11 Sep 18

Localiza Car-as-a-Service, Flexible and Fast

Brazilian car rental and fleet management company Localiza has developed flexible and fast ways to provide cars for personal use.

The first, known as Localiza FLEX, entails renting a car on a monthly basis. “Unlike some other monthly services which may require a commitment of a year, we only ask for one month, quite a flexible option for our customers,” director of client pricing and experience Guilherme Braz told Global Fleet.

Considering an economic car such as the subcompact Chevrolet Onix, using it for one month would cost 1,573 reais (US$384) with a maximum allowed usage of 3,000km.

2019 Chevrolet Onix (Source: GM)

Localiza offers progressive discounts for longer contracts of 2-6 months as well as corporate discounts, depending on the number of cars needed. Keep in mind that the fee also covers the cost of vehicle taxes, insurance, maintenance, and repairs.

Local insurance company Porto Seguro offers a similar service known as Carro Facil (easy car) in which the same car would run you 1,385 reais per month. However, it requires a one-year commitment, and the limit on usage is 12,000km (1,000km per month). It does offer packages with more kilometers, though.
“In order to maximize the use of the asset (car) and for drivers to get the best benefit, we have found that we are well positioned in setting a 3,000km limit per month,” said Braz.

“As Localiza’s objective is to provide a full range of services for private use as well as corporate use, we offer several mobility solutions,” Managing Director Joao Andrade told Global Fleet.

One is rent-a-car of which the company already has more than 150,000 cars in its fleet. Considering a daily rate of about 90 reais, rent-a-car – through Localiza FAST – should be the option of choice if needing a car for two weeks or less.

Localiza FAST is a quick and efficient way to pickup your car rental. You use a mobile App to reserve your car and then pick it up at the nearest Localiza agency without the need to talk with an attendant. The car door is opened via your cell phone and started after locating the keys in the glove compartment.

Finally, Localiza also recognizes the importance of ride-hailing services such as Uber so it is also focused on supporting these high usage drivers (5,000km per month). According to the Localiza FLEX table, a Chevrolet Onix would run about 100 reais more than the aforementioned package with the 3,000km limit.

“Uber drivers are best served by our monthly service as they intend to use the car a lot (around 70 hours a week),” said Andrade who is also a member of the Global Fleet advisory board Latin America.

Authored by: Daniel Bland