How Would the Car Rental Industry Get Back On Its Feet Post Corona?

Car rental services were gaining momentum before the pandemic Covid-19 hit the world. Businesses were tapping into the potential market and raising awareness among people about the benefits of renting a car. Cars were an affordable and convenient option for the people who were not willing to invest in buying their own vehicles due to factors like lack of parking space, maintenance, and the price.
However, after the coronavirus took over the entire global businesses, things are likely to change for every industry, including car rental. The companies will have to change their operating methods and take some extra measures to regain the customer’s trust and bring back their business on track. As the virus is easily transferable from one person to another, and the surroundings, people are reluctant to use public transportation and carpooling services. In this scenario, the alternative of car rental in corona is likely to be preferred over other transportation options. It is just that the service providers will have to be very cautious of the customer’s welling and cleanliness in their vehicles.

Challenges faced by the car rental industry during/after Covid-19

As the world is in strict lockdown, only the essential business will be open, such as daily needs, groceries, and medical shops, along with the hospitals and government offices. Sadly, car rental in corona does not come under “essentials” and thus, the industry might have to face a low time in the coming days. Let us understand the challenges faced by the car rental business startups as well as the established companies.
  • Irrelevancy of location
    Vendors or service providers who have the garage on rent are facing financial issues as they have to pay the rent every month, in spite of bearing the losses in the market. This is also forcing the providers to shut down their businesses to save money. Besides, if the garage is not suitable, and the tenure of lockdown is increased with strict policies, the provider will have to suffer the losses, again.
  • Mobile Self-Collection, Unlocking
    Social distancing is the current biggest roadblock in the development of many industries. There are still many businesses that require the customers to visit them and interact face to face. These businesses ask for customers’ approval on paper, along with their signature and other relevant documents. The car rental service is also one of them. The rider/customer needs to sign the agreement, submit the copies of the license and other important documents at the store before picking the vehicle for a drive. In the present situation, this is another major challenge faced by the market.
  • Increased demand for deliveries
    During the lockdown and spread of corona, people are unable to step out of the house to get things and work done. This has increased the importance of the home delivery manifold. People are ordering daily essentials, food, and groceries online. And thus, in case they would want to rent a car, they would prefer home delivery for the same, instead of pick up option. The customer now demands the ecosystem where instead of walk-in first, delivery-first would be encouraged more.
    Read more on car rental industry post corona

Comments

Post a Comment

Popular posts from this blog

Why Should A Taxi Business Integrate Efficient Mobility Solutions?

Image
Mobile apps have proliferated every walk of life in current times. It is no wonder that the cab businesses have made massive inroads in this era. With Uber raising about  $11.5 billion  from 14 rounds of venture capital investing, company has shown the extent of profitability and potential in the taxi app business. Along with other providers like Lyft and Ola, it has made sure that the power is now in the hands of the 2 billion smartphone owners. This business model has opened up several layers of advantages to the end customer too. It is no wonder that  78% of the  respondents of a study are found to be very/somewhat satisfied with a taxi hailing service like Uber. Multiple Advantages for the Passengers Irrespective of the passengers’ location, they will always find a cab handy, to help them get to the destination easily. The maps-based and GPS-based tech solution ensures that finding the way or locating routes would be a thing of past. It also provides a lot of power to t
Read more

How to Attract More Drivers and Grow Your Taxi Network?

Image
A lot of people are looking forward to  Starting a taxi business  owing to its scope of tremendous growth. One can spike their taxi network and the return of investment in a short span of time, which makes it a great opportunity for ambitious entrepreneurs. The gateway to success in the taxi business is maintaining the supply of good drivers. Why is driver acquisition an important factor for a taxi business? Your business can grow like never before if you have a strong pool of drivers who can give high-quality service to the passengers. The challenging part here is to retain committed drivers and attract more to meet the passenger’s demands. Do you want to know how to attract drivers and grow your taxi network? Read on the strategies below to hire more drivers and stay competitive. Bonuses Bonus helps employees to meet goals, stay motivated and committed as per research in human psychology. Surge bonuses and sign-up bonuses are a great and quick way to att
Read more