Disruption and Niche Offerings in a Crowded Car Rental Marketplace?

Picture credit: Michael Marais on Unsplash

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The car rental market is reportedly a highly competitive landscape. It’s why you have to be somewhat disruptive to even try to get a toehold in it.

Car sharing startups like Turo are increasingly challenging the status quo and the market share of big national players like privately held Enterprise Holdings and Avis Budget Group Inc. CAR, not to mention smaller, independent regional players that make up a significant portion of the national vehicle rental market.

With Turo, and other similar business models such as Getaround, car owners are able to rent out their vehicles to visitors who can either pick up a car at their host’s location or get the vehicle delivered to them. An Airbnb Inc. ABNB-type model for cars, if you like.

New York City-based Joulez is doing things a little different in its attempt to get some of that highly valued car rental market share. The company is focusing on electric vehicles (EVs), and it provides its own fleet in doing so, delivering a car to customers and guiding them through the process from delivery to return.

In September, Joulez took delivery of its first Tesla Inc. TSLA vehicle and has since added more to its growing fleet. With EVs only accounting for about 2% of the current car rental market, the company thinks it has a niche that will increasingly appeal to younger demographics who want cleaner vehicles.

Customer Service Vital in EV Market?

But such niche value of EVs alone will not be sufficient, Joulez believes. Because many potential customers may be unfamiliar with how to operate such a vehicle, it is also vital to offer seamless customer service to guide such customers through the process and ensure they have a successful rental experience.

Joulez says it’s why it delivers the car to you — avoiding any unnecessary waiting in line — and stays with you through the experience if necessary, connecting on Zoom Video Communications Inc.’s ZM meeting platform if problems should arise.

The big national players like Avis are increasingly focusing on EVs as part of their rental fleet. In early November, the company’s stock soared when it said it would look more at the EV market.

So Joulez, for example, is not alone in offering EVs. But it is certainly niche in that EVs are the only vehicles it is offering.

And with specialized customer service in the mix and superior technology in the mix, it may have a business model that could be attractive to bigger players.

The startup, whose management team grew from Bytemark, a mass transit payment solutions company, is also offering to rent out EVs owned by 3rd parties, increasing its scope and name recognition.

With the potentially lucrative resale of EVs to add to the mix, such additional operations like the management of 3rd-party vehicles might aid Joulez’s expansion and potentially help it make inroads into what is a very crowded marketplace.

Learn more about the current raise for Joulez via its StartEngine campaign here. 

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.