Car Rentals: How is it a thriving industry and a great alternative to individual mobility and public transport?
By Greg Moran, CEO & Co-Founder, Zoomcar
The Coronavirus outbreak has forced us to think of new ways to travel. With the public transport forced to operate at half its capacity or not allowed to operate at all, having a car or any form of personal transportation makes life more convenient. Individual mobility in this time of need is a necessity. And for those who can’t afford it, there is no better solution than car rentals.
Car rentals offer several benefits, including privacy, hygiene, flexibility, safety, and security of the users. The future of rental car services will continue to be popular in the coming year. In this context, let’s dive into more details about the car rentals market and check out what lies ahead in this booming industry.
The scope of car rentals and personal mobility in 2022
Cars are expensive and require much maintenance, and having a car is a big commitment; if buying a vehicle is not a feasible option, you can always rent or subscribe to one! According to a recent study, 35% of people have already chosen a favorite car rental brand.
The average number of car rental service users was 2.7% in 2021 and is expected to hit 5.4% by 2026. Considering the recent recession, hailing a cab or buying a car is not a viable option for everyone and so is public transportation when it comes to safety. Owning a car might have been a matter of prestige, but according to the millennials, renting a vehicle is hassle-free and cheaper; there is no worry about insurances, parking places, and volatile fuel prices, among others that faze the buyer. This is where self-drive car rental services come in handy. Users can rent a car and drive it whenever they want while paying a rental fee.
Subscribing to a car is a better option. This business will continue to rise and expand into more flexible arrangements with longer lease terms of 12, 24, or 36 months. The focus after the post-pandemic world is on personal mobility and safety, which is expected to open up a slew of opportunities for car rental companies.
Today, car subscription-based models have taken the front seat, eliminating the financial commitment to purchasing a new vehicle altogether while delivering the safety and convenience of a personal commute. The COVID-19 pandemic saw a drastic rise in the rental car industry. People now want to look for safe, affordable, and short-term travel solutions, and many car rentals are giving these solutions.
Even the rental cars are now sanitized thoroughly before giving them out for personal mobility, which is an added advantage. Owning a car is a long-term commitment, but with rentals, you are free to rent the car you prefer, and these subscriptions can be long-term or short-term.
The convenience of subscribing to a car is that a vehicle becomes necessary if there is an emergency. If you are not a frequent traveler, there are options where cars are available for rent, even on an hourly basis. This alternative has various benefits, and people are choosing to opt for this instead of buying cars. Especially since the pandemic, there has been a rapid increase in the rental car service market, and this trend is here to stay with more and more companies providing car rental services at affordable price points.
In a nutshell, the scope of rental car service is vast, and since safety and affordability are two factors that we always have in mind, it is not going anywhere anytime soon. When we compare the expenses of owning a car and subscribing to a car, the latter will always triumph because of its plethora of advantages. You can get a car delivered at your doorstep completely hassle-free, sanitized, and without making any down payment. So, think wisely and subscribe to a rental car service for a seamless mobility experience.