Alphabet is the fleet management and corporate mobility company of the BMW group. The company, which operates 75,000 multi-brand vehicles and serves more than 17,000 customers, is optimistic about the growth of the rental industry and advocates the economic, environmental and managerial benefits of leasing rather than buying.
-The rental sector closed 2023 with a significant growth. How do you evaluate last year’s results and the current state of the business?
-Renting is a booming model, and this is evidenced by the 16% growth in registrations to exceed 296,000 units in 2023, according to data from the Spanish Rental Association (AER). With these figures, we can talk about a consolidation in terms of our activities.
-What are the advantages it offers compared to other forms of vehicle ownership?
-Currently, rental is the first channel to exceed pre-pandemic records, meaning it is an established model with a bright future. Its weight in the total registration market exceeds 26%; Its development in the derivatives, vans and pick-up segment, which accounts for almost 46% of the market, is particularly positive (+5.5 points compared to 2022). The two main doubts that arise when purchasing any vehicle are the high cost and uncertainty about the types of drive. Compared to these, the rental model allows the user to cover the costs of vehicle maintenance, repairs and even paying taxes for a monthly fee. Added to this advantage is the fact of promoting more sustainable mobility by introducing more modern and efficient cars to the Spanish fleet. Moreover, it allows you to renew it more frequently, which means having a safer means of transportation.
“Car rental currently accounts for 26% of the total registration market”
-What are the service policies that enable Alphabet to position itself as one of the leading companies in its field?
We stand out by offering a first-class service tailored to our customers’ specific needs. This personalized ‘workshop’ service is possible thanks to our size and our philosophy that focuses on personalized customer service rather than an ambition to create volume. Undoubtedly, one of our clear competitive advantages.
-There are rental models suitable for both individuals and companies. For example, what benefits do they offer to self-employed workers and SMEs?
-Every customer has different needs and size is one of the most defining characteristics. Smaller customers (self-employed individuals and small businesses) require a more limited number of services, so offering them the possibility of scalable service packages (in our case ‘easy’, comfort and plus) is a must. Options increase for larger companies as they may need solutions for the control and management of their fleets, corporate ride-sharing services like Alphabet Share, or even our service. Alphabet Consulting to determine what their needs are and, in particular, how we can accompany them on the path to electrification and emissions reduction.
-How does the rental model fit into new urban planning plans and current mobility trends?
-If there are two mobility trends that are becoming increasingly important in our cities, they are pay-per-use and sustainability. Both trends are part of the DNA of renting and are therefore an ideal formula, now more than ever. Rental is a key player in sustainable mobility. According to the AER, currently more than 37% of rental registrations correspond to vehicles powered by alternative energies, and this figure is expected to increase in line with new mobility plans such as Low Emission Zones. In addition, leasing also facilitates the renewal of the vehicle fleet and the commissioning of more efficient vehicles with the latest technology. At Alphabet, we have a lot of experience in supplying fleets to public administrations, providing them with much more sustainable and efficient vehicles, and making the public administration an active actor in promoting the ecological transition of these organizations.
“Leasing facilitates the renewal of the vehicle fleet as it puts more efficient, sustainable and effective vehicles into circulation.”
-What measures does the company implement for sustainable mobility?
-As Alphabet, we are fully committed to sustainability and have developed measures both within the company and together with our customers. First of all, we are embarking on an ambitious electrification project with the installation of 65 charging points at our headquarters to date, and we aim to have at least 70% of our operating fleet electric by 2024. Consulting service to help them define a personalized mobility strategy that allows them to achieve their individual goals, highlighting our commitment to electrification and emissions reduction.
-What is the balance of these first two years you spent at the head of the company and what kind of growth prediction do you have for the coming years?
-My first two years at the helm of Alphabet have been exciting and the balance is obviously positive. For nearly 24 months we have faced major challenges arising from the changing social, political and economic context, but we continue to achieve our main goal of steady growth and have an increasing fleet volume. But we focus on what’s important: providing superior quality service to our customers. We also continued to innovate with solutions such as Alphabet Consulting or Alphabet Share, our corporate car sharing service. I can also announce that this year we will continue on this path with new differentiated digital tools that respond to our commitment to customers and society, which we hope will translate into ‘portfolio’ growth throughout 2024.