In short-term sharing, automation is a must. The business model inherently relies on technology: vehicles are equipped with IoT modules, all devices are interconnected in the cloud, and users access them through a mobile app. But when it comes to long-term rentals, many services still rely on basic GPS tracking systems, simple one-page websites, and Excel spreadsheets to manage operations.
That’s a missed opportunity. Today, automation is a key trend in the industry.
Let’s take car rentals as an example: analysts predict that by 2027, the majority of their revenue worldwide will be generated through online sales – 56% in Africa, 68% in Asia, 72% in Europe, and 77% in the U.S. And this trend applies to other types of transport, too – whether it’s bicycles, scooters, or even RVs.
Gone are the days of paper contracts or calls to a support center. To retain existing customers and expand your base, offering the ability to manage bookings online is critical.
In this article, we explain how automation can increase not only your customer base and fleet utilization but also the overall profitability of your long-term rental service.
Automation vs. Manual Management in the Rental Business
How does a traditional rental service typically operate?
Employees process incoming requests manually – in a physical office, through a call center, or via the website. Administrators track clients, at best, using a CRM system, but more often than not, with Excel or Google Sheets. A separate third-party service is used for signing e-contracts. To monitor vehicles on the map, they open another GPS tracking app. And we haven’t even touched on fleet maintenance or financial management yet.
Automation brings all these processes together onto a single platform.
But it doesn’t stop there: it also opens up new features that wouldn’t be feasible without software, such as booking confirmations 24/7 or automatic payments.
Which Processes Can Be Automated in Rentals?
- Booking and Payment: A mobile app allows users to rent vehicles and pay for them online. They can find the nearest office on a map, view available units, book one, and link a payment card. Also, they can sign an electronic rental agreement directly in the app, which is particularly useful for delivery services. All data is automatically uploaded to the admin panel, saving staff from manual record-keeping.
- User Data Management: Automated systems can not only collect user information but also analyze their behavior, such as predicting peak demand days. Furthermore, you can leave comments and notes in the admin panel, keeping a single record of customer interactions for the entire team. Another feature is user notifications, ranging from reminders about an expiring rental to personalized promo codes.
- Fleet Management: All information about users, vehicle locations, and the condition of each unit is available on a single dashboard. The software allows you to track the fleet in real-time and receive alerts when something goes wrong – like a bike leaving a designated area. Vehicles that require maintenance or repair can be flagged with a special status in just a few clicks, making oversight much more transparent.
And there’s more.
Automation doesn’t just simplify processes – it boosts profitability. Quick data access and powerful analytics help you better understand customer needs, respond swiftly to changes in demand, and ultimately increase rental revenue.
5 Reasons to Automate Your Rental Service
Reason #1. Reduce Team Workload and Costs
Manual rental management is time-consuming. This is not an abstract concept but rather specific (and well-paid) working hours for your staff. By enabling customers to book vehicles online, you can minimize the number of phone calls, which means you don’t need to hire more employees to handle the demand. Additionally, automation helps reduce fleet-related expenses. By keeping track of vehicles and their condition, issues can be detected early, lowering maintenance costs.
Reason #2. Enhance Control and Process Transparency
With software, you can monitor vehicle locations, their condition, and who is using them. The platform also displays employee actions, like when they take bikes for maintenance or repair. This ensures all operational processes are visible, allowing you to reconstruct the sequence of events in case of any disputes.
Reason #3. Retain Customers and Grow Your Base
Automation benefits not just you but also your customers. For users, it is convenient to manage rentals from a single mobile app, where they can find the nearest office, book available units, sign agreements, pay, and renew the rental period if needed. A satisfied customer is more likely to choose your service again, which positively impacts fleet utilization and overall revenue.
Reason #4. Scale Your Business Without Extra Costs
When you decide to purchase more bikes or open new rental locations, you won’t need to significantly expand your team or increase administrative expenses. Automation minimizes the workload on staff, allowing you to quickly scale operational processes.
Reason #5. Outperform Competitors and Attract Investors
Rentals that use automated management systems always stay ahead of those still relying on outdated methods. A fast and smooth service makes the difference. Moreover, digitalization is a major selling point for potential partners and investors, making it easier to secure funding and accelerate business growth.
Considering whether automation is worth the investment and how fast it will pay off? Want to dive deeper into the features mentioned here? Or perhaps you have specific needs that new software could address?
Our managers are ready to discuss and answer any questions you may have. The ScootAPI team has been developing rental software for over 5 years, launching more than 15 services in 9 countries. Submit a request for a free consultation, and we’ll get in touch within one business day.
