Market Trends of Russia Car Rental Industry
This section covers the major market trends shaping the Russia Car Rental Market according to our research experts:
Online Booking Segment Likely to Drive Demand in the Market
Online booking is dominating the Russian car rental market in terms of revenue in 2021 and is projected to grow during the forecast period. The rise in the number of smartphone users across the country to carry out a variety of activities such as online booking and vehicle tracking is witnessing major growth in the car rental market. In 2021, the number of smartphone users in Russia will reach around 110 million which is likely to increase the use of car rental services across the country.
Major car rental companies across the country such as Delmobil, YouDrive, Belka Car, and Yandex Drive upgrade smartphone applications for online booking and update the application for ease of use. For instance, In 2021, Yandex Drive upgraded its mobile application to provide IoT features that monitor vehicle movements, provide driving profiles and identify dangerous driving.
Online booking offers extra features for real-time monitoring of a rental car's operation, performance, and maintenance. The online booking platform offers vehicle tracking, route map and traffic updates owing to which the plaform gaining more popularity acorss the country.
Short Term Rental Service Likely to Hold Dominant Share in the Market
The short-term duration of Car rental is used for short trips, tours, and journeys. This type of rental duration is also applicable for local usage, and short-distance outstation journeys.
Short-term car rentals have become a popular alternative to ownership and to continue building on this momentum, car rental companies have had to become much more competitive by offering greater options, flexibility, and subscription-based services.
With smartphone apps, rental services have entered a new realm of possibilities to facilitate this mode of short-term car rentals. Vehicles are collected and returned at several possible predetermined spaces for durations that are measured in blocks of 1 hour or 30 minutes. The entire transaction can even be completed on the phone without any human interaction.
Many players are launching flexible plans to provide customers with a wide variety of options. For instance, In March 2021, Europcar Mobility Group launched a brand-new range of subscription offers for companies, allowing fully flexible vehicle rentals with 3 offers, 'Flex', 'Superflex', 'DuoFlex'- which are alternatives to fixed-term leasing or ownership, offering the convenience of a monthly subscription.
With car rental industry offering several vehicle subscription models to meet the expectations of customers, it is noticed that higher demand for in-city travels vs outstation visits, as well as a significant emphasis on shorter-term subscriptions to help market to grow significantly over forecast period. The above mentioned developments in the market to drive demand in the market over coming years.
