Page 12 - GIADA Jan-Feb 2020

MARKETING

Car Dealers in ‘Best Position’ to Serve

Uber, Lyft Drivers

Brian Allan of HyreCar urges dealers to think of their used-car inventories

as sources of recurring revenue.

By Steven Finlay

Today’s technology expedites dealers entitled Auto Revolution. “They take care
selling and renting to that growing group, of them (in part) because they get customer
he says, adding that rent-to-own programs reviews on the condition of the vehicles.”
are becoming popular.
The revenue from renting lot vehicles will
Allan sees dealerships as occupying the exceed their potential depreciation losses,
best position to serve that sector. He Allan says.
urges dealers to think more of their used-
car inventories as sources of recurring He adds: “People who rent
revenue, not as depreciating assets nor cars for ride sharing and
as merchandise limited to a one-time
transaction. ride hailing need to be in the
dealership eco-system.”
Auto retailing will stick around in coming
Vehicles lingering unsold on dealership years, but TaaS – which includes fleet HyreCar has about 145 clients, mostly
used-car lots often are regarded as loser sales – will become a greater force than independent dealers. The company now
cruisers, their values depreciating daily. individual vehicle sales, he says. is wooing franchised dealers. Allan has
had talks with automakers about getting
But auto-retailing veteran Brian Allan sees He points to how the popularity of ride- involved with HyreCar. He sees off-lease
them as something different: profitable hailing companies such as Uber and Lyft vehicles as “beautiful” transportation-as-a-
opportunities for dealers to rent to a has “dramatically” affected car-rental service prospects.
growing number of drivers in the booming agencies. They have responded by offering
age of transportation as a service (TaaS). vehicles to ride-sharing and ride-hailing He says automakers have told him: “If you
drivers. But dealers have it over rental can convince dealers, we’re in.”
There is a shortage of vehicles companies there, he says.
for drivers in new-age That’s because dealers already have an Allan started his automotive career in 1980
as a car salesman representing Lincoln,
transportation networks such auto-retailing infrastructure. Unlike rental Mercury, Peugeot and Lotus in Beverly
as Uber, Lyft and package- companies, dealers run parts and service Hills, CA, while attending Cal State.
departments. They also take trade-ins, he
delivery services. adds. “Dealers have the real estate, parts He later worked his way up the executive
and people.” ranks of the California-based multi-
More than 50,000 people monthly apply as franchise Galpin Motors, No.45 on the
drivers for such work, Allan says, adding About one in three rideshare drivers who 2019 WardsAuto Megadealer 100.
that up to 40% of applicants lack a qualifying rent a vehicle will buy it within six months,
vehicle. They may own a motorcycle, but Allan says of why he urges dealers to offer He retired from Galpin in 2018 after 32
not a car. rent-to-own programs. years and joined HyreCar the same year.

“If it has four wheels, auto dealers are Some dealers fear if they rent vehicles to Drivers renting cars by the hour is the next
in the best position to leverage it,” says that group, the drivers will rack up too TaaS trend, he predicts. n
Allan, senior vice president-strategic many miles and possibly abuse them.
partnerships for HyreCar, a 4-year-old
digital marketplace that connects dealers In reality, TaaS drivers take care of their
with professional-driver candidates in need cars, owned or otherwise, Allan says at
of vehicles. a recent J.D. Power industry conference

10 | GIADA Independent Auto Dealer JAN/FEB 2020