ST. LOUIS, Nov. 1, 2019 /PRNewswire/ -- Customers who rent vehicles in Pennsylvania are best served by marketplace parity and common-sense rules that treat all service providers the same, including the growing array of so-called peer-to-peer (P2P) rental companies.
That was the key message delivered by Enterprise Holdings – which owns the Enterprise Rent-A-Car, National Car Rental and Alamo Rent A Car brands – during a recent invitation-only panel discussion hosted by the Aviation Council of Pennsylvania (ACP). The ACP is a nonprofit trade association comprised of airports, fixed-base operators, flight schools, business aircraft operators, aerospace manufacturers and suppliers, air charter operators, and other aviation organizations and suppliers all working together to improve and promote the aviation industry throughout the Commonwealth of Pennsylvania.
The panel discussion – called "Current Ground Transportation Issues: TNCs, Taxis, and Turo, Oh My!" – was part of the 39th Annual Pennsylvania Aviation Conference in Pittsburgh. The panel addressed a series of topics critical to airport operations, trends in transportation and local legislative issues that will be addressed during the final months of this year's legislative session.
The panel included representatives from Pittsburgh International Airport and aviation policy experts from the firm Kaplan Kirsch & Rockwell, as well as Enterprise Holdings. A significant portion of the discussion focused on peer-to-peer car rental companies' claims that they should not be subject to the same safety and recall standards as existing car rental companies and that peer-to-peer car rental customers should not be subject to the same fees as other car rental customers.
During the Oct. 28 panel, experienced airport attorney David Bannard of Kaplan Kirsch & Rockwell further confirmed facts about peer-to-peer car rental companies, stating, "It is a rental car business and it is something that is being operated on the corporate level for profit. It's not just this benign sharing of a single vehicle."
Enterprise Holdings also stressed that it supports Senate Bill 904, a pro-consumer piece of legislation recently introduced in the Pennsylvania General Assembly and referred to the Senate Consumer Protection Committee. The bill – sponsored by Senator Pat Stefano of Fayette County – helps ensure that whenever and however cars and trucks are rented to the public, all safety requirements are met, proper insurance is provided, and proper taxes are paid.
Senate Bill 904
Enterprise Holdings anticipates that Senate Bill 904 not only will receive bipartisan support in Pennsylvania, but also will facilitate a much-needed public debate about how consumer transparency and fair competition benefit all airports and the travel industry across the state.
"This legislation is a common-sense solution for how we define and regulate rental car operations in Pennsylvania," said Sen. Pat Stefano, lead sponsor of SB 904. "It will bring all types of vehicle rental platforms under the same standards to ensure consumer protection, while still allowing the industry to continue to grow and innovate."
In total, at least 19 U.S. airports have issued cease-and-desist orders concerning peer-to-peer operations. Plus, legal action has been taken in conjunction with several airports across the country, including Tampa International Airport, Los Angeles International Airport, Massport (Logan International Airport) and San Francisco International Airport.
Parity and Fairness
"This effort is all about parity and fairness, in Pennsylvania and every other state. It just doesn't make sense for one section of this industry to benefit from loopholes and special carve-outs," said Ray Wagner, Enterprise Holdings' Senior Vice President of Government and Public Affairs. "Enterprise welcomes each and every competitor into the industry because, at the end of the day, we're all in the business of renting vehicles — whether it's for an hour, a day, a week or longer."
Wagner noted that states already have well-established regulations governing car rental taxes and fees – not to mention consumer protections around disclosures and sale of ancillary products: "In Pennsylvania and across the country," Wagner said, "all peer-to-peer operators should be required to comply with long-standing and state-specific regulations that govern car rental transactions."
States that already hold peer-to-peer providers publicly accountable include Colorado, Indiana, Maine, Maryland and Ohio. Moreover, coalitions in Arizona, California, Florida, Texas and Illinois have been established to address peer-to-peer rental issues. Participants range from the Associated Industries of Florida and American Car Rental Association members like Enterprise and Hertz, to the Illinois and Texas Municipal Leagues. Numerous regional and local agencies — for instance, the Houston Sports Authority, Arizona Tourism & Lodging Association and the Cactus League — likewise have been weighing in on the issue of lost tax streams.
Although many peer-to-peer companies attempt to cultivate an image as new businesses struggling to survive, a number of well-established companies are entering the peer-to-peer rental business as investors. "Overall, these are very sophisticated, well-funded and tech-savvy companies," Wagner stressed. "As peer-to-peer car rental companies continue to amass greater wealth, they can no longer avoid the attention of state regulators."
Turo, the largest peer-to-peer car rental provider today, is particularly outspoken with an impressive list of investors. "Ironically, this past summer a $250-million investment in Turo was announced," Wagner pointed out. "Meanwhile, they have historically and consistently marketed themselves as car rental. One is left to ask ... how can you tell customers it is a better way to rent cars and, at the same time, tell elected officials that it is not renting cars?"
About Enterprise Holdings
Enterprise Holdings, Inc. manages the largest and most diverse privately-owned fleet in the world through an integrated network of more than 10,000 fully staffed neighborhood and airport rental locations. This global network of independent regional subsidiaries and franchises also operates the Enterprise Rent-A-Car brand – as well as the National Car Rental and Alamo Rent A Car brands – in 100 countries and territories. Combined, Enterprise Holdings and its affiliate Enterprise Fleet Management, which currently manage more than 2 million vehicles and employ 100,000 worldwide, accounted for $25.9 billion in revenue in fiscal year 2019. In total, the annual revenues of Enterprise Holdings and Enterprise Fleet Management rank near the top of the global travel industry, ahead of many airlines and most cruise lines, hotels, tour operators and online travel agencies. Enterprise Holdings currently is ranked as one of America's Largest Private Companies and if it were publicly traded, would rank on Fortune's list of the 500 largest American public companies.
SOURCE Enterprise Holdings, Inc.
