On the Benefit of Combining Car Rental and Car Sharing

36 Pages Posted: 25 Oct 2023

See all articles by Matthias Soppert

Matthias Soppert

University of the Bundeswehr Munich

Beatriz Brito Oliveira

Faculty of Engineering of the University of Porto; INESC TEC

Ralph Angeles

Bundeswehr University Munich

Claudius Steinhardt

University of the Bundeswehr Munich

Date Written: September 27, 2023

Abstract

Car rental and car sharing are two established mobility concepts which traditionally have been offered by specialized providers. Presumably to increase utilization and profitability, most recently, car rental providers began to offer car sharing in addition, and vice versa. To assess and quantify benefits and drawbacks of combining both into a single mobility concept with one common fleet, we consider such combined system on an aggregate level, replicating demand patterns and rentals throughout a typical week. Our systematic approach reflects that, depending on a provider’s status quo, different business practices exist, for example with regard to the applied revenue management approaches. Methodologically, our analyses base on mathematical optimization. We propose several models that consider the different business practices and degrees to which the respective new mobility concept is offered. To support mobility providers in their strategic decision-making, we derive managerial insights based on numerical studies that use real-life data.

Keywords: shared mobility, car rental, car sharing, availability control, pricing, optimization

Suggested Citation

Soppert, Matthias and Oliveira, Beatriz Brito and Angeles, Ralph and Steinhardt, Claudius, On the Benefit of Combining Car Rental and Car Sharing (September 27, 2023). Available at SSRN: https://ssrn.com/abstract=4585411 or http://dx.doi.org/10.2139/ssrn.4585411

Matthias Soppert

University of the Bundeswehr Munich ( email )

Werner-Heisenberg-Weg 39
Neubiberg, 85577
Germany

Beatriz Brito Oliveira (Contact Author)

Faculty of Engineering of the University of Porto ( email )

Rua Dr. Roberto Frias
4200-464 Porto
Portugal

INESC TEC ( email )

Porto
Portugal

Ralph Angeles

Bundeswehr University Munich ( email )

Claudius Steinhardt

University of the Bundeswehr Munich ( email )

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