Why is there a shortage of rental cars in the US?


Why is there a shortage of rental cars in the US? That is because the shortage of semiconductor chips that has held up auto manufacturing persists, leaving rental car companies to operate with lower inventory after they sold off chunks of their fleets in the early days of the pandemic. Building that stock back up has been more difficult than expected.


Who is the USA biggest Car Rental?

Enterprise Holdings, which includes Enterprise Rent-A-Car, National Car Rental and Alamo Rent-A-Car is the largest company. Its annual revenue totaled $22.5 billion in 2021 according to Global Data.


What is the most popular car rental in USA?

So what are the winners—and the losers when it comes to rental car companies? Enterprise ranked highest in overall customer satisfaction for the second year in a row, followed by National and Alamo in third place. “Enterprise's chief strength is delivering value for the price paid for the rental car,” says Taylor.


Why is there such a shortage of rental cars?

That is because the shortage of semiconductor chips that has held up auto manufacturing persists, leaving rental car companies to operate with lower inventory after they sold off chunks of their fleets in the early days of the pandemic. Building that stock back up has been more difficult than expected.


Are rental cars still scarce in 2023?

Through 2023 at least, limited vehicle availability will continue. However, most experts report some recovery on the horizon. There were finally early signs of increased allocation to rental fleet channels in fall 2022. Operators still need to be clever in how they source cars as we inch toward supply recovery, though.


What is the demand for rental cars?

Worldwide demand for car rental services is expected to increase at a CAGR of 9.6% during the forecast period (2023 to 2033). The global market for car rental is set to hit US$ 200 billion by 2033. North America held 52% share of the global market in 2022.