hatchbacks. The industry is expected to hit a CAGR of 17.3% during the period of 2018-2022 making more lucrative for dealers and companies to either expand or enter the market.

Outlook: Enhanced user experience through digitization, introduction of green vehicles in car fleet, enhanced technologies in car rental services and concept of self driving unlike hire driving are some major trends that impact the industry dynamics.

Enhanced GPS technology developed in the recent years has nearly transformed the dynamics of this industry. This technology has enabled companies to gather better vehicle status. For example if a company is running low on vehicles, it will check via its GPS for availability of the next vehicle. That way the customer can rent car much more quickly and easily. Enhanced GPS technology not only keeps a track of the consumer’s location but also tracks the users speed and if he/she gets a speeding ticket, it will highlight how fast the user was going. This helps the company to save on speeding tickets that user do not pay. Tracking fuel usage and thus resulting in reduced overall travel cost is one of the major advantages of the GPS. This makes the car rental industry more attractive for consumers. In contrast to other mature service providing industries, car rental industry is highly consolidated resulting in a cost disadvantage to new entrants because of lack of economies of scale.

Market Size: Car rental industry analysis suggests that it is expected to grow exponentially due to increasing urban population, rising economy and rapidly growing tourism as well as increasing disposable income. In India this industry is expected to grow at a slower rate as compared to global trends thus, resulting in a sluggish growth in revenues too. All the car companies currently do not posses GPS technology because of financial constraints. However, big market players with deep pockets are using this service to better service their consumers and also benefit themselves.

Competition: Under non commercial segment, the competition is led by Enterprise which has highest market share. On the other hand competition under commercial segment especially airport services has been hypercompetitive with Hertz emerging as the market leader. Hertz uses Neverlost as its GPS system. Avis has collaborated with company Navman to provide GPS services to its user. Enterprise too offers the services of Garmin Nuvi GPS technology to improve consumer satisfaction.

Conclusion: In India, the better days of car rental industry are yet to arrive whereas global indicators reveal that growth in developed nations of Europe and USA will be significant. Moreover GPS technology makes car rental industry favorable for both the company and the user as it has benefits for both. Majority of the companies are currently implementing this technology to have a better share in the market.

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Global Luxury Car Rental Market Outlook : Ken Research

Introduction:  The global car rental market research report has had immense competition from car sharing and peer to peer rental companies like Uber, Lyft and Turo which has made the competition scenario highly complex and increased customer expectations as well as supplier power. Aside from the competition there has been volatility in terms of regulations with different companies having to work under their own set of rules despite being indirect or in most cases, direct competitors with each other. Companies like Turo and HeyaCar do not undergo the extent of regulation and safety and equipment standards checks that companies like Enterprise and Avis undergo making it easier for platforms like Turo to gain customers. Despite the competitive scenario and the level of regulatory intervention occurring there is still major progress happening for the car rental market with the global market for car travel expected to grow from its 2017 value of about USD 65 Billion to over USD 104 Billion by 2022 with a CAGR of about 9%. This is mainly driven by the increasing demand for rental cars through business travelers and increased holiday based tourism. And while the main segment expected to gain value is the economy segment owing to the price conscious mentality of economic travelers, the major profit contributor and the segment with the most potential is expected to be the luxury segment

Overview: The global luxury car rental segment is expected to grow with a CAGR of 14% for the period between 2014 and 2022 growing from its 2014 value of about USD 8.1 Billion to over USD 23 Billion by 2022. The increasing popularity of luxury cars is owing to a growing disposable income of travelers looking for comfort and ease while traveling, but also owing to an increasing number of High Net worth Travelers increasing the amount of tourism for holiday and recreational purposes. A majority of marketing activities  done for luxury car rentals is to appeal to the largest 1-5% of the population which belong in the highest level income groups and aiming to offer added value instead of discounts and concessions on price . The companies focusing on luxury cars handle a database of clients which is extensively maintained and updated just like in the services industry and use that as a means for customer relationship management by prioritizing their customers.  The growing need for business based travel by high level executives is another factor contributing to the growth of the luxury car market. Circular economy strategies are helping luxury car rental firms to invest in the business.

