Surging tourist arrivals to drive South Africa car rental and leasing market, Ken Research
08-02-2019 06:59:00 | by: Bob Koigi | hits: 1039 | Tags:

Utilization of rental and leased vehicles for executing jobs in app based taxi market, increase in tourism in the country due to the roll-out programme for eVisas in South Africa and the low valuation of Rand, rising number of middle income families and the improving economic scenario are some key factors that are expected to drive South Africa car rental and leasing market.

The percentage share of offline bookings in the car rental and leasing market will constantly decline and by 2023, online bookings are expected to have the major share in the market. In the long run, logistics and courier companies are expected to continue to be the major end user, followed by the mining company executives.

A huge drop in the growth rate is expected as even though the online cabs have been expanding at a tremendous rate till now, they are expected to reach a saturation point in the near future. Their growth will also be restricted by the low paying capacity of most of the people in the country.

The number of rides is expected to register constant growth as companies expand their presence to more cities. The online cab aggregator companies may also introduce the concept of share rides in the country, which is already functional in more developed markets around the globe.

Analysts at Ken Research in their latest publication "South Africa Car Rental and Leasing Market Projections to 2023 - By Business Model (Self Drive, Cab Aggregator, Car Leasing, Minibus Taxi, Metered Taxi and Airport Transfers) and By End User (Mining, Logistic & Courier and Others)" believe that greater flexibility in car hiring system by corporate booking and long term leasing services companies, strict implementation of rules for governing taxi market, better access to internet services at reasonable rate, promotion of ride sharing, provision of more value added services, improvement in driver and rider safety and tie- ups and collaborations between different companies will aid the car rental and leasing companies and cab aggregators to grow and achieve higher profits.