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Realities and prospects of car rental in Ukraine

Among local companies, Sixt is the leader. However, at the local level, among the distributors it is worth noting the leadership of BLS. The combined rating of companies in the car rental market, taking into account the number of locations in Ukraine, is as follows:

  • 1. Sixt;
  • 2. Avis;
  • 3. Budget;
  • 4. BLS;
  • 5. Race;
  • 6. Europcar;
  • 7. Hertz;
  • 8. Aro Cars;
  • 9. Megarent;
  • 10. Andi.

Ukrainian companies are faced with an absolute lack of legislative framework. In Europe, there are no problems with non-payment of claims by insurance companies or law enforcement assistance in the event of fraud by customers. Unlike European, Ukrainian companies solve all problems on their own. Often it is necessary to allocate additional funds to compensate for the consequences of insured events, and not to invest in development. In addition, the cost of car rental in Europe and Ukraine is the same, but the cost of cars, loans and insurance in Ukraine is higher.

Despite the negative factors, the car rental business in Ukraine, originating in 1997, still received a new round of popularity after 10 years. In 2007, international network brands appeared on the Ukrainian market, national operators began to actively develop. Interest in car rental service is growing every year. This is due to the need to rent a car for recreation and celebrations. In addition, a rented car is useful if a personal vehicle is under repair. Moreover, more than 70% of customers are men.

According to the rating created by the Association “UkrAvtoprom”, the most popular car brands among Ukrainians following the results of sales for 2013 were Hyundai, ZAZ, Geely. At the same time, while the positions of the first two remained in the rating, despite the negative dynamics, Geely made an impressive increase of 35.8 percent, which is due primarily to the fact that it managed to fill almost all price niches. The once popular brands Volkswagen, Kia, Nissan and even Skoda received negative indicators of sales dynamics. Analysis of the popularity of car makes it possible to predict the preferences of Ukrainians in choosing cars for rent.

The lack of a legislative framework forces companies to unite. A striking example of cooperation is the International Association of Car Rental Companies (ICRA), which covered 35 companies in 2013, which exceeds half of all those represented in Ukraine. Consolidation of companies allows increasing the popularity of car rental services in Ukraine. Combining efforts in the fight against car scammers, car thieves and unscrupulous tenants, improves the quality of the service as a whole, protects the consumer from unscrupulous companies.

Recent events in Ukraine related to mass protests throughout Ukraine, the so-called EuroMaidan, have had a negative impact not only on the growth of the car rental market, but also on maintaining the annual level. Arson, vandalism compel company owners to restrict the movement of customers in "hot spots" - the center of the capital, the eastern region, Crimea.

The functioning of the market is affected by rising fuel prices. The number of car fraudsters who do not return rented cars has also increased. Forecasts by market experts regarding the near future car rental in Ukraine are not optimistic.

However, the joint project of the BLS company and the Ukrainian railway high-speed company - Intercity Auto, which can give a new breath to the Ukrainian car rental, has a prospect. The service attracts the attention of passengers, allowing you to fully control the route of their movement. You can rent a car by informing the train conductor, and the vehicle will be served directly to the arriving train.