Car rental and technology: the combination that makes a difference

The increasingly close relationship between the rental world and technology is becoming more and more of a focus when discussing the future of the automotive industry.

But what is, and will be, the real impact of telematics for those managing cars and corporate fleets?

Rental car insights in Italy

The Italian car rental market is steadily growing, registering significant numbers, especially in long-term leasing (NLT) for companies. In fact, as much as 87.5% of contracts in 2023 were signed with companies, while 12.5% were with private users.

The data related to contracts signed with companies confirms the increasing trend of businesses opting for rental rather than purchase, due to several factors, including the imminent switch to electric vehicles and various regulations on emission reductions. Hence, companies, dealers, and rental agencies need to maintain flexibility with their vehicles and be able to adapt to new technological innovations.

Corporate fleets at the center

The 2023 edition of the Corporate Fleet Barometer showed how owning a corporate fleet is essential for companies, both in terms of growth and employee well-being. 95% of those surveyed for the study revealed that they expect their fleet to grow in the coming years, also explaining the reasons behind the decision to increase or maintain the size of their corporate vehicles. In addition to the classic reasons, such as business growth and the development of new activities, new motivations are emerging:

– 44% of respondents stated that the corporate fleet is essential to attract new talent;
– 22% of respondents said they had considered offering company vehicles to employees who wouldn’t normally qualify for them;
– 17% intend to offer shared vehicles to their employees (car sharing).

Thus, this is becoming an increasingly common approach, both for economic reasons and due to the growing focus on corporate welfare.

Connected vehicles: a transformative force for fleets

The increase in vehicles used by different employees and drivers has led rental companies and businesses to opt for connected vehicles, i.e., cars equipped with various telematics systems that allow real-time data sharing from the vehicle to a centralized system. Updated figures for the past year confirm that 4 out of 10 companies choose connected vehicles for at least part of their fleet. This figure is in line with European numbers, even surpassing the average in companies with 100 to 999 employees (Italy: 55% – Europe: 47%).

Technology supporting rental companies

Connectivity plays a crucial role in increasing both business productivity and individual well-being. Real-time vehicle tracking, the desire to improve driver safety and gain insight into driving behaviors, and enhancing operational efficiency are the main reasons more companies are equipping their vehicles with telematic devices capable of delivering big data.

There are also many other benefits rental companies can derive from these devices. This was recently discussed during the last event organized by Fleet and Mobility. During the event, participants—who included various players in the automotive rental landscape—had the chance to participate in a survey on this topic. “What is the value of on-board telematics for a rental company?” was the question that piqued the interest of 162 respondents, revealing several other benefits of connected vehicles. Among these:

– reducing theft risk;
– vehicle diagnostics;
– recovery in case of delinquency;
– optimization of the claims process.

These topics are closely linked to insurance issues, which are becoming increasingly important for rental companies.

In conclusion, the increasingly close link between the rental world and technology is crucial in shaping the future of the automotive industry. The widespread adoption of connected vehicles represents a significant step forward, not only for companies managing fleets but also for the rental companies themselves.

In a landscape where flexibility and adaptability are key, investing in technology is the key to remaining competitive and providing cutting-edge service in the car rental sector.