14 ms·
>If they sold a car, they get profit immediately. If they kept the car for their own fleet, it would take longer to earn the same profit and then add additional
by rhino369 10y ago
>If they sold a car, they get profit immediately. If they kept the car for their own fleet, it would take longer to earn the same profit and then add additional overhead of maintaining the fleet, the reservation system, refunds, additional litigation, etc.
A car company can raise capital and manage fleets much better than individuals can.
- Clubber 10y agoA car rental company could do that even better than a car manufacturer.
- rhino369 10y agoI imagine if a car company really did invent an autonomous car that works almost 100% of the time, they'd do a joint venture with a car rental place. But the car company has a competitive advantage in that it could choose not to sell to anyone while they build out a fleet maintenance operation. But if multiple companies solve the problem at the same time, maybe Hertz has the advantage.
- paulddraper 10y agoSo car rental places would buy up the supply (and charge less in fares) until the prices work themselves out.