Why a rental car shortage pleads for a ‘change of vehicle’

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“The propensity to travel has recently increased again, and right now we are seeing people claiming and looking for solutions and workarounds so that they can continue with their travel plans.”

As the car rental industry struggles to stay afloat amid a car shortage, MarketScale TV is exploring carpooling and carpooling innovations with a company that strives to reinvent the process of car rental. carpooling to be more efficient for all parties, better understand why this car rental shortage has implications across the mobility ecosystem and how rental companies, as well as OEMs, should strategize around innovations in carsharing.

Reece Griffin, Founder of MirrorTrip, a route change company and car rental website for one-way trips, spoke to Voice of B2B Daniel Litwin to explore how the car shortage is inadvertently accelerating innovation. in industry. MirrorTrip works to connect travelers with similar travel plans to turn the depreciated asset of an idle rental car into an asset, saving renters hundreds of dollars in return and return fees. reduce the hassle of managing vehicles at various locations for rental companies.

The global semiconductor shortage continues to create new domino effects for different industries; for the auto industry, OEMs cut auto production at the start of the pandemic as demand for new vehicles declined. To keep their business going, semiconductor chipmakers have looked to other B2B partnerships to stay afloat, including providing more to computer and mobile device companies. Now that demand for cars is on the rise, the lack of semiconductor chips means OEMs are struggling to meet that demand.

“The propensity to travel has recently increased again, and right now we are seeing people claiming and looking for solutions and workarounds so that they can continue with their travel plans,” Griffin said.

We are also seeing the car rental market struggling after COVID for similar reasons. After selling off a large chunk of their fleets to survive the pandemic financial crisis, car rental companies are facing increased demand and limited supply. Griffin explains how this has forced consumers and industry players to reconsider the traditional car rental process.

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