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Summary of our market study
The car rental market, which includes transactions for the short-term loan of passenger cars and light commercial vehicles as well as carpooling services, is a dynamic and expanding sector globally, with France and Germany being significant markets in Europe. As of 2018, there were 2.75 million car rentals, dominated by key players such as Avis, Europcar, Enterprise, Hertz, and Sixt. While specific figures starting from 2020 are not provided in the text, it is noted that there is a growing consumer interest in hybrid and electric car rentals. Additionally, innovative trends like car-sharing and corporate car rental models are emerging, with the latter being exemplified by Europcar's Ubeeqo Business application, which facilitates the sharing of rental cars among employees in a company. These trends reflect changing demand patterns towards cost-effective and convenient transportation solutions in the car rental industry..### Trends and Dynamics in Short-Term Car Rentals and Carpooling The car rental market, particularly focusing on short-term rentals and carpooling, exhibits strong dynamism and growth within the global sphere, with prominent attention on European leaders like France and Germany. Within this market, distinct preferences have emerged, shaping the way consumers and businesses approach vehicle rentals. In the year 2018 alone, the sector saw between 2.5 and 3 million rentals, highlighting a significant level of activity within the industry. Major corporations in this space include well-known entities such as Avis, Europcar, Enterprise, Hertz, and Sixt, which collectively navigate a competitive landscape while striving to meet evolving customer demands. Within the trends that define this market, there's a burgeoning interest in the rental of hybrid and electric vehicles, echoing a wider environmental consciousness and preference for sustainable transport solutions. This inclination is not only amongst individual consumers but also noticed within the demands of corporate sectors. Furthermore, the concept of car-sharing has emerged as a formidable trend. Users are increasingly attracted to the flexibility and cost savings it offers - negating the expenses and responsibilities tied to vehicle ownership like maintenance and parking. Car-sharing allows individuals to have access to transportation on an as-needed basis, without the commitment of ownership. The business car rental model is another innovative trend, wherein companies embrace a shared economy approach to vehicle usage. This model facilitates multiple employees using a single rental car, optimizing resource utilization. Europcar's application, Ubeeqo Business, is cited as an illustrative example of this utility model. It demonstrates the innovative digital solutions that car rental companies are deploying to cater to the new wave of corporate mobility needs. With this in mind, the car rental market exhibits robust adaptability in catering to modern transportation needs, sustainability goals, and innovative models of vehicle use. Companies within the market are navigating through a landscape marked by a shift to green vehicles and sharing platforms, which are rapidly becoming the norm in urban mobility..### Major Contenders in the Car Rental Arena: Avis, Europcar, Enterprise, Hertz, and Sixt In the bustling landscape of the car rental market, a few names stand out for their sheer reach and brand recognition. These companies have established themselves as trusted providers in the short-term rental and carpooling niches, expertly navigating the demands of modern mobility. Let's delve into the roles and unique propositions of each of these key players. **Avis:** Synonymous with reliability, Avis Car Rental has made a name for itself with its well-maintained fleet and widespread international presence. Recognized for exceptional customer service, Avis caters to both the casual traveler and the business executive looking for a smooth rental experience. **Europcar:** As one of Europe's leading car rental services, Europcar offers an extensive selection of vehicles to accommodate all types of travel. This company stands out for its commitment to environmental sustainability, boasting a fleet that includes a range of eco-friendly options. Europcar's Ubeeqo Business app exemplifies their innovative approach, simplifying the process for companies to manage shared vehicle usage among employees. **Enterprise:** With a strong emphasis on serving local communities in addition to airport travelers, Enterprise Rent-A-Car prides itself on personalized customer care. Enterprise has carved out a significant niche in the market by offering a versatile array of rental options, including specialized vehicles and flexible leasing terms. **Hertz:** One of the oldest and most established names in car rentals, Hertz is known for its vast selection and dependable service. Offering a mix of luxury, economy, and specialty vehicles, Hertz has maintained a loyal customer base and continues to evolve with initiatives aimed at streamlining the rental process through digital technology. **Sixt:** A mix of European elegance and innovative deals has propelled Sixt to a prominent position in the car rental industry. The German-based company showcases a diverse fleet that ranges from practical compacts to high-end luxury cars, appealing to a broad spectrum of consumers who value both performance and style. These prominent players in the car rental market have mastered the art of blending traditional rental services with innovative mobility solutions. They effectively respond to the evolving needs of their customers, be it through the adoption of eco-friendly vehicles or the development of user-friendly technology for managing shared car usage. As they continue to adapt to regulatory changes and emerging consumer trends, their positioning remains solid in an ever-changing landscape of transportation options.
