Business

Ride-hailing apps breath new life into car rental sector

Initially seen by car rental companies as a threat, ride-hailing apps now represent their best opportunity for growth.

Brazil’s latest unemployment figures are quite disappointing, as one-quarter of the workforce is either unemployed or underemployed. Only one sector actually managed to create jobs: transportation, thanks to ride-hailing apps such as Uber and 99. When these apps started to become popular, back in 2014, they were seen by car rental companies as a threat to their business model. Executives feared that people would no longer rent vehicles if they could call one on their phones.

However, ride-hailing apps now represent a major opportunity for growth in the rental sector—with Brazil’s biggest players dedicating specific areas...

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