The Race to Connect Rentals

In the past decade, the rental car industry has evolved exponentially. We have seen the rise of EVs (electric vehicles), AVs (autonomous vehicles), and consolidation and strategic alliances in the marketplace. What’s more, we have reached the inflection point where legacy systems are no longer an option, as digital transformation and MaaS (mobility-as-a-service) are taking hold in an era of hyper personalization and high customer expectations.

This was a conversation I had recently with Julie Shainock, managing director, travel, transport & logistics, Microsoft, who says, “There are these evolving customer expectations out there. They really want a more frictionless, touchless experience as they start to move forward. You come off of a long trip and you get into a line. They don’t want to do that.”

She and I talked about several large trends in this space, many of which are covered in a recent whitepaper Microsoft coauthored with Amadeus about how technology is driving the future of the rental car industry. Let’s unpack some of these trends now.

Strategic Alliances

The first trend Shainock points to is the fact many rental companies, automotive businesses, and tech companies are creating strategic alliances that are set to transform how the rental industry does business. She points to a few big ones: Uber and BMW and Hertz and Tesla, as Hertz is moving directly into using an EV fleet and is delivering education to help them drive an EV car as well.

“Sustainability is the demand today, as opposed to an afterthought. That is a key thing as we start to move forward,” Shainock says.

She says there are also many strategic alliances around software-defined vehicles and being able to deliver software-over-the-air. For example, Lynk & Co., and Ericsson are two companies that are huge in this software-defined vehicle environment.

https://connectedworld.com/the-race-to-connect-rentals/