Digitization – The Road Ahead For Car Rental Business

The car rental business in India is indeed a promising market with both the organized and unorganized sector in play. The dominance of the unorganized sector is attributed to its service parameters like quality of service, reliability, transparency in price, etc. The need for a shift from the unorganized to a more structured and organized sector has been rooted towards the emergence of online car rental system. The estimated total market size of this Industry is about $9 billion and about only 6-7% of it is organized (Source: Ken Research). Over the past few years, this market has seen a phenomenal growth and is at present, growing at the rate of 15-20%.

The lack of good quality public transport system has led to the apprehension of the taxi and car rental operators in our country, where mobility options are profuse. With the advent of technology, the taxi aggregators and car rental businesses have found a way to operate their business in an organized manner. The online car rental market has made its presence felt in the metropolitan cities where the volume of bookings is high. The vendors can simply manage their phone bookings through an online car rental system, rather than a registry, making it easier to manage their various cabs.

The app-based technology is driving the market towards this purpose lately with focus on convenience for the end user. Customers today, are more tech savvy and prefer cab bookings done through an app than through the traditional way of physical booking. This saves time, minimizes effort and reduces hassle, thereby providing ease of use and in turn bringing about overall customer satisfaction.

This system is totally digitalized with features like live tracking to display vehicle location and car details along with the ETA. The car rental businesses get to manage cab bookings, view on-going trips and add a new cab to the circle whenever required. Moreover, the customer will get to view details in relation to the car booked with an option to provide feedback and post an enquiry besides the ease of renting a cab whenever you please.

In the presence of such a structured car rental booking system, companies can make use of this seamless telematics technology to scale up their business and operate resourcefully. Car rental will soon be the next engine of growth for the travel industry provided there is constant innovation to cope up with a rapidly changing business environment.                                                             

                                                                                  Article By:
Parinitha K.

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