FleetEurope’s vehicle rental business experiences unprecedented growth in 2018FleetEurope
FleetEurope has announced record levels of growth within its corporate vehicle rental division during the first half of this year. The leading independent vehicle management solutions provider is forecast to achieve a 28 per cent year-on-year growth in revenue during Q4 2018, which is projected to increase by an additional 20 per cent in Q4 2019.
The total number of rental days transacted with its corporate customer base has also reached an all-time high with a 39 per cent year-on-year rise, in addition to a 68 per cent increase in rental days during Q2 2018, when compared with the same period in 2016.
FleetEurope’s chief operating officer Joe Howick attributes this recent success to an increased demand from customers looking for a more flexible alternative to their current long-term vehicle leasing arrangements.
Howick commented: “Our MonthPlus 28 day+ and SelectPlus 90 day+ rental services have proven to be extremely popular with customers since we launched them last year. Our daily rental volumes have surged to the point where 78 per cent of the rental days transacted are for periods of 28 days or longer.
“The UK is in a period of economic uncertainty and understandably businesses are looking to reduce the risk of making long-term financial commitments when it comes to the mobility of their employees. Rental market pricing has now reached a level that allows businesses to make a cost neutral switch from a 3-year vehicle lease to a flexible mini lease, depending on the type of vehicle they require.”
The successful expansion of FleetEurope’s rental division also stems from an ambitious growth strategy, introduced by Howick following his appointment in March 2016.
Howick added: “FleetEurope is on track to reach its target of more than doubling its annual revenue by 2020. Over the past two years we’ve achieved some key milestones, including over 250 new customer acquisitions, recruitment of key industry talent, system development, marketing initiatives, multiple award wins, strengthening supplier relationships and the development of our existing service offering to provide additional value to customers.
“Although FleetEurope’s business strategy will continue to focus on growing organically, we are not averse to the notion of utilising external private equity firms, which could include the opportunity of making strategic acquisitions.”