USA Fleet Solutions Blog

Changes in the Rental Car Industry: Rent-A-Car

A new mobility paradigm is just beginning. City dwellers have innumerable choices of transportation — car sharing, ride hailing, scooters, bikes and others. Some original equipment manufacturers (OEMs) state that they are not car manufacturers anymore but mobility solution providers. This changing scenario represents a unique opportunity for businesses in the rental car industry to step up and become dominant players. Rent-a-car companies have the channel, the brand and the relationship with end customers needed to succeed in today’s world of connected vehicles.

Using Telematics Data for Connected Car Strategy

Leading rent-a-car companies have a connected car plan in place because of the many benefits that telematics solutions present. Most often they have two objectives when approaching connected car telematics solutions:

  1. Optimize challenges in their current operations and commercialization channels
  2. Get prepared for new monetization scenarios and business models based on the data they can gather through telematics

Rent-a-car companies usually have two lines of business: B2B (business to business) and B2C (business to consumer). In B2B, they rent fleets for other businesses. In B2C, they rent, typically passenger cars, to general consumers. The B2B model normally implies longer rental periods and the benefits of using telematics are similar to the ones in the leasing and fleet management industry.

Rental Car Operations Improvement

A rent-a-car company has a multitude of processes that can be grouped in two categories, depending on the vehicle state: on rental and off rental. On rental is the period of a vehicle when the car is rented out by a customer. It starts when a driver rents the vehicle and ends when she/he returns it and gets billed.

In the off rental state, the vehicle is not generating revenue and the objective is to optimize all the processes from the driver returning the vehicle until is ready to be rented again. Overall, the goal is to make the process efficient in terms of cost but also in duration.

The ROI of using telematics depends heavily on the automation and data used.


It is easier than ever for rent-a-car companies to realize the potential of what telematics can do for their business. Studies performed by Geotab with rent-a-car customers indicate that the ROI, taking into account all the scenarios, can represent more than 20€ (or $23 USD) per vehicle each month on savings. Beyond this, the large amounts of data that can be gathered for each vehicle provides a unique opportunity to achieve new revenue streams by monetizing relevant information in the industry, while increasing loyalty by providing a better customer experience. To learn more and request a demo, contact us.

Posted in: Customer Service, Fleet Management, Telematics

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