Taking on the loaner shortage with rideshares
5 ways rideshare helps take on the loaner shortage
Nationwide, auto dealerships face a decision when it comes to their loaner cars. The new and used vehicle shortage has dealerships deciding whether to keep their loaner fleet, or take advantage of rising used car prices and sell them. Since profit tends to take precedence in this situation, customers are left waiting hours upon end to get their vehicles serviced, or are avoiding it altogether.
What if there was a way to cash in on your fleet, and also provide reliable rides to customers while they get their vehicles serviced?
The Rideshare Solution
Because operations departments account for almost 40% of a dealership’s profit, offering customers a transportation option is non-negotiable. Rideshare makes it easy for dealerships to serve more customers. Rideshare can also help lower costs and increase revenue. Here’s how:
Improve Customer Satisfaction Index (CSI) Scores
With rideshare, customer wait times are drastically reduced, especially in comparison to shuttles. Customers no longer have to wait while the driver collects enough passengers to make a trip, and then sit through multiple stops - a whole process that can take up to two hours. Now, customers are picked up in minutes, so they can get where they need to go—and back to dealerships—quickly.
There’s a lot on the line when you let a customer drive off in a loaner vehicle. Right now, dealerships foot the bill for insurance. With rideshare, they don't have to. Lyft and other companies have their own policies to protect riders and drivers, which can cut dealerships’ costs.
Increase service revenue
More than 70% of new-car purchasers take their service needs to a third-party mechanic. And customers who have access to reliable rides are more likely to book service appointments and approve additional service work. Ridesharing allows you to avoid losing customers to third party mechanics with an easy, on-demand way to transport your customer to and from your dealership when their vehicle is in need of service.
Right now, dealerships foot the bill for loaner insurance and maintenance, as well as shuttle driver fees and repairs. Rideshare companies have their own policies to protect riders and drivers, which can save dealerships on costs. As an example, eliminating the shuttle van and reducing demand for loaner cars allowed Mercedes Benz of Hoffman Estates to service 3-4 more cars a day, which also increased daily revenue by $2,100.
Rideshare has evolved a lot from its early years. It now emphasizes health and safety. Anyone who rides will have to accept our Health Safety requirements. This confirms that passengers and drivers will wear a face covering. They will also not ride or drive with Lyft if they have (or think they have) COVID-19. They will keep vehicles clean and sanitize their hands frequently. And, they will leave windows open when possible and avoid recirculated air when possible.