More and more Americans are embracing the culture of renting cars instead of buying. According to research, around 8 million cars were rented in 2020. This figure is expected to reach 10.12 million by 2026 as more and more people rent cars to commute to work and business.
Technology has disrupted most industries, and the car rental industry is no exception. Let’s see how technology has made car rental easier.
Renting a car used to be a long and tedious process before the advent of technology and the development of online booking platforms. People lined up and sat at dealerships for many hours, filling out paperwork and trying to meet all the requirements.
Today, technology has made booking easier. Whether you want to rent a car for business or for your daily commute, you can explore your favorite models and book online. Dealers also have it easy. The technology enables them to meet high customer demand and deliver vehicles to customers’ doorsteps.
When Uber and other ride-sharing services started, most people thought they would affect the car rental industry. And while they had a small impactthis is insignificant as most people still prefer to hire private vehicles for extended private use.
Some car leasing companies have tapped into the newly created market to offer carpooling services. In this way, car rental companies have joined the ride sharing industry and gained access to a larger market, all thanks to technology.
The rise of mobile apps
Mobile apps have revolutionized most industries, including healthcare, automotive, travel, tourism, and government services. The car leasing industry has also had its share of benefits from apps: customers can use a car rental calculator app to estimate their monthly payments. On the other hand, dealerships can use mobile apps to track payments, generate invoices, send reminder emails, and track late payments.
Connected Vehicle Technology
At the height of vehicle-related crimes such as carjacking and car theft, the United States Department of Transportation (USDOT) launched the Connected Vehicle Program to address the problem. Automakers, transportation agencies and smartphone developers have collaborated to create a connected communication program that allows a vehicle to “talk” to nearby cars or mobile devices. Car dealerships and renters can track stolen vehicles with GPS tracking. Car rental companies can also monitor the location of all their cars at all times.
Self-driving cars offer several advantages. They reduce traffic accidents and provide easy access to transport for people with disabilities. Automakers are working hard to deliver self-driving vehicles to the public. Although some people are still skeptical about driving an autonomous car, it is great technology that will only get better in the years to come. Uber has started testing self-driving cars in Pennsylvania, so it won’t be long before they become a regular thing on US roads.
Technology has had a positive and negative impact on the car rental industry. People can book cars more easily and conveniently. Car rental companies can also use custom mobile apps to generate invoices, track payments, and remind renters to make monthly payments. Additionally, connected vehicle technology has helped reduce car theft by tracking missing vehicles.
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I am Mariana – An ardent reader and avid writer at Contentist. Due to my exquisite love for meaningful lexicon, I collaborate with a team of professionals to cover a variety of niche articles as well as well-researched blog posts and many more.
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