Services and Utilities research analysts at Future Market Insights give insights on the significant factors contributing to increased profitability for car rental services providers
Car rental services that offer a car on rent for a certain time period in accordance with the customer requirements are gaining major traction recently as customers opt for convenient traveling alternatives. The providers of car rental services are further gaining profitability owing to the ease of booking car rental services even through online platforms. Moreover, customers that are frequently moving around cities offer more beneficial scenarios for the car rental services providers.
How are technological advancements shaping the car rental services landscape?
The emergence of technology has influenced several industries around the world, car rental services ecosystem also being one of them. Owing to this, the providers of car rental services are leveraging the capabilities of technology to not only offer state-of-the-art solutions but also multiply profits. The car rental services companies are working towards differentiating with respect to the way they address their customer requirements to stand out amongst the rest.
For instance, ShareRing, a company developed for making sharing services and goods more accessible, introduced a block-chain powered car-sharing platform that enabled users to book and unlock rental cars in a span of 30 seconds. Similarly, a biometric car rental checkout that streamlines car rental transactions at airports is underway, developed using technology provided by CLEAR, an expedited travel provider.
How is the proliferation of electric cars influencing the car rental businesses?
The automotive sector has reflected a substantial shift towards electric vehicles owing to the increasing environmental concerns and the growing awareness of fuel depletion. This has majorly influenced the car rental services business, where providers are incorporating electric car fleet for car rental services offerings. Incorporation of electric cars in public car rental services would further prove environmentally beneficial. For instance, a subsidiary of Diamler, Car2go has introduced its electric car rental services in Paris, where the company intends to add an increased number of vehicles to the fleet over the year.
How are car rental service providers leveraging opportunities in the market?
The car rental services providers are constantly aimed at reaping new opportunities to serve the market, owing to which, they offer new services. For instance, the Singapore based car sharing firm, Tribecar initiated that it will provide its S$2 per hour car rental service for the new drivers that are under the age of 23 and those with less than two years of driving experience, amongst whom the company witnessed an increasing demand for car rental services.
There has been a considerable transformation in the way customers travel in recent times. The aspect of car sharing has been adopted on a large-scale, thereby creating significant opportunities for car rental services providers. According to the car rental services majors in Brazil, there is an evidential shift towards automobile sharing in Brazil, which is benefitting the car rental services providers and further strengthening the economy of Brazil.
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