Ucar and the “Airbnb” Age for Renting a Car
FACTS
- The French car rental company Ucar unveils a new offer called Ucar2Share enabling customers finance a new car if they agree to rent it 7 days a month, after their previous car has been traded-in.
- Ucar commits to providing them with a new, same category vehicle, for a similar budget, based on a 36 months lease-purchase option. Santander acts as their financial partner for this offer.
- This service should officially see the day in March 2019. It is especially meant for car owners with old vehicles (diesel car registered before 2000, and petrol-fuelled vehicles older than 1996) which would no longer be authorised to ride in The Métropole du Grand Paris. This could apply to nearly 800,000 owners of old cars.
- The car driver agrees to make his car available from the Ucar2Share platform. Ucar is in charge of cleaning and insuring the vehicle, as well as of assistance services and rehabilitating it.
CHALLENGES
- As of July the 1st 2019, Crit’Air 5 labelled vehicles could no longer be authorised in the same area. This considered, Ucar tries to anticipate and meet car drivers’ needs, i.e.: changing car even if they may not be able to afford it.
- Securing car rentals and improving customer loyalty. To achieve this, Ucar is ready to bear the cost of the 7-day car share by way of decreasing the amount of the monthly instalment. This might contribute to attracting car drivers while helping them avoid cash management issues when implementing the service.
- Ucar also handles the underlying logistics for renting the vehicle –a process which may prove a complicated and stressful task– by way of reassuring their users. Ucar then highlights an assistance-oriented approach to assisting their customers.
Simulation
According to the Ademe’s assessment, a 15-year-old Renault Clio car costs roughly €279/month to their owner (fuel, purchasing cost, maintenance, etc.).
A new version of this car costs €393/month.
=> A €114 gap each month, which Ucar commits to finance in exchange for sharing the new vehicle (€16€/day).
MARKET PERSPECTIVE
- Following a test phase with a dozen of Ucar agencies, this concept will be expanded to their 150 franchised locations and, later on, in dealerships as a white label service. Car drivers may then manage their car sharing days from a dedicated mobile app.
- Other industry players are entering the market for P2P car sharing: Drivy recently started aiming for the Spanish car sharing market, and ride-sharing companies see these options as means to diversify their range of offers.
- Ucar bets on the sharing economy and makes further progress on niche markets. In October, they also partnered with Yamaha Motor France on launching rental options for motorbikes and motor scooters later this year.