Competition Scenario : The most  prominent players of the luxury cars rental market include Avis Budget Group, Inc., Sixt Rent-A-Car, Enterprise Rent-A-Car, The Hertz Corporation, Europcar, Al-Futtaim Group, Carzonrent, Localiza Rent A Car, Eco Rent A Car, and others.

Outlook: The Compact luxury cars segment is expected to dominate the luxury cars rental market over the forecast period among other luxury car type segments including midsize luxury cars, full-size luxury cars, luxury crossovers & minivans, and luxury SUVs. The Compact luxury cars segment is estimated to expand at a relatively high growth rate compared to the remaining segments with a CAGR of 14.2% over the forecast period. The Airport transport segment is expected to account for relatively high share with a significant growth rate of 14.4% over the forecast period. Other segments of the luxury cars rental market by end-users segmentation include local usage, outstation, and others. The Online segment is expected to expand at a relatively high CAGR the offline segment over the forecast period, attributed to increasing trend of e-commerce across the globe and ease of availing the service through the online platform. The Online segment is expected to account for a share of 70.2% by 2022 end. The luxury cars rental market is fragmented on the basis of the region as North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. Among the above-mentioned regions, the Asia Pacific luxury cars rental market is expected to expand at a relatively high growth rate over the forecast period owing to the emerging economies in Asian countries. However, the luxury cars rental market in North America is expected to dominate the global market in terms of value with 46.7% revenue share by 2022 end.

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The Security Danger Of A Rental Car Report : Ken Research

Introduction: Recent statistics indicate that a person is more likely to be a victim of a car crash than a terrorist attack. The growing number of cases with rental car accidents and increasing safety and regulatory risks posed to rental car companies has led to many “travel management companies” that offer these vehicles installing telemetric systems that record and in some cases, modify driver vehicle behavior .The growth of the rental car market has led to increasing demand for automobiles capable of providing safety and comfort at a reasonable price but there is a risk considered from the side of the rental car company as well. The growing cases of customers revving the car, applying excessive pressure on the breaks and overdoing the acceleration are signs of how customers generally do not treat rental cars ideally as they are meant to be treated. This shortens the effective lifespan and ruins the performance of the car. To safeguard against these measures, rental car companies have installed security systems meant to track the driver activity as well as their treatment to the vehicle. These systems range from microphones to full fledged micro surveillance systems that are setup in the car. Although this seems like a rational procedure. There is an emerging possibility that could be highly detrimental to the goodwill of any rental car company if found to be true as per Market Research Reports for Car Rental

News: There have been several articles and news alerts complaining about the security systems being installed in the vehicles. The customers using rental cars have now been made aware that the recording system can threaten their privacy and security. The Telegraph news story implicating Hertz to be spying on their customers using the new camera and microphone installations into their Hertz Neverlost 6 had a very public repercussion with Hertz customers posting on their social media that they would never use a Hertz rental car again and neither should anyone else. “This kind of disregard for privacy should not be tolerated” said one Hertz customer. In response to the camera systems, Hertz spokeswoman Evelin Imperatrice announced: "The cameras in NeverLost 6 units aren't functional and cannot be turned on under any circumstances, by either renters or by the company. When we chose the new hardware device for NeverLost 6, we included a camera option in the event that a video conferencing function might be a useful, future application that renters would welcome. Aside from the very public incident with the Neverlost 6 Systems that was faced by Hertz, Hertz , along with several other rental car companies have been officially put in the eye of regulatory authority with the Better Business Bureau being asked to investigate a number of car rental companies for improper business operations and measures against personal security and privacy. The growing threat with the implementation of technology into the rental cars would lead to a much worse condition with smart rental cars which are capable of tracking everything possible within a persons trip. Newer cars that connect to the Internet can collect vast amounts of data about drivers, such as where you went to dinner, if you broke the speed limit or if your seat belt was buckled. When you buy a car, you cede data control to your car company. Most automakers say they won't sell information without an owner's consent. But they're not legally required to inform you if they do.

