Why Does Your Car Rental Business Need A Mobile App To Stay Competitive?

Why Does Your Car Rental Business Need A Mobile App To Stay Competitive?

Local transport or on-demand taxi apps are a great solution to local travel needs. But, when it comes to long travel or inaccessible areas not many options of local transport can be found, car rental services stand out as the economical alternative to having a car at the point people need it. The growing travel and tourism industry and the increasing need for luxurious vehicles for business trips attributes to the significant growth of car rental services.

Despite the growth of the car rental industry hindered by the latest pandemic, the car rental market is forecasted to reach $223 billion by 2027 at a CAGR of 7%. The revenue generated by car rental services is projected to reach $104 billion by 2023 and increase by 3.49% by 2027.

The car rental market managed to recover losses due to the pandemic with technological advancements. In the same vein, mobile app development is an answer to several challenges that the industry is facing.

The challenges of car rental services clear up the air that venturing into the car rental business with mobile app development are important to achieve expected results and play catch up with the competition. Know more about how to start car rental business and drive success. In this blog, we will take a deep dive into the benefits that mobile app development brings to car rental services followed by the latest trends. Let’s dive in!


The benefits of building a mobile app for the car rental business

Mobile app development for car rental businesses has transformed the way services are delivered to the customers and businesses operated. Digital revolutionization brings a slew of benefits to businesses that -


Increase branding

A new car rental agency when making inroads into the market, they have a fewer number of customers and thus, low profit. The agency can serve the market better and answer the competition by creating a mobile presence. Developing the mobile app helps get the car rental business recognized by a large user base and stay connected with them.


Centrally manage care rental business

The car rental business involves managing a lot of things from a range of vehicles to maintain, maintenance costs, car rental charges, car rental bookings, and a lot more. Managing all of these things separately won’t allow car rental agencies to better control their business. With mobile app development, the agency can manage everything centrally from a single dashboard quickly. Easy access to information lets them handle unexpected situations easily.


Booking and price management

Traditionally, car rental service booking involves a lot of hassle that makes business complex to handle. When it comes to making the customers understand about price structure, things become a little tricky. The car rental mobile app development would help with mobile bookings where the customers can view the price structure in easy to understand format followed by discounts/offers, and then confirm the bookings with mobile payment. Easy bookings with no surprise fee better engage the customers.

Concentrate on core business

With mobile car rental solutions, the agencies can laser focus on their core activities that help in growing business by leaps and bounds. It relieves the business owner from spending a lot of time controlling and planning resources, bookings, and a lot more. The business focus solely on how they can achieve the desired goals for growth, conversion, and ROI.


Operation cost gets reduced

Mobile car rental services automate most of the aspects that were previously handled by human staff. For instance, the agency doesn’t need to spend even a single penny on vehicle management, reservations, price management, customer support, and others. Thereby operation cost gets minimized that ultimately increasing profits.


Increase user outreach

When a car rental agency is started, improving the rental service awareness beyond the neighborhood is all-important to increase user reach. The mobile app helps in informing a large user base about the quality services you offer, the latest deals, and rental agency whereabouts. It takes business beyond the local area and the travelers coming to the city can opt for booking from your car rental agency.


Improve user retention

Conventionally, car rental businesses cannot reach out to their customers personally and let them know about new services or the latest deals. The mobile solution works wonders in delivering the best experiences, gaining customers’ trust, and retaining users with customized deals or offers. The existing customers when receiving rewards for their loyalty to the car rental business, which brings them back to the car rental business whenever they have rental service requirements.


Facilitate real-time support and assistance

When customers take a car on rent and encountered any problem with the rental car, the mobile app is a great help for customers to get necessary support and assistance. Car renting apps allow customers to connect with rental agencies instantly for immediate needs and get served even at the roadside 24/7. It gives an edge to the car rental service business.


Guarantee secure payments

Having a mobile app for the car rental business means the enablement of mobile payments through multiple payment modes such as credit cards, debit cards, mobile wallets, or other payment gateways. It eliminates the customers’ need to carry a lot of cash in their pocket for car rental services. Mobile payments are secure and safe.


Make your business future-proof

Post-pandemic, mobile bookings have become a new norm, which compels businesses to get build a dedicated mobile solution. It indicates mobile car renting app helps businesses to step in with the customers’ needs for mobile bookings and payments. Ultimately, adopting new mobile trends make the business future ready.


Increase your income

Car rental app development is an expensive endeavor but when you start earning  based on the development investment, it becomes a better deal. The mobile car rental app is turned into a platform that allows car rental service providers to list the rental services and accept rental bookings through the platform. You can charge for service listing and a cut from every transaction that occurs through rental service bookings. It creates another stream of revenue for the business. Estimate for your car rental app development cost and then compare it with expected profits to know if it will be a lucrative venture or not.


7 popular car rental mobile apps that increased business ROI

Many car rental businesses have made the most out of the mobile opportunity to grow and flourish their business. A quick at all those applications-

- Hertz car rental app

- Zipcar

- Skyscanner

- Hotwire

- Zoomcar

- Avis

- Budget


Latest rental car industry trends to cut through the noise

Amidst fierce competition, keeping up with the trends is vital to stay ahead of the curve. Mobile app development is not enough. You can consider the trends to gradually enhance the app.



Nurture relationships with your customers by providing details to them based on their car rental service needs. For instance, personalized loyalty rewards, custom discount messages, and displaying price and vehicle options based on users’ profile makes the customers stay longer with the brand and delivers them a great experience.


AI-technology leverage

AI bots surpass human capability in analyzing users’ needs for car rentals and then recommending the best service. The custom pricing option increases sales and bolsters customer relationships.


Embrace IoT

Car rental businesses can best manage the vehicle when they can monitor vehicle condition, track fuel level, and keep tabs on vehicle location. IoT integration with the mobile app provides a real-time alert for maintenance and repairs which minimizes the risk of breakdowns.


VR is still ruling

Virtual reality-powered mobile apps help customers to get a feel of the vehicle, that’s interior and exterior before booking it in a realistic environment. It helps car rental agencies to better engage customers and increase sales.


Cloud computing and gamification

Cloud computing facilitates storing car rental service business-related data on the cloud from where it’s easily accessed and leveraged when required. The instant access to vehicle inventory, customer information, and rental history improves operational efficiency.


Closing thoughts

If you are in the plan of venturing into a new car rental service business to make huge money, don’t forget to invest in mobile app development solution. The car rental mobile application is crucial for your business success as it brings a slew of advantages to customers and businesses. From convenient car rental booking and mobile payments to hassle-free car rental experience appeals to the target customers. Car rental business benefits from reduced operational costs, improved workflow, and sustained competitive edge. It signals mobile app development is a prudent decision for car rental businesses that want to grow their business with exceptional services and outstanding experience delivery.