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Prospects for the development of the car rental and car sharing market

Experts say that the Russian car rental market has great potential, so it is not surprising that it has been actively developing recently. The owners of this business receive a fairly acceptable level of profit due to the successfully developed conjuncture in this branch of the economy.

We can conclude that the rental sector is a very promising direction, which we will discuss in detail in our article. In addition, we can cite the fact that entrepreneurs receive a good income, which easily recoups the costs of conducting such activities.

The history of rental in Russia

The origins should be sought in the Soviet era, when the head of the USSR, Khrushchev, decided to create a rolling economy throughout the country. At first, the rental fleet had a small number of cars, but despite this, the managers planned to expand the direction.
Therefore, already in 1962, the population of the country could rent cars in 40 cities of our country. But the development of this industry has slowed down due to the departure of Nikita Khrushchev from the post of head of the Soviet Union. And the new bosses of the CPSU have curtailed this activity.
And only at the end of the 20th century there was a "rediscovery" of the car rental market. Although it was affected by the crisis of 1998, the beginning was laid. Foreign companies, such as Hertz, came to the segment, and this had a positive impact on the development of the industry.

The current state of the market: development and figures

At the moment, business players are actively working in their own direction in Russia. According to the data of 2017, the market is growing by more than 20% per year. This is influenced by factors such as the spread of the service in the country, as well as an increase in users who want to rent a car.
If we talk about cities, then in addition to Moscow and St. Petersburg, we can mention Sochi, Kazan,Yekaterinburg and Kaliningrad, where there is also a rapid development of car rental. Crimea, in particular Simferopol and Sevastopol, is not far behind them. About 2 thousand cars are available to users across the country, and the volume of services is up to $ 4 million per month.

It is impossible not to say about the market participants, who are represented in the following forms:

* Rental points from car manufacturers;
* Rental from small companies, which includes no more than fifteen cars or does not have its own fleet at all;
* Companies that work in the field of rental for VIP clients;
* Large organizations that are also represented in other regions of Russia;
* Russian representative offices of foreign companies.
Categories of rental business
It should also be said that mostly individuals rent cars for a short time, while client companies prefer to rent for a longer period.
From the preferences, it can be noted that most often users drive economy and middle-class cars.

Prospects for further development

Experts say that in the future, in most cases, users will take a taxi and use car sharing. Also, let's not forget that the technology of unmanned transport is being actively developed now. The following are the main trends in the automotive sector, which affects the development of the car rental market:

* Previously popular car models are losing their importance among customers;
* The number of paid parking spaces will grow;
* The volume of sales of supported cars is increasing;
* Applications in the field of short-term rental are the fastest to solve the needs of machine users;
* Carsharing and taxis will have the largest share when using a car.

Speaking of the latest trend, let's find out when carsharing appeared, as it is increasingly entering our lives.

Carsharing: the emergence and prospects

Experts say that the prototype of the first car-sharing appeared in Switzerland, when in 1948 the Sefage cooperative decided to offer people a car for a short time. At the same time, the activity was more focused on the social sphere than for profit.
And only in the late 80s of the 20th century, carsharing became the type of short-term car rental that we now know. During this period, there were many companies offering such a service. In Russia, it appeared in the mid-noughties, but our citizens actively began to use it only recently. In general, the prospects for this type of rental are quite good in our country.

Trends in the development of car rental in different regions of the Russian Federation

First, we will analyze how the situation has developed in one of the capitals of Russia, St. Petersburg, and we must immediately say that the car rental market is well developed in the city, even if compared with the leading countries of the world, for example, the United States. In addition, together with Moscow, the segment's share is about 90% of the total volume of this industry.
Now let's turn to the Far East region and take the Kamchatka Territory as an example to understand what position our niche has in this area.
Experts from the Ministry of Tourism of the subject state that the rental market is actively developing and this is especially true in the period from June to October, when guests of Kamchatka use cars for different travel purposes, for example, for a sightseeing trip around the region.
Structure of car rental services
But in winter, the need for rental is reduced due to difficult weather conditions in the region and a small number of tourists who do not want to take cars for a trip.
In addition, the situation was affected by the coronavirus pandemic, so some distributors worked at a loss, which did not add confidence to market participants. And how do the companies of the resort areas of Russia, for example, Krasnodar, feel?
Let's highlight the fact that in this southern city, the situation at the box office has changed a lot than it was ten years ago. Now vacationers can take a car at a very reasonable price. The cost of renting an economy class car is a little more than 1000 rubles per day.
Approximately this price remains even in the most visited period of the city by tourists, which can not but please fans of trips in Krasnodar.
Users note the fact that now tourists can order a rental in Kuban using the pre-booking system, and this greatly simplifies the use of this service. In general, we can say that car rental is dynamically developing in Krasnodar, Sochi and other cities of the Krasnodar Territory. Crimea is not far behind this region, where, in addition to Sevastopol and Simferopol, rental points in Yalta, Alushta, Yevpatoria and other coastal cities are gradually developing.

Main conclusions

In Russia, the car rental market has become publicly available to the population only recently in relatively developed countries of Europe and the United States. Nevertheless, a wide range of services is offered for consumers, from car sharing to long-term car rental. Rental is actively developing in the country, although there was a pandemic year, which market participants experienced very difficult.
According to experts, customers will increasingly turn to such a service as car sharing, but perhaps interest in long-term rental will also remain. The trend towards the sharing economy will continue – more and more often consumers make a choice in favor of renting things than buying them, which means that the rental market will increase its potential.

Author: Andrey Sorokin, owner of Amigo car rental