The History of Enterprise Rent-A-Car
ENTERPRISE BUILDS ON PEOPLE
When most people think of car rentals firms, the names of Hertz and Avis usually comes to mind. But in the last few years, Enterprise Rent-A-Car has overtaken both these industry giants and today it stands as both the largest and the most profitable business in the car rental industry. In 2001,for instance the firm had sales in excess of $6.3 bn and employed over 50,000 people.
Jack Taylor started Enterprise in St Louis in 1957.Taylor had a unique strategy in mind for Enterprise and that strategy had a key role in the initial success of the firm. Most car rental firms like Avis base most of their locations in or near airports ,train stations and other transportation hubs.These firms see their customers as business travelers and people who fly for a vacation and then need transportation at the end of thgeir flight. Enterprise went after a different customer base. It sought to rent cars to individuals whose own cars are being repaired or who are taking a driving vacation.
The firm got its start by working with insurance companies. A standard feature in many automobile insurance policies is the provision of a rental car when one’s personal car has been in an accident or has been stolen.Firms like Hertz and Avis charge a relatively high daily rates because their customers need the convenience of being ear the airport or have their expenses paid by their employers. These rates are higher than insurance companies are willing to pay, so customers who use these firms end up paying part of the rental bills themselves. In addition their locations are also often inconvenient for people seeking a replacement car when theirs is in the shop. Enterprise located their stors in downtown and suburban areas where local residents actually live. The firm also provides local pick up and delivery service in most areas.It also negotiates exclusive contract arrangements with local insurance agents. T hey get the agents referral business while
When most people think of car rentals firms, the names of Hertz and Avis usually comes to mind. But in the last few years, Enterprise Rent-A-Car has overtaken both these industry giants and today it stands as both the largest and the most profitable business in the car rental industry. In 2001,for instance the firm had sales in excess of $6.3 bn and employed over 50,000 people.
Jack Taylor started Enterprise in St Louis in 1957.Taylor had a unique strategy in mind for Enterprise and that strategy had a key role in the initial success of the firm. Most car rental firms like Avis base most of their locations in or near airports ,train stations and other transportation hubs.These firms see their customers as business travelers and people who fly for a vacation and then need transportation at the end of thgeir flight. Enterprise went after a different customer base. It sought to rent cars to individuals whose own cars are being repaired or who are taking a driving vacation.
The firm got its start by working with insurance companies. A standard feature in many automobile insurance policies is the provision of a rental car when one’s personal car has been in an accident or has been stolen.Firms like Hertz and Avis charge a relatively high daily rates because their customers need the convenience of being ear the airport or have their expenses paid by their employers. These rates are higher than insurance companies are willing to pay, so customers who use these firms end up paying part of the rental bills themselves. In addition their locations are also often inconvenient for people seeking a replacement car when theirs is in the shop. Enterprise located their stors in downtown and suburban areas where local residents actually live. The firm also provides local pick up and delivery service in most areas.It also negotiates exclusive contract arrangements with local insurance agents. T hey get the agents referral business while