As for the future, 24% of those surveyed said they will use ride-hailing to replace traditional car rental, and the number is even higher among Millennials and Gen Z, at 35% and 38% respectively. - Photo via Uber. 

As for the future, 24% of those surveyed said they will use ride-hailing to replace traditional car rental, and the number is even higher among Millennials and Gen Z, at 35% and 38% respectively.

Photo via Uber. 

A survey of more 2,000 U.S. adults who have rented a vehicle in the past year found 35% of them used ride-hailing services in lieu of car rental, and another 24% said they will use ride-hailing instead of car rental in the future.

Conducted by AlixPartners in May, “The Future of Cars for Hire” survey found that 67% of respondents rented vehicles for leisure, 21% for business, and 8% to replace their primary car while it was being serviced; the rest were rented for other purposes. Seventy percent of those who rented a vehicle rented it from an airport counter.

While 83% of those surveyed said they had a favorable view of ride-hailing, 72% said the same of traditional car rental. Additionally, consumers who replaced car rental with ride-hailing in the past year are three times more likely to use ride-hailing in the future than those who have not.

When asked why they chose to use ride-hailing, 50% of respondents cited parking issues and associated costs; 49% said it was easier being able to use ride-hailing apps; 44% said their trip was short.

In regards to peer-to-peer rentals, 63% of those surveyed said peer-to-peer rentals were less expensive than traditional rentals; 44% cited the ease of using an app; another 44% said there was a better selection of desired vehicles.

“I think what’s interesting is you look at the experience people get with ride-hailing, it’s 83% and rental car is at 72%, but carsharing is much less, it’s a bit surprising,” Arun Kumar, a director in Automotive and Industrial Practices for AlixPartners, said. “And I think some of it is due to lack of availability, not being able to sometimes get the quality of car you’re looking for.”

Respondents cited the following reasons for not renting cars in a traditional car rental scenario:

  • Renting a car is a laborious process (35%)
  • Add-on charges are much higher (34%)
  • Vehicles are not to my liking (20%)
  • Toll charges are very high (19%)
  • Customer service is poor (16%)
  • Billing is not accurate (15%)
  • Vehicle quality is not up to high standards (14%)
  • Can’t rent directly from an app (10%)
  • Other (11%)

As for the future, 24% of those surveyed said they will use ride-hailing to replace traditional car rental, and the number is even higher among Millennials and Gen Z, at 35% and 38% respectively.

Additionally, 48% of consumers who are aware of ride-hailing said they will make the switch to the app-based services if the cost were 20% less than traditional car rental. However, only 18% of respondents said they would be willing to purchase a ride-hailing subscription for a set number of rides.

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