08 August 2017 by pdonnat
When I can just get an all-inclusive large van delivery service for just a third of the price. Moving from one place to another in London is a very frequent trouble for young Londoner. With no car in the city, they could eventually rent a van from Avis to move their belongings. But, they have a much better deal in hiring a van with a driver moving everything door to door for just a third of the rental price. Moreover, they do not have to drive on the wrong side of the road as people are used to do in the UK. Avis Budget Group, Inc. reported weaker quarterly earning yesterday. From common experience, this should not be a surprise. The equity was down today 10% and the CDS 30bps wider. Car rental business is facing a very challenging environment and the hopes in new businesses - like the fleet maintenance - have been damped by the weakness of the core rental business including the used-car lower prices. The company should accelerate its transformation to overcome the deeper weakness of its core historic business. The recent bright spell for Avis could be short lived.