Europcar Group: Company Strategy & Performance Analysis
Europcar Group (Europcar), along with its subsidiaries, provides car rental services for business and leisure customers worldwide. The company mainly operates its business through its Europcar, InterRent, and Ubeeqo brands. It offers vehicles for both short and medium-term business and leisure rentals. Some of the major service offerings of the company include Car Rental Services, Chauffeur Services, Franchise Services and Mobility Solutions. The company also offers truck rental services and is involved in franchise operations. Europcar’s fleet size increased at 4.1%, from 205,400 in 2015 to 213,800 in 2016. The company’s initiatives, such as central coordination and local initiatives to build strong, longstanding partnerships with vehicle manufacturers, helps the company to maintain efficient fleet management and support growth.
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 and rental offices.
Europcar maintains its average fleet size to provide a good service to its customers
Europcar’s fleet size increased at 4.1%, from 205,400 in 2015 to 213,800 in 2016. The company’s initiatives, such as central coordination and local initiatives to build strong, longstanding partnerships with vehicle manufacturers, help it to maintain efficient fleet management and support growth. The company’s fleet composition consists mainly of Volkswagen cars, which were 30% of its fleet composition in 2016. The company currently uses 42 different models of cars provided by 21 manufacturers. This diversity allows it to meet the rental demands of a broad range of customers.
Strategic acquisitions made by the company help to strengthen its market position
The company has undertaken a variety of strategic acquisitions to improve its market share. These acquisitions help the company to strengthen its leadership position in its core business and to develop its position in new markets. For instance, in May 2016, Europcar France acquired Locaroise, its third-largest French franchisee in terms of revenue. Locaroise has a long established commercial presence in the Northern region of France, so this acquisition helped Europcar to further strengthen its market position. In May 2017, the company acquired Buchbinder, the largest car rental company in Germany. Buchbinder is also a market leader in Austria and is present in Hungary and Slovakia. This acquisition will help the company to become the number one player in both Germany and Austria. It will also help the company to significantly boost its low cost and van and truck businesses in these countries.
The company’s unique services and new initiatives enhance its number of rental days
Europcar’s unique service offerings, coupled with several of its strategic initiatives, help it to enhance its market position. The company reported an increase in number of rental days, which increased from 57.1 million in 2015 to 59.9 million in 2016. The company also made investments in its digital platform to improve the retention rate of its business customers and increase the ‘direct to brand’ portion of its leisure segment.