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Summary and extracts
1 Market overview
1.1 Definition and scope of study
The car rental market concerns all transactions between companies and individuals who allow the loan of a vehicle for a certain period of time. A distinction is generally made between short-term, long-term or leasehold rentals.
Short-term rental activities include carpooling, defined as the sharing of a vehicle or fleet of ground transportation vehicles for the benefit of users who are subscribed to or authorized by the organization or person managing the vehicles.
This study focuses on exclusively on short-term rentals of passenger cars and light commercial vehicles as well as on carpooling activities . This is a very dynamic and growing global market and the French and German markets are the main markets in Europe.
In 2018, 2.75 million car rentals were made, the main players being Avis, Europcar, Enterprise, Hertz and Sixt. [ Público In addition to the growing demand for hybrid/electric car rentals, new trends in the domestic market are the car-sharing model, which makes it possible to travel without the problems associated with maintenance or parking costs in a private car, and the business car rental model. The latter allows companies to share a rental car with several employees, following the example of the application developed by Europcar called Ubeeqo Business
List of charts presented in this market study
- The global car rental market
- Demographic breakdown of Europcar customers
- Breakdown of market share in the LCD market
- Financial performance of car LCD players
- Revenue per day - Short term car rental
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Latest news
Hertz continues to pay the price for its Tesla gamble - 06/08/2024
- - Hertz to order 100,000 Model 3s from Tesla in October 2021.
- - 11% of Hertz's U.S. fleet was electrified, including 80% with Teslas, compared with an average of 2-3% for other rental companies.
- - Repair costs for electric models are on average twice as high.
- - Electric car sales growth of 1.3% in 2023.
Hertz changes boss after disastrous bet on electric cars - 17/03/2024
- - Electric vehicle order: 100,000 electric cars to Tesla for $4.2 billion.
- - Hertz announces plans to sell 20,000 electric cars, representing a third of its "clean" fleet.
- - Repair costs for electric vehicles are on average twice as expensive as those for conventionally powered vehicles.
- - Its German counterpart, Sixt, has also expressed its intention to reduce the number of Teslas in its fleet.
Stellantis signs mega contract with Sixt - 17/01/2024
- Stellantis has signed an agreement to supply up to 250,000 cars to Sixt.
- Deliveries will begin in the first quarter of 2024, and run through to 2026.
- Hertz had reported an order for 100,000 Teslas in autumn 2021.
- Sixt had signed with BYD for 100,000 cars in October 2022.
- The short-term car rental sector accounted for 8.25% of car registrations in France last year, or nearly 146,000 cars.
United States: Hertz gets rid of its electric cars and switches back to gasoline - 12/01/2024
- Hertz plans to sell 20,000 electric cars, or 20% of its "clean" fleet.
- By 2021, Hertz had placed an order with Tesla for 100,000 Model 3s.
- Currently, 11% of Hertz's US fleet is made up of electric vehicles, 80% of which are Tesla.
- Among Hertz's competitors, the proportion of electric vehicles in their fleets is generally between 2% and 3%.
- Repair costs for electric cars are on average twice as high as for internal combustion vehicles.
- Hertz has signed an agreement with General Motors for the purchase of 175,000 electric vehicles, and another agreement for the purchase of 65,000 Polestar models.
Hertz pays dearly for its giant deal with Tesla - 20/11/2023
- In October 2021, Hertz ordered 100,000 Model 3s from Tesla
- Currently, around 11% of Hertz's fleet (590,000 cars) are electric cars, 80% of which are Tesla (Model 3 and Model Y).
- Avis and Enterprise's fleet of electric vehicles in the United States does not exceed 1 or 2% today, according to Morgan Stanley.
- The two main risks for Hertz in the coming years are "higher operating costs" and a risk "linked to the residual value" of the cars.
- Repairing an electric car costs "about twice as much" as a traditional car, according to Hertz's CEO.
- Lower prices have reduced the resale value of its cars and increased its depreciation.
Car rental: Sixt steps on the toes of Hertz and Avis - 15/10/2023
- Sixt was founded in 1912.
- Sixt has a fleet of over 166,000 direct vehicles and almost twice that number through its franchisees.
- Sixt is number 1 in Europe and has ambitions to expand into the United States.
- The global car rental market is growing by around 5% a year and is expected to top the $100 billion mark this year.
- Sixt generated revenues of 3 billion euros last year, compared with 12 billion for Avis and 8.6 billion for Hertz.
- The Sixt family controls 58% of Sixt's capital, despite its IPO in 1986.
- Sixt has a premium positioning in the car rental market.
- Sixt is present in 42 of the top 50 airports in the United States, which has become the Group's largest market.
- In Europe, Sixt has opted for electric vehicles, with over 20% of its fleet already electrified, compared with 2% at the start of 2020.
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