Auto Rental News
MenuMENU
SearchSEARCH

Car Rental Q&A: What's the Biggest Threat to Car Rental in the Next Year?

We asked several International Car Rental Show attendees for insights into their businesses in 2016 and the industry in general.

by International Car Rental Show Attendees
May 12, 2016
Car Rental Q&A: What's the Biggest Threat to Car Rental in the Next Year?

 

3 min to read


For this issue's car rental Q&A, we asked several international car rental show attendees for insights into their businesses in 2016 and the industry in general.

Q: What do you think the biggest threat to car rental will be in the next year?

Rudy Callegari, co-founder of Edge Auto Rental:
“Uber, Lyft.”

Ad Loading...

Brad Kjar, director of operations at U-Save Car & Truck Rental:
“The industry getting in the way of consumers’ —specifically millennials’ — adaptation of technology and not being able to keep up with tech advancements: The rise of Uber and Lyft demonstrates how the taxi industry failed to meet customers’ expectations. The industry will have to develop and improve its digital connectivity and ease of use for our consumers or another player will enter the market with a better way to do it for us.”

Jordi Rivero, chief product officer at Mex Rent-A-Car:
“Speaking for Mexico, the competition is quite tough. You can find daily rates under $1, and there are even some locations that have a weekly rate around $3. Also, another threat is the high prices that the insurance companies charge us in order to be able to sell counter products.”

Roger LaTour, general manager at Walser Automotive Group:
“In the local rental market, the manufacturers have been aggressive to push dealership rentals. They apply specific rules and incentives that make it difficult for local car rental operators to accommodate, thus providing a more convincing rental model for the dealership owners.
“Available fleet programs for the smaller operators: As manufacturers tighten up production, both retail as well as commercial, demand continues to be strong, yet rental fleet purchases at competitive incentives are harder to qualify for.

Shantelle Ford, rental manager at Tom Wood Rental:
“In a dealer-based rental program, more manufacturers are requiring 100% branding for their loaners/rentals. What if you have a Jaguar Land Rover store as we do? It’s $60,000 to $80,000 for a Jaguar, and you can only charge $45 per day against warranty.
“I support the new safety recall law that protects the consumer, but it also protects rental companies; it’s just hard for some to see. I believe we will see more and more recalls, which means more grounded vehicles.”

Q: Do you see your business growing in the next year?

Callegari:
“We are growing as we cater to business-to-business and the film market that shoots in New York City. With the economy being strong, low gas prices, and low interest rates, it’s a good time for Edge Auto Rental.”

Ad Loading...

Kjar:
“Yes, U.S. and international growth are expected to be very strong. Industry consolidation has left a void for our product, and demand has not been stronger.”

Rivero:
“All areas of our company are growing, especially the commercial one. With our new business relationship with Expedia Group, Mex Rent-A-Car is acquiring an extra strength. Our new affiliate program is getting bigger and delivering the Mex brand in different countries in the Caribbean and South America.”

LaTour:
“We believe our growth opportunities can occur by outperforming all other rental car operators as it relates to the customer service index (CSI) and exceeding first-time renters’ expectations. Having the right cars, the right people, and the right training makes this a game-changer for us.

Ford:
“Yes! We currently are a service/insurance replacement rental company that serves our dealerships. In the next few months, we will open a franchise location (Sixt) in our local market. We will still serve our dealerships, but we can also serve the retail market. It is a game-changer for us.

Subscribe to Our Newsletter

More Rental Operations

green and blue bar graphs compare fleet sales June 2025 versus June 2026
Fleet Acquisitionby Martin RomjueJuly 8, 2026

Rental Car Fleet Sales Show Mid-Year Strength

June gains ensured rental fleets closed out the first half of 2026 in positive territory.

Read More →
Close up of a row of white CUVs in the Surprice Mobility fleet at the Milan airport.

Surprice Mobility Opens Corporate Rental Station at Milan Malpensa Airport

The Milan opening is part of Surprice Mobility's broader strategy to expand its corporate operations while increasing the use of technology across its network.

Read More →
Julian Gritsch with an MBA class in a classroom.

Brazilian Executive MBA Targets Growing Domestic Rental Car Industry

Rental car companies face a unique combination of challenges that are rarely addressed in traditional programs.

Read More →
Ad Loading...
Green Motion team with banner bearing Japanese flag.

Green Motion Expands Into Japan With Master Franchise Agreement

Japan's tourism industry, business travel market, and demand for vehicle rental services are reasons the country represents an important market for the company.

Read More →
ACRA Chairman Sharky Laguana on stage at the ICRS event in Grapevine, Texas.
Legal & Legislativeby Martin RomjueJune 24, 2026

ACRA Carrying Fuller Industry Load As AI and EVs Lurk In Future

The leading car rental professional business group details an active legislative, regulatory, and macro-trends agenda affecting car rental operators.

Read More →
Light blue horizontal bar graphs on a chart showing World Cup-related rental car booking trends.
Rental OperationsJune 23, 2026

World Cup Travel Data Shows Longer Car Rentals and More One-Ways

A recent analysis of FIFA bookings found varied demand patterns that influenced rental car pricing.

Read More →
Ad Loading...
Side view of ICRS speaker Sanchit Garg at podium in front of a floor lit red curtain
Rental Operationsby Martin RomjueJune 22, 2026

A Leveling Force: AI Morphs Into A Rental Car Profit-Seeker

Revenue managers can’t match the emerging AI tools gobbling lots of data that could counter the competitive race to the rate bottom.

Read More →
Photos of Martin Romjue and Denis Gjoni on opposite sides of large headline for the video.
Rental Operationsby Martin RomjueJune 17, 2026

Stop Losing Money On Rental Tolls

Regardless of your rental fleet size and structure, fleet managers, executives, and owners can gain valuable insights into an often-overlooked area of fleet operations.

Read More →
Richard Lowden gesturing on stage in front of a red curtain at the Gaylord Texan Resort near Dallas.
Rental Operationsby Martin RomjueJune 12, 2026

Rethink The Future To Avert A Race To The Bottom

Rental car operators heard a sobering industry message and a stern challenge at the close of the International Car Rental Show.

Read More →
Ad Loading...
John Possumato holding microphone while asking a question during a live conference session at the ICRS Show.

DriveItAway, Free2move Plan Shared Fleet Program for Independent Rental Fleet Operators

Vehicles would be placed with participating rental operations to support car renter demand and provide additional fleet capacity.

Read More →
Ad Loading...