The fast increase in fuel prices has made it hard to profit as an Uber driver in Brazil. Because of that, an among of 30 thousand vehicles has been returned to car rental stores since mid of June, according to the Brazilian Car Rental Association (ABLA, in Portuguese). On the other hand, ABLA quotes that renewing the fleet is still a challenge in front of the lack of vehicles available in the market. On average, car rental stores have bought 33,664 cars per month in 2021 (up to September), a decrease of 25% against the monthly basis in 2019.
“The market for drivers is still not recovering. We believe that the recovery will happen if the fuel price return to a low level. And if the apps readjust the fares so they (the drives) can recompose the monthly income”, quoted the president of ABLA, Paulo Miguel Junior, at a press conference this morning.
Nowadays many customers are complaining about leck of drivers available. Uber and 99, though, do not confirm that they have fewer workers available. Nevertheless, associations that represent the drivers have already confirmed the stampede.
According to ABLA, drivers were responsible to rent 200 thousand vehicles on the beginning of 2020. That number has decreased dramatically (up to 80%) during the edge of the crisis in mid-April. Rentals returned to the same level in December.
The new losses have begun after July altogether with the fuel price increase. Today, drivers rent close to 170 thousand cars.
Renewing the fleet is still a challenge. With covid-19, automakers are asking for up to 300 days to deliver a car. Before, the average was 90 days, depending on the model of the car. Without new assets, the average age of the cars has increased to 23 months – against 15 before the pandemic. According to ABLA, automakers will find normalization just in the mid-2013s.
The scenario is worst for the small stores. According to ABLA, Brazil has 11 thousand car rental stores. “There are cars with 36 months of use”, said Miguel. On the leaders' side (Localiza, Unidas e Movida), the average age has also increased, but it is close to 15 months.
With that in mind, Miguel has reinforced the fears about more consolidation in the car rental sector, such as Localiza and Unidas merge proposal – which is been evaluated by regulators.
“The mid and small business has not been able to receive cars”, said Miguel. “It will always exist differences between big and small business, for sure. But that difference should not be that huge”, said.
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