Opportunity: Car data is about to become big business. A new report from consulting firm McKinsey says automotive data could be worth USD 450 billion to USD 750 billion globally by 2030. Automakers, insurers, high-tech firms, city planners and advertisers are among those who could use data to refine services. Drivers could share data in exchange for navigation systems, or they could pay extra for perks like a parking spot finder. There is an opportunity for a regulation system that works in favor of both parties where the condition of the car is monitored and the regulatory requirements of usage of the car in terms of the rental company policy is in check while not broaching a customers privacy. The creation of a centralized system that can be fit into any car, manufacturer or rental would allow for a common technology that is accepted by consumers and the industry as well.

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Threat Of Peer To Peer Car Rental To Traditional Car Rental Companies : Ken Research

Introduction: As of September 2017, peer to peer car sharing platform Turo raised an additional USD 92 Million from its investors completing their series D round of funding. The company utilizes a business model of peer to peer  matchmaking by providing a platform for users with vehicles to list their own cars on the platform to make money to meet customers looking to rent a car for a short or a long period of time. This trend is gaining traction as Car Rental Industry Market Research reveals that the cost of owning and maintaining a car has increased significantly. Turo is accompanied by companies like Hyrecar, Hiyacar and Getaround to provide feasible solutions for car rentals at reasonable rates via their mobile application / web based platform which uses a matchmaking software to connect customers with car owners, the application allows customers to co ordinate the pickup and drop portion of the vehicle delivery so they can decide on a time and location that is convenient for them. Turo also provides added insurance for the vehicles and every car is vetted before listing and the information exchange works simply by customers and vehicle owners sending digital copies of their identity information and vehicle information needed. The emergence of applications like Turo is changing the short term car rental industry for the better but is simultaneously hurting the business for traditional car rental firms

Market Threat: The global car rental market is poised to grow significantly from its value of about USD 56 Billion in 2016 to over USD 124 Billion by 2022 with a CAGR of about 13% for the period. While this growth outpaces a majority of industries, there is major scope for expansion being hindered through the introduction of peer  to peer  car rental. Peer  to peer  car rental makes a majority of the approximately USD 5 Billion car sharing market which is forecasted to grow to over USD 11 Billion by 2024 with a CAGR of over 20% for the period 2017-2024. This signals a major threat for the car rental market as short term car rental is expected to be soon replaced by peer  to peer  based car sharing platforms. The average annual cost of maintaining and servicing a car is approximately USD 8,609. The added expenses for fuel which is volatile based on constantly changing fuel prices has been demotivating consumers from purchasing vehicles of their own.  An increasing number of consumers prefer to avail car sharing services for short and long term rentals and the reasoning is evident. Recent research indicates that in the U.S, using car sharing services saves consumers anywhere between USD 145- 435 per month. The added benefit being that comparative to a rental car company, Turo provides users with insurance for their rental cars which is not standard in traditional rental car companies and moreover, Turo costs approximately USD 52 lesser than traditional providers on a monthly basis. Another major factor in the increasing popularity of applications like Turo is the variety, as Turo allows owners to list any car of theirs and also helps aspiring customers purchase a new car there is a much larger selection of vehicles when compared to a traditional rental car company which usually handles only a handful of models. Turo lists cars from the 2016 Ford Mustang to a 2018 Porsche Carrera. A similar range of benefits is observed in companies like Zipcar and HeyCar, although not all the companies provide the wide range of vehicles compared to Turo

Conclusion: The traditional car rental business model is in danger of being replaced by peer  to peer  models which reduce the operating costs for businesses making a majority of their costs variable and changing the business model to be light on fixed assets. Another major factor influencing the growth of the online platform based model as opposed to traditional rental companies is the level of convenience that is brought about by using technology based platforms and although companies like Enterprise are lobbying for there to be strict regulations imposed on Turo similar to traditional rental car companies, the satisfaction of the customers is significantly higher through apps like Turo and Zipcar and that is even without tight regulations ensuring high quality stands. Turo is effectively changing the rental car industry in the same way Uber changed the taxi industry by increasing the size of the market but by running taxis out of business due to lower prices and better customer service and experience .

