Much has changed in the car rental industry since the Covid-19 hit the marketplace. During the pre-covid time, the world witnessed a rapid change in the transportation sector, and new ideas like shared trips and mass transit were brewing over the realm of affordable and convenient commuting. 

As per Statista, the car rental industry worldwide is expected to grow by $110,894 million by 2025. The car rental business depicts huge market potential, but an ongoing pandemic crisis can influence the customer’s mobility preferences, which could eventually decide how the car rental business will perform in the coming days.

A decade ago, when the global economy was strangled due to recession, the car rental industry exhibited a disciplined approach to recover, and they did pretty well. Covid 19 is an entirely different scenario, and none of their previous strategies worked for the industry.

Many big players in the car rental business are partnering to fill the void in rendering their services to customers. Hertz Rentals reportedly signed a partnership agreement with Tesla Motors back in November 2021 to supply 100,000 Model 3S to Uber drivers. Incidentally, Hertz went bankrupt in May 2020 due to lockdown, but walking against the wind, somehow it is back in business with new strategies and survival tactics In another deal, GoAir partnered with Eco Europcar in April 2021 to launch rental services across 100 cities in India. 

Advancement in technology could be another key factor in propelling the car rental business. The car rental owners are observing an increasing trend of mobile apps and advanced technologies such as NFC (Near Field Communication) and car rental software.

Covid outbreak has not just impacted the travelers but even the manufacturers producing microchips for cars. Without these chips, cars are dysfunctional, leading to shortages in rental cars.

Defining a differentiated business strategy is more crucial for car rental owners to survive the Covid pandemic and car rental companies such as Miles and Avis have done this smartly. Miles, a German based car-sharing company, has extended their services from cities to suburban areas to encourage locals to take car-rides instead of public transport. 

In the coming days, the car rental business can see the government’s active role in accelerating its business growth. High emission of carbon dioxide and degrading air quality is a major issue faced by developed and under-developing countries. 

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