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Data Driven Discussions Podcast – Data Driven: The Business of Rental Cars

In episode 102 of Data Driven Discussions, Sean Byrnes, co-founder and CEO of Outlier interviews Alex Shartsis. Alex is the CEO of Perfect Price, and an expert on both dynamic pricing and the rental car industry.

The rental car industry seems very simple to most of us. Yet, Alex tells us that this business is far from simple. The rental car industry is complex, competitive, and data-driven. These businesses are great case studies that highlight the importance of understanding not only user-engagement and cash-flow metrics, but also asset values.

“Hertz ended up taking a $140 million write-down because of that decision.” – Alex Shartsis, CEO, Perfect Price

In this discussion, we’ll answer a lot of questions about this industry, including:

  • What is a “daily dollar average” and why is it a critical KPI for rental car companies? (3:45)
  • Why would someone rent their car for so little that they lose money on each rental? (11:19)
  • What data mistake cost leading rental car company Hertz 70% of their market cap? (12:47)

Listen to the episode below:

July 19, 2017 | Host: Sean Byrnes, co-founder and CEO of Outlier

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