28 Jan Turning Rideshares into Dealership Profit | The Future of the Industry
We’ve explored how rideshares could positively impact dealerships in the past, but Reedman Toll Auto Group is creating a real-life precedent by developing a ride-share focused venture. While the Reedman Toll model does require significant time, energy, and capital investment, we suspect this may be the dealership rideshare model of the future.
The Rideshare Dilemma
Those considering driving for a rideshare often face a similar problem; how do they acquire a vehicle? Many articles have been written on the topic highlighting the programs Lyft and Uber have launched to help drivers rent vehicles for driving, but these programs are often costly and don’t allow rent-to-purchase options.
Seeing this dilemma, Reedman Toll created a second company that purchases gently used cars from one of seven Reedman Toll dealerships and then rents or sells those cars to rideshare drivers. This mimics the business model of companies like HyreCar but keeps the source of vehicles as the dealership. They also offer extra benefits for drivers on service work like free oil changes, brake pads, and discounts on service and maintenance.
We’re excited to see dealerships carving out their place in this new world of transportation. By developing this business, Reedman Toll has created a duplicatable model that any dealership could mimic. The truth is someone will meet the demand of rideshare driver looking for programs made for them, will it be your dealership?
Do you think rideshares are a worthy market to pursue? Why or why not? Leave a comment below!
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