Image: RelayRides
RelayRides has made the decision to leave behind hourly rentals. It appears that the cost of providing rentals for an hour has outweighed the benefits for RelayRides. The company is now focusing on daily and weekly rentals, as this is where they have seen most of their growth. This means they will be more directly squeezing in on turf held by big boys, Avis, Hertz and co.
While this news may come as a disappointment to some, this decision was made based on their current trends of usage, with hourly rentals making up only a small number of the organisations carsharing ventures. In addition to low uptake, the high cost of installing hardware allowing users to unlock the car using a smartphone is too high to support hourly rentals. So what comes next in RelayRides’ pursuit of market share? Continuing to undercut larger corporations’ price models. This is something they are well equipped to do, with the costs of larger firms’ fleets being circumnavigated by collaborative consumption!
For the full scoop, click here.
