The car rental sector in Singapore influences the economy to a great extent. There are many agencies that are the key players in the sector and bag the major share of revenues generated. The competition is very intense in the Singapore car rent services. It experiences boom during the vacation time when most of the customers avail the service for driving in Singapore leisurely. During this time, generally the customers might experience a hike in the rates of services due to saturation in supply. But as it is well known, customers are ready to pay heavy charges as well then without any scope of bargaining. So should we say that the car rent services enjoy a monopoly considering the bargaining power of suppliers per the Five Forces model proposed by Michael Porter? Probably to some extent it is true during the peak period. However, not always as otherwise, it is the bargaining power of buyers that supersedes the suppliers.

The evergreen demand comes in from the airport drop and pick-up services. This type of service is in full swing throughout the year. Be it the natives or the people coming and going for business trips, everyone prefers renting a car when it comes to travel to and fro from the airport. This is the best, convenient and cost-effective way to plan your travel to airport. With huge competition in the sector, the most lucrative factor is that you can stop worrying of being charged more than what is ethical and ok. You would not be subjected to cost-advantage and variation as if you find some service provider to be charging more; you can always turn to other options. Moreover, you can be assured of the quality of service being provided as if the provider really wants to survive the market and make for his investments, then he need to really stand his competitors.

There is still a huge scope for the car rental sector in Singapore seeing the surge in the demand. It is expected to grow further. Besides, the average run of the rental cars is approximately 30000 miles after which they are shifted to the used cars and need to be replaced with the new ones. There needs to be vertical integration in the industry to make it a secured sector. Tie ups with the automobile makers can be a great option to survive in the long run. Besides, it also depends on the market requirements and the culture that is native to the place. In Singapore, the use of economy class cars is good due to the high demand in the corporate sector. There is however scope for other cars to grow as well.