Why do some #carhire companies go banckrupt
Competitive advantage
If you are not used with the concept of competitive advantage stop reading this article, search on Google for the words "Competitve advantage" and start studying becasuse in the business of #rentacar as in any other type of business having a competitive advantage is a determining factor if you want your business to succeed and even more important, at lease for me as I do not like to be juest one more in the crowd, standing out from the crowds.
As we all know the #carhire business is all about renting carsand all your competitors do the same, they rent cars to their customers (I will talk about buying and selling cars in another chapter).
I will give you the example of Montecar www.montecar.es in the implementation and development of wich I was involved and now it is a big hit.
I my memory doesn´t fail I have met the owners of the company on June of 2020 (I think that it is not necessary to remember you that the only thought of opening a car hire company in those times was a simptom that you must go to the psychologis or you simply want to lose money, it was not the case). The panorama was this, I had in front of me two motivated persons, an office in wich there was not even a desk, two Mini and myself wondering what I am doing here. After telling them what I was thinking about thier idea (all professionals should say what they think istead of what the client wants to hear), I started to analyze the competition (@Europcar, @Enterprise and @Avis, seemed an impossible mission), I visited their locations, saw what car models they had and the way they were acting with the customers. I invite you to have a look at the car rental fleet Montecar has and also read the rewievs on Google. As you can imagine Montecar is a succesful business as we had and stil have two important competitive advantages (not to mention the team work but about this I will write in another chapter).
Long story short, one of the reasons why a rent a car company goes banckrupt is the lack of understanding and implementation of one or more competitive advantages and please do not think that low rates are an competitive advatage as anytime can appear another player with lower rates and you will see soon all your fleet in your office without any booking.