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In recent years, the demand for electric vehicle (EV) rentals has witnessed a remarkable surge, reflecting the growing global interest in sustainable transportation. In fact, over the next year the EV rental market is expected to grow by $2 billion with a growth rate of nearly 16%. And, car rental companies are getting in on the action with rental companies like Hertz announcing they’re adding over 150,000 EVs to their rental fleet.
This growing demand for EV rentals is driven by a combination of factors including:
Essentially, EV rentals provide a convenient and eco-conscious alternative to traditional car rentals. On top of that, they also offer considerable benefits for both car rental companies and drivers alike.
When it comes to growth like we’re seeing–in not just the electric vehicle market but in rental fleet electrification as well–we have to understand that this kind of growth really only comes when there are benefits for all stakeholders. And, in this case, the benefits are significant.
Among the first benefits for drivers is the ability to test drive. As EVs become more widespread, many curious drivers are willing to rent an EV to see how it drives and performs prior to making a purchase. Additionally, for individuals who worry, with fewer moving parts, EVs tend to have fewer mechanical issues which may provide peace of mind, especially in the rental process.
Similarly, in urban or congested areas, where traffic is often stop and go, EVs can be a big money saver. It’s no secret that traffic and traffic jams can put a serious damper on fuel efficiency, but that same issue contributes significantly to carbon emissions and decreased air quality, especially in cities. In fact, recent research credits EVs with improved air quality and, in turn, public health.
Of course, for drivers concerned about their carbon footprint and environmental impact, rental EVs are an obvious choice as well.
And, finally, for many drivers, the relatively quiet and often smooth performance of electric vehicles can make the driving experience more enjoyable. Picturesque or scenic drives, with the windows down, in an EV may just be more enjoyable for drivers (while also saving them from gas guzzling guilt).
While happy drivers are a boon to car rental companies, they’ve got their own benefits too.
For car rental companies, the benefits, in large part, tie back to some of the same reasons we’re seeing demand increases. Not only do they make EV drivers, and drivers who are interested in EVs, happy about rental options, but they can also create reputation boosts as consumers see these companies as participating in increasingly valuable ESG efforts.
Further, EV rental companies reap the reward of ROI. More specifically, decreased costs on everything from oil changes, wear and tear maintenance, and refueling translates to bigger profits and greater returns on vehicle investments. Similarly, rental companies may be eligible for tax incentives and rebates for initial purchases of electric vehicles and EV infrastructure to support fleet electrification.
And, tangentially related, are the cost savings associated with meeting regulatory requirements. For car rental agencies that operate in different states across the country, ensuring rental vehicles meet car emissions regulations can be time and resource consuming. Electric vehicles, on the other hand, save that headache and can help build a future-proof business solution.
Even with the benefits, rental EV fleets present unique challenges for both rental companies and users.
For both parties, EV charging infrastructure can be a challenge. To start, some regions, especially sub-urban and rural, are simply lacking the infrastructure. While efforts are being made to improve that situation, and the Bipartisan Infrastructure Bill has specifically allotted for rural EV charging infrastructure, there are still charging deserts.
Similarly, EV infrastructure has a reliability issue. Infrastructure issues, whether scarcity or reliability, can lead to range anxiety for renters.
Similarly, charging time can be an issue. For example, if drivers have trouble finding EV charging stations “in the wild,” rental companies will need to rely on depot charging. While fleet charging is just one aspect of fleet electrification, when it comes to quick turn over, rental companies will likely need to invest in expanding their charging infrastructure to ensure convenient access for users while public charging catches up to demand.
Another challenge associated with rental EVs is the potential for battery degradation. Rental cars typically experience higher usage and more frequent charging cycles than privately-owned vehicles. And, in the case of rapid turnover, rental companies may rely more heavily upon fast charging. This places increased stress on the battery and can lead to faster degradation, impacting the overall performance and EV range over time. Thankfully, EV batteries are among the EV technologies that are rapidly improving. Still, rental companies must carefully manage battery maintenance to ensure the longevity of their EV fleets.
For rental companies, the upfront cost of fleet electrification can seem daunting. Electric vehicle costs remain higher than traditional vehicles, so the initial investment can be significant. However, as we’ve discussed in previous blogs, fleet electrification is a process and so with proper planning this cost can be offset. Further, the operational cost of EVs is generally lower, improving ROI, and aforementioned financial incentives can support rental companies looking to transition to electric fleets.
And finally, for drivers who are unfamiliar with EVs, EV charging, and EV charging infrastructure, renting an electric vehicle may be off-putting. It’s hard enough for some of us to find the headlights and figure out climate control in some new vehicles, acclimating to EV charging and charging apps is a hurdle too high for some drivers.
Thankfully, these challenges are hurdles and not roadblocks. Increased adoption rates as well as advancements in EV charging, from infrastructure and cars to EV charging apps and more are making the transition for drivers, rental companies, and fleet owners even easier.
Not to seem philosophical, but Nelson Mandela once said we should base our decisions on our hopes rather than our fears and choosing an EVSE provider is that exact kind of decision. If you’re looking for solutions that not only support your immediate fleet electrification needs and short term goals but also support longer term goals, then you want vendors who’ve got the future in mind, vendors who are building based on where they hope, in this case, EV infrastructure and adoption will be in the future.
What does that mean? Let’s start with planning. When it comes to analyzing your site, an EVSE provider can look at your existing space and electric capacity and help you plan for current needs while being mindful of where you’ll be in the future. Being able to move fleet vehicles easily, providing access to EV charging stations in a way that doesn’t impede daily traffic is essential. Similarly, knowing how to architect the site to maximize charging opportunities is essential.
In order to assist with power load management, without making a significant investment in electrical infrastructure, the charging platform management system (CPMS) provided by your EVSE provider should help you effectively and efficiently manage power usage and distribution among charging stations.
Similarly, CPMS should also help you monitor charging stations for performance as well as helping you manage charging needs. More specifically, you’ll likely need to rotate vehicles and having assistance from your CPMS should be essential. That same CPMS can also be essential when it comes to helping renters find charging stations and get assistance as needed.
And, when it comes to the bigger picture, how is the EVSE provider you choose participating in helping to create the EV future that will expand EV infrastructure and encourage wider adoption? In what ways are they participating in not just building but also improving the EV experience to facilitate the growth of your EV business as well?
Choosing an EVSE provider is about more than choosing the team that will simply install your EV charging stations. A turnkey EV solution provider will work with you every step of the way, from site selection and installation to managing your stations through a CPMS, providing ongoing support for station owners and hosts as well as drivers.
And, finally, when it comes to overcoming these challenges, finding an EVSE provider with experience and expertise in solutions that fits your needs is essential. From fleet electrification to leveraging infrastructure to meet the charging needs of your fleet, the team at NovaCHARGE has the experience you need. If you’re ready to start looking at fleet electrification, let’s talk!