Roy: Car rental profits rely on defleeting timing and rental yield
Biz Kundu Roy · He Just Sold 25% For $2m, Can he Hit $1.2m ARR Next? · Mar 4, 2022 · at 10:29
Biz Kundu Roy, founder of car rental SaaS Coaster, explains the core financial mechanics behind vehicle rental operations.
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“Rental companies earn income from two ways. One is buying and selling of the vehicle at the right time. So they buy in bulk at a reduced cost and then sell their assets at the right time. To optimize the value of that asset. So defleeting is essential. And in the meantime, then they are sort of earning through the depreciation of the vehicle by putting it out on rental.”
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