Weak Demand and On-Demand Services Hurting Car Rental Companies
Photo Credit: Strong competition and reduced demand for rentals is hurting the car rental space. A promotional image from Avis Car Rental's Facebook page is pictured here. Facebook / Avis Car Rental
Skift Take
Car rental brands are losing customers to ascendant ridesharing services. As they become more nimble and technology-focused, however, car rental companies should be able to regain some share in the ground transportation marketplace.
Car rentals have fallen out of favor with many travelers since new ground transportation options have emerged in recent years.
Competition aside, a variety of issues central to the business model of the car rental industry are making it more difficult for companies to maintain stable corporate growth.
Hertz Global Holdings took a major financial hit on Tuesday when its stock plummeted more than 50 percent after a disappointing earnings release revealed that its earnings dropped by $101 million year-over-year in the third quarter. The stock has since bounced back, but weak fundamentals aren't getting much better for car rental companies.
"I want to acknowledge and take personal responsibility to the fact that I underestimated the depth and the breadth and the complexity of the transformation we are now undertaking at
