A decade ago, experts could probably win the argument that owning a vehicle was the best option available despite depreciation, insurance, registration, annual tests and maintenance. Recently, you can see a technological shift in consumer preferences towards alternate means of mobility that are easy and sustainable - and the reason being that global investment trends for purchasing vehicles are showing a downward trend as per the Q1-2022 Emerging Tech Research Report.
With shifting consumer preferences, flexible mobility available at their fingertips will redefine the global automobile landscape as they offer a number of alternatives to people moving away from owning. In this shifting trend, technology-driven companies will be gamechangers. In 2022, there has been an uptick in tech-based automotive companies getting into the game by harnessing high-tech innovation to meet the needs of a growing client base, especially the younger generation that is also paving the way for digital-first newcomers in the industry.
So, what are the future rental options?
Flexible solutions at fingertips
The car rental industry is realizing that smart apps are dominating the automotive space, allowing mobility of your choice at your fingertips. You can now use apps to view and book cars on the go. Also, more car rental companies are re-inventing rentals by putting customers at the centre and making that experience better.
Getting cars from dealers is also going to give a boost to the subscription model since it allows consumers to enjoy temporary ownership without worrying about additional costs.
Another growing trend of the future will be for dealerships
While you can get certified cars on-demand for customers, you are simultaneously empowering leasing companies to add more revenue to their existing models by enabling the products to be leased through the digital leasing platform which can be embedded seamlessly into the dealership network. This step serves as an integrated solution for the dealership and leasing companies.
With such innovations, the future of the car rental industry appears to be bright. The Market Research Future (MRFR) report predicts a healthy 14 per cent compound annual growth rate (CAGR) in the industry over the next few years. In the UAE, you can also see that the demand for car sharing/leasing services has logged an increase from 2 per cent to 5 per cent in 2022, especially because the younger generation are now looking for business models that offer the use of various vehicle choices seamlessly.
Also, according to a recent report, the UAE car rental market is expected to grow at a CAGR of 8.5 per cent on the basis of revenue for the period 2020-25.
Keeping in mind the future of the mobility industry, now is the time to respond with an array of potential options even if you are an established entrepreneur or just a new entrant in the mobility tech sector in the region. Provided you keep innovating and implementing smart tricks and make transparent and data-backed informed decisions.
Technological awareness and readiness may just prove to be a gamechanger.
