Private vehicle ownership to drop drastically by 2030, report predicts

As Millennials and Generation Zers continue to be dubbed the main drivers of the “rentership society” by experts, the concept of private vehicle ownership is being predicted to fall and will nearly be a thing of the past in a little over a decade, according to predictions from The World Economic Forum. Millennials and Gen Zers are less inclined to own things, including vehicles, and are shifting towards shared economies and paid services.

The car rental industry of course, is a significant part of the global shared economy. With consumers being exposed to more options than previous generations, comes an opportunity for car rental companies, who offer fleet management experience, and the knowledge to maintain vehicles.

Artificial intelligence (AI) technologies may soon provide more value to car rental companies, as advancement of the technology and use in the rental business could provide lower operating costs, greater efficiency and superior customer satisfaction.

By using AI-based technologies, demand for services can be predicted, allowing rental companies to stay ahead of the game and greater optimize fleet utilization. Not only will AI predict demand, but based on a vehicle’s usage, as vehicles can be analyzed beyond the mileage numbers and more accurately predict when a vehicle will require maintenance and/or repairs.

Managing revenues would also be easier, as AI could analyze car depreciation and report ideal times to de-fleet and sell assets. Rent prices can also be set to accurately reflect the demand for services. Rather than managers shopping rates and finding solutions through trial and error, AI tools could fully optimize pricing management, allowing managers to handle other tasks more efficiently.

As autonomous vehicles eventually come to market, rental companies may be able to use self-driving vehicles to offer such vehicles to customers, helping with daily tasks such as handling deliveries, taking care of pick-ups, or simply getting from point A to B.

Finally, rental companies can offer greater customer satisfaction with the use of AI. By analyzing a customer’s needs, while paying attention to details like pick-up time, destination, or requirements for child-seats and extra storage space, customer satisfaction is almost assuredly guaranteed.

Ultimately, AI appears set to play a greater role in rental companies managing operations and providing better customer satisfaction, which will play a key role in the long-term prospects – and potential growth – of the car rental industry.

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