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When normal incentive structures go out the window, how do you keep key talent in times of severe financial distress?
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This could be car rental’s time for subscriptions — or another noble experiment.
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Lyft gets a ready supply of vehicles while Sixt gets an alternative outlet for its fleet — yet this partnership’s potential long-term evolution could be the true art in this deal.
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An imbalance of cars and the high cost to move them to where they’re needed, rentals booked for low rates in April, and higher incidences of fraud and damage plague the shift to local rentals during the COVID-19 pandemic.
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Advantage has suffered three bankruptcies and ping-ponged from five ownership groups with wildly divergent goals. Yet a slimmed down Advantage under entrepreneurial ownership just might have a chance.
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Bankruptcy proceedings can impact franchise contracts, fleet payments, and corporate accounts. When the dust settles, Hertz 2.0 will have ripples beyond the franchisees.
Read More →The outcome may not be as negative as feared, but there’s a greater issue for car rental companies in all this.
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With talk of a Hertz bankruptcy and federal bailouts still pending, where are the green shoots of a recovery for car rental, and who is best poised to take advantage?
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On the road to recovery, car rental operators can look to signposts in both demand and supply. Regarding wholesale fleet values, it’s going to get worse before it gets better.
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When one licensee’s parking lot needed sealing, an employee came to him and said, “Can we do it ourselves instead of paying a sealing company $20,000?”
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The pandemic will end, and business will roar back. But for now, operators are asking: “When do I close my office? Why are we open right now? How long can I pay 40 people?”
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Exiting a year of record revenues, the new year brings challenges from market disruptors, incumbent players new to the U.S. market, and new mobility models.
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