The drive for efficiency is pushing operators towards consolidation

However, it is very difficult to ignore the powerful message conveyed by these figures: NLT has squeezed costs as far as possible, despite demand having doubled over the past ten years. It is therefore reasonable to conclude that the drive for efficiency is not driven by a shrinking market but forms part of this industry’s competitive strategy, which is geared towards stimulating demand through ever-lower prices.

It is even more reasonable to conclude that this approach has gone down well with customers – or at least with fleet operators, who, together with the public sector, still account for over 85 per cent of turnover. The question is whether it appeals to others as well – those individual customers, with or without a VAT number, who currently account for around 13–14 per cent of turnover (as they have done for far too many years) and whose numbers could increase significantly if given the right incentives.

It is precisely these areas that other car hire companies – whether newly established or relaunching to ensure they are ready – are focusing on. This is the case with Agos Rent and, to some extent, Santander Renting – both subsidiaries of two banking giants – as well as ItalRent, a subsidiary of a leading car distribution group, and Mobilize, which, whilst not a start-up, is nevertheless determined, under its new management, to offer the Renault network the right product for its customers.

In conclusion, the concentration and proliferation of operators are not a contradiction. Rather, they represent the supply side’s response to two very different segments of demand. One segment is solely focused on the monthly payment. You can offer them the best service in the world and even let them experience it first-hand, but when faced with a subscription fee that is ten euros cheaper, they won’t think twice. The other segment, perhaps, is prepared to prioritise other aspects of the service.

Yes, scepticism is only to be expected, given that, despite all the promises, we have yet to see a product that is genuinely different and truly effective for these customers, offering the services they want, the way they want them and when they want them. Perhaps it does exist but they’re not saying so: marketing in Italia is almost never comparative.

Finally, we must also consider the barriers to exit for these two customer segments. Although they are faced with a service that leaves a lot to be desired, fleets do not really have many alternatives if they do not want to revert to mileage allowances for employees’ own cars.

The little ones, on the other hand, certainly do: getting out of an NLT and going back to a finance deal takes no time at all – after all, it’s still just a monthly payment.