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https://www.kenresearch.com/tag/automotive-transportation-and-warehousing/car-rental/161.html

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Ken Research

Ankur Gupta, Head Marketing & Communications

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0124-4230204

Car Rental Industry: The Threat Of Car Sharing To The Business Of Short Term Car Rental

Introduction: In April 2018, two companies, Ekar and Udrive were awarded contracts by the Dubai Road and Transport Authority for launching their ride sharing startups that allow users to share rides paying by the minute.  Udrive has 70% of the market as of now. The introduction of ride sharing has allowed consumers to avail a larger variety of cars, instantaneous transport on demand and the comfort of travel in a car, all without having to bear the expense of purchasing or servicing a car. Although car rental market had a way to minimize the purchase of cars by allowing consumers to rent cars on a required basis, the high cost of renting a car for a day from a car company had led to an inverse effect with consumers. The increased need for rental cars became a dependency only for travelers. The growth of the market has been due to the increasing needs of business and leisure travelers. This was the major purpose of renting a car, to have it available when you need to travel anywhere, anytime. 

Ride Sharing:   March 2009, pegged the launch of Uber , the world’s largest ride sharing company, which was created as a solution to the issues of  car rental allowing customers to order a car for their travel based on need for which the car would arrive in a few minutes . The cost of travel would be including everything required.  Since then there have been petitions and protests by taxi drivers in multiple countries asking to ban apps like Uber although there has been regional adoption of the Uber business model in many countries as well. The advent of applications like Uber led to a major hit in the business of the taxi market. And today, ride sharing as a whole poses a threat to the rental car market. The largest rental car company in the US, Enterprise car rentals, was losing significant business due to the introduction of Turo, an app that allows users to list their own cars to be rented to make income and also allows users on the app to find their dream car to rent or to finance a new car. The point of the app is connecting car owners to people in need of a car just as Uber connects people in need of a car ride to people capable of providing one. The usage of applications like these has led to a major problem for rental car companies. Uber itself exists in 72 countries as of March’2018. The availability of cars allows most business and vacation travelers the opportunity to avail a ride on demand by ordering a car for a trip with a driver and ensuring that there is no further need for the car. The only time this is an issue is if the car is needed to wait for the customer or if there is luggage that needs to be stored and hauled around. Usually, in business travel especially, there is a very minimal need for luggage to be carried around allowing most travelers to book an Uber between destinations for business travel and for a majority of vacation travel purposes as well. Hence the need of a rental car is not as high as before.  Multiple car rental companies like Hertz and Avis have been constantly losing business due to the intrusion of Uber in the car travel market. Although the effect is not major yet, there is an expected trend that companies like Uber will become a major substitute to travelers who feel the cost of renting a car is too high to be justified as it is already happening with premium travelers and car rental is virtually inexistent among locals, there seems to be a growing threat to the car rental market from the ride sharing market

Conclusion: The companies that use ride sharing are taking away a portion of business for short term car rentals. The portion is expected to increase over time. The adoption of strategies such as gamification, increasing customer service, Real time GPS positioning and system automation are efforts made in improving operations and customer experience but cannot be adequate to win consumer confidence if the cost and satisfaction factor is not improved.  

For more information, click on the link below:

https://www.kenresearch.com/tag/automotive-transportation-and-warehousing/car-rental/161.html

Contact Us:-

Ken Research

Ankur Gupta, Head Marketing & Communications

sales@kenresearch.com

0124-4230204