Car Rental Industry Consolidation Changing the Industry Dynamics
Four years before retirement, my business was mobile auto washing, and I franchised the firm across the nation. A lot of the businesses like Hertz, Dollar, Budget, Star Chauffeur Cars, and Enterprise Rent a Car had their workers wash cars to pick up the stragglers.
When Monday rolled around and they had to have all their autos cleaned, they could barely manage it. The other places found that we had the most productive system for cleaning the automobiles and the lowest price as well. What I am really saying is that, increasingly, the car rental business is getting into the picture, providing alternative transport. They do what works, but it’s also exceedingly competitive.
Talking of rivalry, size does matter, particularly in the number of locations, as well as the rising numbers of the automobile-leasing public. This is the reason there has consistently been a decent number of consolidations in the sector. I wonder if there may just be two or three rental car services in the whole of the United States: It is starting to look like that.
To prove what I’m saying, look in your phone book, in case you doubt me and believe there are several car-rental agencies even in your region, no matter where you’re at. Nonetheless, the big boys are uniting, and they mean business. They’re plotting out their national and international growth strategies as we talk, and unbelievable rivalry and consolidation are driving much of that.
I certainly hope this is not the case because the manufacturers do not need to lose their biggest customers. I bet the car manufacturers are just concerned about this because car-rental agencies are also large buyers of new automobiles. Actually, in the past, high positions have been occupied by many manufacturing company executives in car-rental agencies. I am hoping you’ll please consider all this and believe it.