Things To Consider Before Starting a Car Rental Business

Buying a car is not a smart decision but renting is. Let’s get to know the paradox between buying and renting. Getting a new vehicle is exciting but the financial constraints that accompany with it make it a less beneficial option. Buying a car can drain your wallet, in terms of both initial payment and the ongoing maintenance.

On the other hand, renting offers you huge benefits such as,

• Convenient option, contrary to public transportation
• Paying for a taxi every time
• Free from the maintenance of vehicle
• Economical and time-saving
• Less payment, more choices

Hence it is inferred that renting a car is convenient. Let’s have a detailed look at the flourishing rental industry,

An Overview of Car Rental Industry, Statistics, and Challenges

Bolstered by favorable economic conditions, the industry is performing well over the recent years and shows positive figures of growth,

• Revenue in the industry amounts to US$26,783 million in 2019
• It is expected to grow at an annual growth rate of US$30,686m by 2023
• When compared globally, most revenue is generated from the US

Some of the major players in the industry are,

• Global Cars
• Avis
• Sixt
• Hertz

The increasing demand in the market paves room for new players. People prefer renting a vehicle instead of owning one. Entrepreneurs who wish to start a business can prefer this sector as it can help them earn revenue in a short span.

How to Start a Profitable Car Rental Business?

Apps have changed the way businesses work. The first thing one should ask while starting a business is whether they need an app for it. For an on-demand venture to be successful, a mobile application is of vital importance. It will help your users to understand more about your offerings and benefits that you provide.

The next thing to take care of is the role of app in your business. If it occupies a major role in your business, your app has to be user-friendly. You have to add advanced features which should tempt users to avail your service.

Therefore app is a requisite to provide glitch-free services. You have to find an app development company for building an unparalleled app for your business.

Some of the advanced features you can include in your app are as follows,

Social Media Login

Your users can easily sign in using Facebook or Google without entering their email or other details.

Select Car Models

Your users can select the type of car they wish to hire from the various car models.

Toggle Driver Availability

This feature allows drivers to work at hours that are comfortable for them. They can indicate their availability with the toggle option.

Work History

Customers and drivers can check the service history and can also check the details of their service requests.

Live GeoTracking

Your customers will have the comfort of changing or canceling a booking at any time

In a survey by Mordor Intelligence, the global car rental market is estimated to reach a Compound Annual Growth Rate(CAGR) of 17.52 % between the period 2018-2023.

Get your hands on an unrivaled car rental app right away and start making money instantly.

Author

Marketing is my soul mate and writing is my side kick. Using my writing skills to share the knowledge of app development and upcoming technologies.