Apps increase rental profit drivers in the bag

Seen as a threat to the advancement of transport by applications in Brazil opened a new thread to car rental agencies and helped fatten the balance of these companies, which have shown good performances still in the bag. The net profits of the Finds, the largest of the market, jumped 17 percent in 2018, to $659 million, reported the company, giving start to earnings season. In 2018, its shares advanced 35%. The roles of the pair and Moved 96% and 22% overvalued, respectively. As comparison, the Ibovespa index, which brings together the most actively traded stock, rose 15%. The hire companies will not divulge the participation of drivers for applications in its operations, but the Mapfre team Investments estimates that something close to 20% of the car rental segment is directed to that client. Tracking created last year, an exclusive service for drivers, the partners Finds Driver. It allows the value of the rental of the vehicle is deducted directly from the gains made with the races. "We studied a lot the way they think and we understand that we need to offer plans for every need," says Bruno Lasansky, Director of the Division of rental of finds. In Moved, the thread is in a digit of 7% revenue to 9%, according to Renato Franklin, Executive Vice President of the store. "The leasing sector as a whole has presented very solid foundations, and applications help. 20 people a day are entering a car and discovering the driver as rent, how much it costs, "he says. The store also offers special conditions for these professionals, such as hiring more high mileage, and has partnered with the Lady Driver, application to women. "Application drivers are a segment on which the rental started talking more recently, although they have already contributed to a relevant growth and there is great potential in this channel", says Bruna Pezzin, an analyst with XP. "Brazil is one of the main markets of Uber today, and not all of these drivers rent car yet." The American company, the main type applications, has about 3 million registered drivers in the world-more than 600,000 in Brazil, where it operates from 2014. Applications of drivers have gained momentum in the wake of the recession, which pushed professionals registered for the job. "When the Uber started taking body, it was thought that could be a risk for the stores, because people would no longer rent car to use the application," says Peter Bruno, an analyst at Santander. "After, it was realized that it would be the opposite: the company would bring opportunities, as motorists took." Seven months ago, Edvaldo das Neves, 55 years, rented a car from Moved to work via Uber. He is registered on the platform as a driver for a year and a half and did 4500 runs. "I've always worked in multinationals, at the Mall, but after 40 years you stay out of the profile. Have a good resume, but haven't been able to relocate, "he says. According to him, the daily car rental goes for R $50.00, and your goal is to earn with R $250.00 races per day. Companies seeking sustainable growth despite the gains brought by drivers, analysts point out that the rental car companies seek a sustainable growth in the segment. "Many drivers share the rent of the vehicle. The car runs and never stops. Companies rent, but are keeping an eye on the mileage limit. Often, offer to exchange the vehicle for the same price, "says Peter Bourroul, an analyst with Mapfre. The apps brought a parallel demand. "People have traded the car for app in day to day, but when they have to make a larger displacement, rent a vehicle," says Paulo Miguel Junior, President of the National Council of Abla (Association of car rentals). He claims that the sector was resilient to the crisis, in part because companies in other areas needed to cut costs and outsourced fleets-another segment in which the stores have grown. Going to scale, consolidation of the competition-the Locamerica bought United in facing 2018 and took over the brand-and rental prices falling also help explain the momentum in the sector. "Rent a car is, in nominal terms, 15% cheaper than 10 years ago. The only way for the service to be profitable is gaining scale ", says the Director of rent of vehicles from United, Carlos Sarquis. The good performance of the video stores generates effect also in the automakers, who have seen direct sales go up, although the squeeze margins. In January 2018, direct sales accounted for 27% of the light car plates issued, according to the Fenabrave (representative of distributors of vehicles). In December, it was 37%. "The idle capacity of automakers is still high. See, in the long term, the possibility to continue working next to them, "says Franklin, Moved. The Abla wait one more good year in 2019, mainly if the reheating of the economy is confirmed, "because the industry is still small," says Miguel Jr. In 2017, the Association's latest data, the stores met 709,000 cars. "The apps are a way of capital growth, but all segments have the potential to turn around the economy," says Pezzin, XP. Brazilian startup invoice 30 million in 2018 offering drivers A rentals of new companies betting on location of vehicles is the PPCar, which emerged as an alternative for people who want to become drivers, but who do not have a car available. The startup, which has reached 1500 signatures, grossed $30 million in 2018 R. For 2019, is forecast to end the year with more than R $116.8 million. Until 2023, the expectation is to move R $730.6 million. According to the Portuguese Alexandre Ribeiro, CEO and founder of PPCar, one of the main advantages offered to drivers is the signature model with weekly payment which helps cash flow of professionals. "As the application payment is made on a weekly basis, we decided to offer this convenience to drivers, therefore, facilitated the process of lease for them", says Ribeiro. The PPCar has prices from R $459.00 (depending on the type of subscription chosen), with mileage up to 1,167 kilometers weekly, and additional kilometer value of R $0.36. The price charged in the event of an accident is R $500.00. Currently, the PPCar is present in the cities of Caxias do Sul (RS), Curitiba (PR), Campinas (SP), Belo Horizonte (MG), Brasília (DF), São Paulo (SP), Santos (SP), Rio de Janeiro (RJ), Porto Alegre (RS) and Salvador (BA). Abroad, have expanded operations to Lisbon (Portugal) and Mexico City (Mexico). The company intends to expand your international presence, opening operations also in Argentina, Chile, Ecuador, Panama, Peru and Dominican Republic.