According to Bloomberg.com, Uber accounted for forty-three percent of ground transportation transactions expensed through Certify in early 2016, whereas rental cars accounted for forty percent. Many more professionals are preferring to use Uber or Lyft as opposed to rental cars and taxis.
With the cost of riding an Uber or Lyft Inc. costing much less than the average rental car booking, along with the convenience factor of paying and hailing a ride efficiently, the car-rental industry is definitely impacted. Robert Neveu, President of Certify, says “the convenience factor is huge, and we’re seeing it change the habits and behaviors of our users.”
Despite car rental companies seeing a decrease in demand, others are searching for different ways to offer more than just daily rentals for travelers. Enterprise Holdings Inc. debuted its new Carshare program offering hourly rentals shortly after Avis acquired Zipcar in 2013. Hertz Global Holdings Inc. recently decided to invest in Luxe Valet Inc., a San Francisco start-up that provides on-demand parking services through a mobile app.
According to Bloomberg.com, “General Motors Co. said in January it would invest $500 million in Lyft, the second-biggest U.S. car-booking company. As part of their partnership, GM and Lyft are developing short-term car-rental hubs in some U.S. cities.” This way, some automakers are able to showcase their vehicles to prospective customers, while travelers can benefit from short rentals and hopefully diverge from the Uber competition.