Uncertainty driving growth in b2b rental, says FleetEurope
FleetEurope is claiming record growth for its corporate rental products during the first half of 2018, attributing it to economic uncertainty driving businesses to seek alternatives to longer-term leasing.
The company said its MonthPlus and SelectPlus products, launched last year and offering periods of of 28 or more, and 90 or more, days respectively, had both played a significant role in its 39% year-on-year increase in rental days during the first half of 2018. Collectively, these now account for 78% of the total days booked.
It is now forecasting 28% year-on-year increase in revenue during Q4 2018, and an additional 20% is projected in 2019, with chief operating officer, Joe Howick, adding that there is potential to make strategic acquisitions on top of the company’s planned organic growth.
Howick said: “The UK is in a period of economic uncertainty and understandably businesses are looking to reduce the risk of making long-term financial commitments when it comes to the mobility of their employees. Rental market pricing has now reached a level that allows businesses to make a cost neutral switch from a three-year vehicle lease to a flexible mini lease, depending on the type of vehicle they require.”