Who Owns Whom

The Car Rental Industry in South Africa

Stephen Timm | South Africa | 22 September 2021

The Car Rental Industry in South Africa

The car rental industry has been significantly affected by the pandemic and resulting travel restrictions and decline in disposable income. The main business channels for car rentals are corporate, government, insurance replacement and leisure, and demand from all of these avenues declined markedly since March 2020. Car rental companies have been able to partially offset losses by reducing fleet, branch and employee numbers, and have benefited from an increase in second-hand vehicle prices. The industry’s fleet had more than halved by July 2021 from February 2020. The sector, which is described as mature, has been under pressure for the past two years as brokerages and online intermediaries have driven prices down.

Trends

Car rental companies are looking to take advantage of a growing trend of customers who would rather rent than own a vehicle. Ride-sharing, digital aggregators and car subscriptions are providing car rental businesses with alternative revenue streams. Ride-sharing, where car owners rent out their own vehicles, gained popularity in recent years, but was slowed by the pandemic. Digital aggregators account for a large share of bookings. Subscriptions, where vehicles are hired out on short-term leases, usually on a month-to-month, allow vehicle users to change from one car to another from one month to the next.

Report Coverage

This report focuses on the South African car rental industry, with comprehensive information on the state of the industry, effects of the pandemic and the decline in tourism and travel, trends, corporate actions and developments. There are profiles of 14 companies including the major players such as Barloworld (Avis and Budget), Motus (Tempest) and CFAO Motors (Hertz), other established companies in the sector such as Woodford Group and Pace Car Rental, and players in the ride-sharing, digital aggregation and car subscription space such as Inclusion South Africa (Planet24), Flexclub and RentMyRide.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 3
2.2. Geographic Position 4
3. SIZE OF THE INDUSTRY 4
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Corporate Actions 12
4.1.2. Regulations 13
4.1.3. Enterprise Development and Socio-Economic Development 14
4.2. Continental 15
4.3. International 17
5. INFLUENCING FACTORS 20
5.1. Economic Environment 20
5.2. Coronavirus 21
5.3. Crime and Road Safety 22
5.4. Input Costs 23
5.5. Technology, Research and Development (R&D) and Innovation 23
5.6. Labour 24
5.7. Cyclicality 25
5.8. Environmental Concerns 25
6. COMPETITION 26
6.1. Barriers to Entry 27
7. SWOT ANALYSIS 27
8. OUTLOOK 28
9. INDUSTRY ASSOCIATIONS 29
10. REFERENCES 29
10.1. Publications 29
10.2. Websites 30
APPENDIX 1 31
Summary Of Notable Players 31
COMPANY PROFILES 33
BARLOWORLD SOUTH AFRICA (PTY) LTD 33
BIDVEST CAR RENTAL (PTY) LTD 40
C M H CAR HIRE (PTY) LTD 42
CAR HIRE BROKERS (PTY) LTD 46
CFAO MOTORS (PTY) LTD 48
FLEXCLUB ZA TECHNOLOGIES (PTY) LTD 54
GAGE CAR RENTAL (PTY) LTD 56
GENISSIS 1 CASH CAR RENTAL CC 58
INCLUSION SOUTH AFRICA (PTY) LTD 60
MOTUS HOLDINGS LTD 61
PACE CAR RENTAL (PTY) LTD 66
RENTMYRIDE (PTY) LTD 68
SPRINGS CAR WHOLESALERS (PTY) LTD 69
WOODFORD GROUP (PTY) LTD (THE) 72