Joao Andrade, Localiza: Increasingly focusing on car and fleet rental in Brazil
Owning a car is one of the main goals of individuals in Latin America. However, according to Joao Andrade who is the general manager of Brazilian fleet management and car rental company Localiza, there may be better things to focus on. Join Global Fleet in our latest one-on-one with the executive.
Global Fleet: First of all, could you give us an idea of the types of vehicle leasing and rental services available in Brazil?
Andrade: The types of leasing and rental services in Brazil are growing as the concept of efficient mobility matures. Besides the traditional car and fleet rental businesses, we see companies developing new models such as car sharing (rent-a-car per hour) or peer to peer sharing (individuals renting out their personal vehicle).
As for Localiza, we are more focused on traditional services such as car and fleet rental.
Global Fleet: Could you explain the difference of car and fleet rental?
Andrade: The first consists of renting cars for short periods (daily, weekly or monthly) for individuals and companies through our own agencies or through franchised locations. Our rental agencies are located at airports and at many strategic points throughout cities.
As for our fleet rental service, it consists in long term agreements (2-4 years), mostly to companies that want to focus their capital and efforts on their core business. With this product we provide our clients not only with the car, but with all the management that comes along with it.
This includes the purchase, licensing, maintenance, the management of tickets, and other things such as taxes, documentation, and the sale of the vehicle.
Global Fleet: And what is the key to creating a quality product?
Andrade: The client is our main business driver so focusing on the quality of the services we provide is a must. Our job is to assure a great experience for our clients so that we gain loyalty from them. Besides customers service, we need to provide our clients with great cars, the best solutions available, and do this in a quick and efficient manner.
Finally, the integration of our IT team with other business departments is another important factor.
Global Fleet: What are the key trends taking place in your line of business right now?
Andrade: Some examples of trends could be the increasing idea of renting cars or taking short Uber rides.
Another upcoming trend is the use of more efficient energy, something that our company is quite concerned about. We are using ethanol in flex-fuel vehicles as well as investing in hybrids. Localiza is actually the only car rental agency in Brazil that offers the hi-tech Toyota Prius hybrid.
The use of technology is also something to point out. To help our clients with their digital transformation, we have reinvented some of our key process and systems through significant investments in technology. One is our connected car technology which gives added value to all of our fleet rental clients.
Global Fleet: Speaking of technology, could you tell me a bit about Localiza Fast?
Andrade: Sure, Localiza Fast is an innovative and exclusive way to rent a car in a fast and fully digital manner. With this technology, customers can open their car rental via a cell phone app and then drive away from rental facility without ever going through the service desk procedure.
Being a pioneer in mobility by offering products such as Localiza Fast is one of the essential factors of us being chosen for mobility solutions.
Global Fleet: Any last words?
Andrade: Sure. Besides the high cost of having a car in Brazil, car ownership greatly impacts the increasing number of vehicles on streets. With this in mind, many people have started to consider mobility solutions which veer away from car ownership and look more toward the simple use of a vehicle.
Finally, I’d like to say that we see the car rental business as vanguardism. It is this business model which belongs to the mobility and sharing economy universe.