The emergence of driverless cars will also help car rental platforms to grow in the future. Market players are coming up with various strategies to increase their market share in domestic as well as international markets. Investors are also eyeing opportunities in the industry to gain optimum returns. In its recent report on the global car rental market, Allied Market Research states that the market is expected to reach $164,335 million by 2022, registering a CAGR of 11.6% from 2016 to 2022. Following are the trends taking place in the car rental industry that would shape the industry in future.
Rebranding: A Wise Strategy to increase Market Share
Car rental companies are rebranding themselves to adapt as per changing market conditions. JustRide, a Y Combinator-backed self-drive car rental service announced that it rebranded itself as Drivezy. This move is a part of strategy of the company to transition from an aggregator model to a marketplace platform. The company also plans to become a peer-to-peer car sharing platform. The individuals will list their cars on the app and it will be micro-leased by Drivezy.
After the two years of service, growing on both demand and supply side, JustRide gain a reputation among serving customers for good service. Then the company transitioned to marketplace model. Ashwarya Singh, CEO and co-founder, Drivezy stated, “After getting selected by Y Combinator and Google, we have investors from around the globe. So, keeping the global perspective in mind and our future plans to expand, we needed a dotcom name.” He further stated that rebranding could have taken place after shifting to marketplace model a year ago, but associating JustRide with a new brand would have been difficult for people. The company is aiming for up to 35% growt