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How car sharing has impacted the car rental industry

Once upon a time, car rental firms were the only option for anyone who needed access to a car but did not own one. How has car sharing has impacted the car rental industry.

Development of technology and purchasing power of younger generations, whose requirements are completely different than those of previous generations, has meant in today’s world, people have more options that meet their mobility needs.

When Car Sharing and peer-to-peer hire first came onto the scene, it felt like traditional rental hire days were numbered. But then COVID hit and suddenly consumers were more wary about sharing in general, which has provided rental firms the opportunity to take stock and think about how they will cater to the next generation of renters.

Car Sharing services have become a fixture in the world’s cities as the sharing economy trend meets changing consumer demands. According to GMI forecasts, the car sharing market is set to reach $6.5 billion by 2027.

According to a Fortune Study 63% of previous vehicle rental customers cut back on their rental spend, resulting in a $3.2 billion loss.

Furthermore, 56% of clients stopped utilizing automobile rental services altogether, with the majority of them opting for ridesharing services.

The dominance of car rental firms might seem like it’s diminishing but let us not forget: all those years of expertise can still be leveraged to remain relevant and meet today’s consumer needs.

With the sharing economy gaining traction, particularly among millennials and younger generations, rental companies need to understand what benefits such models can bring to consumers and try to emulate these experiences elsewhere.

Car sharing has fewer restrictions than renting a car, it is comparatively eco-friendly, and, most importantly, is often cheaper for customers. However, car rental can still trump car-sharing with added customer safety elements, such as more robust insurance policies and cleanliness measures. Fortunately, most businesses understand the importance of adapting to change and are equipping themselves for a technology-driven future.

There’s no getting away from the fact: the rental experience is changing. Be quick to optimize your processes with RENTALL software. With numerous modules that help move your business into new verticals RENTALL is suited to all sectors of transport hire.

What disruptive new industries like Turo, Uber and Zipcar bring most of all is choice for customers. There’s no singular way to hire a vehicle anymore, and decisions are not solely made on price.

To offer multiple services effectively in one go, your business needs a trustworthy software system that allows you to offer a range of services from car-sharing to car renting. Now is the time to reposition your business, and by taking advantage of RENTALL’s one-stop software solution, you can build new services that will help set your business apart.

Whether that be moving to an electric fleet, enabling vehicles on demand, ride hailing services, keyless entry or mobility-as-a-service subscriptions. As long as you demonstrate you are willing to adapt, you will stay competitive.