Car Rental Industry: The Threat Of Car Sharing To The Business Of Short Term Car Rental REQUEST FOR SAMPLE REPORT Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit 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 Tags: Car rental Business Review, Car Rental Industry Analysis, Car rental Industry Research and Market Reports, Car rental Industry Research Report, Car rental Market Research Reports, Car rental Market Research Reports Consulting, Market Research Reports for Car rental