Easycar Study

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GROWTH easyCar's

EasyCar opened its first office in London, 20 April 2000, called EasyRentacar. In the same week, easyCar has opened offices in Glasgow and Barcelona. All three cities are popular destinations easyJet. Initially, vehicles were able to rent a very cheap for example for € 15 per day plus a one-time charge of preparing the vehicle of 8 €. Each of these locations has had its fleet consisted exclusively of Mercedes A-Class. It was the only vehicle that could be rented at the time of easyCar-in.

EasyCar has signed a contract with Mercedes, amidst the great events at the Geneva Motor Show at the beginning of the year to purchase a total of 5000 vehicles A-Class. Vehicles that came with a guarantee conditions are easyCar cost slightly more than 6 million pounds. Many in the car rental industry were surprised by their choice, expecting to be more favorable to easyCar oslaniti vehicles. Elucidating purchase of 5000 Mercedes cars, Stelios said:

"The choice to purchase Mercedes reflects the brand's easyGroup. EasyRentacar will use a brand new Mercedes cars in the same way as easyJet uses brand new Boeing planes. We do not compromise on the hardware, we use innovation to significantly reduce costs. Car rental industry is been in a position where the airline industry was five years ago, a cartel that feeds the corporate client. EasyRentacar offer a choice for consumers who pay from their own pockets, and that will not be damaged in the midst of the week for the trip. "

EasyCar quickly spread to other places, focusing first on those areas that have been popular for easyJat customers, including Amsterdam, Geneva, Nice and Malaga. By July 2001, more than a year after its launch, easyCar had a fleet of Mercedes A-Class at 14 locations in the UK, Spain, France and the Netherlands. At that point, easyCar has provided 27 million pounds from a consortium of Bank of Scotland Corporate Banking and NBGI private capital for further expansion of its business. The package consists of a combination of equity and loans.

While easyCar opened several branches in the second half of 2001 and early 2002 reduction in demand after the terrorist attacks of 11 September forced the easyCar that hiring new sites going a little slower than it was planned. However, rapid growth has already started in the spring of 2002. From May 2002 until January 2003, easyCar has opened 30 new branches, going from a figure of 18 to a total of 48 branches. This acceleration of growth also coincided with a change in policy easyCar's about the diversity of their fleet. By May 2002 easyCar's fleet consisted of 6000 Mercedes A-Class to over 18 pages. But in May, easyCar beginning to its full fleet and other types of vehicles. Nevertheless they are still retained its policy to offer only one type of vehicle to single location, but is now a vehicle that the customer will get depend on the location where the rent car. First new car was a Vauxhall Corsa. In the words of Stelios, the

"The Opel Corsa is easyCar cost 2 pounds less per day than the Mercedes A-Class, so that we could move this saving on to our customers. Customers will alone decide, whether they want to pay more for a Mercedes. EasyGroup companies benefit from economies of scale where relevant, but we also want to create competition among our suppliers in the market so that we can better retain the low price for our customers. "

In January 2003, easyCar has also acquired a Ford Focus (at four locations), Renault Clio (three locations), Toyota Yaris (at three locations), and Mercedes Smart (at two sites), the Opel Corsa (at seven sites) and Mercedes A-Class (at 28 locations). Plans are demanded further expansion of the fleet, of which 7000 vehicles easyCar had in January to 24,000 cars in over 180 branches by end of 2004. Except as easyCar expands operations in multiple locations, it's also changed its policy for 2003 in order to facilitate renting for only one hour, even with only an hour...
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