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Rental Car Business Being Squeezed by Ride Sharing

Autonomous vehicles present major change in prices.

by Joseph Szczesny on Jul.31, 2018

Fully driverless vehicles, like the ones Ford plans to build for Lyft, may be the death knelll for some rental car companies.

The rental-car business faces a growing threat to its future from ride-sharing companies, according to a new survey from AlixPartners.

“Results from our survey suggest that the $30-billion U.S. car-rental industry is already undergoing a tectonic shift, with boundaries not just blurring but being obliterated between car-rental and ride-hailing and other forms of new mobility,” said Arun Kumar, a director in the Automotive and Industrial Practice at AlixPartners and a co-author of a new report focusing on the rental-car business.

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“The companies that survive this shift will be those that act now to transform themselves to be relevant in a world which seems to much prefer simply clicking on an app than standing in line at the rental counter,” Kumar said. (more…)