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by aneth4
4957 days ago
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Airport car rentals tend to be pretty cheap (<$200/wk), available, and high quality. This poses a problem for any company attempting to "disrupt" the industry. AirBNB is competing with high priced hotels that often are booked and an existing inefficient P2P subleasing business. Uber is competing with taxi services notorious for poor responsiveness and frequent gaps in availability. I don't see the same room for disruption in the airport car rental market, but there is likely some room for innovation. Don't count on Hertz and Payless quaking in their boots any time son. |
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Rental car companies are the largest buyers of new vehicles in the world, and more importantly the largest sellers of used cars. What's your strategy in those areas? What's your cost of working capital going to be? Ditto with insurance, these companies generally self insure the collision, can your startup afford to do that?
Then there's counter space at the airport. These generally come on the market rarely and at a different time and process for each airport. How are you going to compete when your lot is a twenty minute shuttle ride, and your competition has a lot in walking distance from the terminal?
I'm not saying it's impossible but the barriers to entry are high.