Philippines Car Rental, Car Leasing, Cab Aggregator and Yellow Taxi Market Outlook to 2023: Ken Research
Philippines Car Rental MarketPhilippines Car Rental Industry Revenue has grown at a positive CAGR during the period 2013-2018. This growth was supported by the increase in the number of tourist arrivals in the country, government initiatives to promote tourism and rise in fleet size along with general economy and business trip growth. The market faces challenges such as the inconsistent local transportation, highly congested roads and unsafe driving practices. The car rental market is concentrated with a few players. Major global players such as Avis, Hertz, Nissan Rent-A-Car and Europcar are well established in the market. Economy cars dominated the market of car rentals in Philippines in the year 2018. The segment has grown due to its affordability, more compact cars on the roads due to increasing traffic problems and increasing business related trips to the country. Car rental for leisure purpose contributed a major share for the industry in 2018. Rented cars are majorly demanded by tourists who visit the country for holidays or recreational purposes. Luzon contributed the highest revenue share in the overall car rental market in Philippines in the year 2018. Luzon provides the maximum business to car rental industry owing to its high population, diverse tourist attractions and business establishments.
In the future, it is expected that the demand for rented cars will be augmented largely due to the growth in the tourism industry, supported by the government initiatives and improvement in infrastructure, construction and real estate sector in the country.
Philippines Cab Aggregator Market
Philippines Cab Aggregator market is at the growing stage supported by the factors such as, mobile phone and internet penetration, affordability offered by ride sharing service, consistent means of transportation, professional service offered by the cab drivers, convenience experienced by customers while booking cabs through internet based applications.
The market faces challenges such as slow speed of internet, less coverage in the non metropolitan regions and a monopolistic environment for the new companies to establish. Grab has a monopoly in the Cab Aggregator Market. The maximum number of cabs is mainly in the metro cities due to the better access to the internet facility and high demand from the daily commuters as the public transportation is weak in the region.
Philippines Car Leasing Market
Philippines Car Leasing market is at the growing stage supported by the rise in demand by legal entities, and influx of Chinese immigrants following the Pro China Policy of Philippines. The market faces challenges such as companies engaging in price wars, absence of a regulatory body and car leasing companies facing problems while reselling the used vehicles. The car rental market is concentrated with a few players such as Nissan Rent- A- Car, Europcar and Hertz. Sedans dominated the market of car leasing in Philippines in the year 2018. The segment is driven by the factors such as corporate leasing for employee commute and rise in business activities where Sedans are preferred due to affordability. Three year lease period contributed the most to the overall market of car leasing market in Philippines in the year 2018. The segment is majorly preferred as after the duration of three years, the additional cost (maintenance, insurance and repairs) rises, also, the client does not have to bear the cost of finding a new vendor each year and upgrade to newer models. In future, it is anticipated that Philippines car leasing industry revenue will increase at a positive CAGR during the period 2018–2023E. In Philippines, it is expected that the demand for leased cars will be further augmented largely due to the cultural habit of local people of the country to experience newer car models, higher expat ratio and introduction of electric vehicles in the country.