Trends in the Car Rental Industry: Prepare for Changes

The car rental industry is undergoing significant changes primarily because of technology and AI, but that’s not all. Read on to learn all about the upcoming trends – the future is closer than you might think!

1. Electric Vehicles and Sustainability

Electric vehicles (EVs) are becoming increasingly popular worldwide, and this trend will undoubtedly reach Serbia in the next few years. 

Unlike conventional cars, electric cars run on electricity, meaning their batteries need to be charged after a certain mileage. Although electric cars can be charged at home (which takes about 10 hours on average), to enjoy a drive without inconvenience, charging stations (where you can charge to full in 30-50 minutes) must be installed on most, if not all, major roads in Serbia.

There is no reason to doubt that the infrastructure for EVs will improve in the next 3-5 years, especially with the increasing presence of tourists and visitors in Serbia who use such vehicles. 

According to the European Environment Agency, the number of registered electric cars in Europe is growing yearly. Electric vehicles do not emit harmful gases like fossil fuel, reducing air pollution. Additionally, they are cheaper to operate due to lower energy consumption and more straightforward to maintain.

The leading players in the electric car industry are currently Tesla, Nissan, and Volkswagen. 

Tesla leads the market with models like the Model S and Model 3, while the Nissan Leaf is considered one of the best-selling electric cars in the world. On the other hand, Volkswagen is investing enormous resources in developing its EV line, including the popular ID.3.

2. Car Sharing

Imagine being able to borrow a car from your neighbor when you need it. 

That's the essence of car sharing through peer-to-peer platforms. This rental model is similar to short-term car rentals but differs in that anyone can rent out a car, not just rental agencies.

Suppose you need a car for a few hours to do some shopping. You would go to a car-sharing website or app, find a vehicle that suits your needs and is nearby, and "borrow" it for those few hours. Everything related to the agreement, payment, and insurance is handled through the app or platform, with some of the most well-known being Turo, Getaround, and Zipcar.

This car-sharing trend is already widespread in major cities worldwide. 

Research shows that the number of users of peer-to-peer platforms is constantly increasing, which is not surprising given that many car owners see this as a way to earn passive income. 

In Serbia, there is potential for this trend to take hold, especially in larger cities.

3. Autonomous Vehicles – Driverless Cars?

While it may seem like science fiction, this technology is getting closer to reality. 

Autonomous vehicles use a combination of cameras, sensors, and AI algorithms to detect their surroundings and navigate. They are equipped with advanced systems that allow Level 4 autonomous driving—without human control.

According to a McKinsey & Company report, autonomous vehicles could account for up to 15% of new car sales by 2030. Many companies, such as Tesla and Waymo, are actively testing and developing this technology. Autonomous vehicles could reduce the number of traffic accidents by eliminating human error. They also optimize routes and reduce traffic congestion.

The leading players in this industry are Waymo, Tesla, and Uber. 

Waymo, a part of Google, is leading the development of autonomous vehicles, while Tesla is developing advanced autonomous driving systems alongside its electric cars. Uber is investing in autonomous vehicle technology to enhance its transportation services.

Fully autonomous vehicles will become increasingly prevalent in the next 10 to 20 years, especially in developed countries. In Serbia, the introduction of Level 4 autonomous vehicles will likely come later, but it is undoubtedly on the horizon.

4. Digitalization and Artificial Intelligence (AI)

Digitalization and AI are already transforming the car rental industry. 

Car rental companies increasingly use advanced software solutions to improve their services and enhance customer experiences. They use programs for easier fleet management, better vehicle tracking, and cost optimization analytics, which benefit companies that lease vehicles through operational leasing.

AI technology is also finding growing applications, such as developing chatbots and virtual assistants that can quickly and efficiently respond to customer inquiries. 

According to Gartner, 85% of customer interactions will be managed without human intervention by 2025. This technology is already present and rapidly expanding. In the next five years, most car rental companies will likely use digital and AI solutions to improve their operations.

Some car rental companies in Serbia, including BizRent, already use digital platforms for reservations and vehicle selection.

5. Changes in Customer Habits and Expectations

With the industry's development and the emergence of new trends, customer expectations are also changing. Today, customers want a fast, simple, and personalized experience. 

For example, renting a vehicle used to take several hours. First, you had to get to the car rental office, fill out the paperwork, find and pick up the car, etc. 

Nowadays, companies offering quick and easy services will have the advantage. Car rental companies must adapt to these expectations and habits to provide the best service. 

They should offer different rental options, including short-term and long-term rentals, a wide selection of vehicles, and a streamlined reservation process.

Join the Future with Us!

BizRent is here to provide you with the best car rental service in line with the latest technologies. 

Choose us and enjoy driving electric, hybrid, or standard vehicles and the benefits of digitized services. Whatever your needs, BizRent has the right solution for you! We also offer vehicle delivery to your desired address as an additional convenience. 

Don't waste time—reserve your vehicle today!

‍