I’m thinking the car-rental business should be a major cash spinner. Only a truly arrogant and stupid CEO could screw it up.
they have key, irreplaceable real-estate at airports and such
they can mass buy cheap, standardized cars, probably on very good terms. When cars are not needed (as we saw in Covid) they can easily liquidate basic models
enterprise management operating software is highly standardized
Every customer must guarantee payment with credit card - no credit risk
they can flex to enormous fees during high-demand periods
they can add in all kinds of hidden charges, like airlines do
Americans increasingly can’t afford to own, so they rent instead. From Airbnb to car-shares, the “lease economy” is real thing
1. It’s highly competitive, and very difficult for individual companies to sell themselves as a premium value to customers.
2. You’re renting an asset on a short-term basis, and your customers have no incentive to treat those assets well.
3. A big part of your original customer base — business travelers who rented cars at airports on business trips — are now using Uber and Lyft instead.