Enterprise Holdings, Inc: Company Strategy & Performance Analysis
Enterprise Holdings is one of the largest car rental companies in the US. It offers a wide range of services to its consumers, including neighbourhood and airport car rental, car sharing, ride-matching, vanpooling services, car sales, exotic car rental, motorcycle rental and commercial truck rental. The company serves both commercial enterprises and individual customers. It operates international brands with more than 5,800 neighbourhood and airport locations throughout North America and Europe.
MarketLine Premium’s company strategy reports provide in-depth coverage of the performance and strategies of the world’s leading car rental companies. The reports detail company operations in key geographies as well as comprehensive analysis of each company’s growth strategy and financial performance. Furthermore, the reports allow benchmarking company performance through the provision of key performance indicators including fleet size.
Leading market presence in the US
Enterprise is one of the largest private companies in the US. The company has a strong market presence in the car rental and travel industry. It operates with a large fleet size of more than 1.9 million cars and trucks in 2016 as compared to 1.7 million in 2015. Enterprise operates across 9,600 fully staffed neighborhood and airport locations worldwide. Moreover, the US accounts for 72.5% of the total revenue for the company. Also, Enterprise accounts for 48.1% of the total US car rental market in terms of revenues. Furthermore, the company’s neighborhood and airport branch offices are located within 15 miles of 90% of the US population, which provides Enterprise with a competitive edge over its peers.
Strategic acquisitions to support business growth
Enterprise focuses on growth through strategic business acquisitions. In April 2017, Enterprise Rent-A-Car Ireland acquired Dooley Car Rentals, one of the leading car rental companies in Ireland - from Dan Dooley Group. This acquisition has enhanced Enterprise’s fleet size by more than 1,400 vehicles and also added Dooley Car Rentals international customers and contracts. During the same period, Enterprise Rent-A-Car Germany has signed an agreement to acquire CARO Autovermietung GmbH. This acquisition will create one of the largest car rental businesses in Germany. Also, In June 2016, Enterprise acquired vRide, a vanpooling US company, from TPG Growth. This provides Enterprise with an opportunity to develop and expand vanpooling and ride-sharing services to its consumers.
Robust outlook for the global car rental industry will drive revenues
Global car rental services industry is expected to grow over the 2017-21 period. According to market estimates, the global car rental services industry is expected to grow at CAGR of 3.6% over 2017-21 to reach approximately US$80.8 billion by 2021. Enterprise and its affiliate Enterprise Fleet Management offers comprehensive transportation solutions and is one of the largest car rental service providers in the world. Enterprise operates its business across the US, Canada, Mexico, the Caribbean, Latin America, the UK, Ireland, Germany, France, Spain, Brazil, and China. Therefore, the robust outlook of global car rental industry will drive company's revenues.