The car rental service has become an important part of the travel and tourism industry. It has become the choice of the elite, be it within the city or across the country. The youth of today have witnessed a sharp increase in their income which has finally paved the way for a luxurious and comfortable life. Whether it’s going on vacation, a one-day picnic, or a business meeting, people now prefer to rent cars instead of driving long hours and getting tired.
With so much growth in car rental services, it’s safe to wonder how and when this service started. There are many beliefs and considerations regarding the history of car rental, but the fact is that it is somehow closely related to the growth of the automotive industry.
The first car rental service is believed to have been offered by a Nebraskan named Joe Saunders. In 1916, Joe Saunders lent his Model T Ford for the first time to a traveling salesman who wanted to impress his girlfriend on his date. The well-known businessman Joe Saunders was not even aware that this loan would eventually turn into a successful business. Gradually, his business began to grow to new heights and then he began charging 10 cents for every mile driven.
The first car rental company started by Saunders experienced exponential growth, after which many other businessmen started their car rental companies in America. Although Saunders experienced bankruptcy during America’s post-Great Depression economic collapse, others who followed him continued to outlive their business opportunity. Walter Jacobs and John Hertz were the ones who successfully continued its operation. When growth levels began to reach extreme heights, John Hertz was unable to sustain a venture with the auto giant, General Mills. Following this, the United States witnessed the rise of Warren Avis car rental and the National American Rental Car System.
Many other companies gradually began to enter the business with high expectations of profitable returns. Also, as air traffic began to increase, the demand for rental cars increased subsequently. This is mainly because most business partners travel via airlines and then use taxis to travel within the city from the airport to the destination and vice versa.
All this gave a huge boost to the growing capabilities of car rental services around the world. Even the scenario in India seems to be very promising and progressive. Nowadays many global companies are dabbling with Indian brands to provide car rental services in the country. Many companies offer dedicated service at the airport and others offer services throughout the city.
For more information, see Car rental.