Summer Insights for Owners
Over the summer, many business Owners are limiting their operations and facing difficult decisions about what to do with their vehicles. We, like you, understand that adapting to this unique problem is as challenging as it is important.
Unprecedented times like these are when it is best to connect and expand with your business network. If your vehicles are idle, there are plenty of trusted businesses on COOP that want to rent the vehicles you’re not using. Explore this guide on how your business can improve its vehicle utilization this summer.
Refrigerated Vehicles Are in Demand
One of our biggest seasonal demands that we see each year from June through August is for refrigerated vehicles. During this time of year we typically see an impressive 54% increase in demand. Refrigerated vehicles, where COOP pays Owners both for their mileage and their refrigerated hours, are often requested to keep the summer heat from spoiling loads.
Normally, that increase in summer demand for reefer rental vehicles was for events and entertainment companies when there are many outdoor events and summer festivals. This year, businesses that rely on large gatherings like bars, restaurants or event companies have had their operations limited.
At the same time as some businesses are being limited, we’re seeing businesses that need to meet increased refrigerated demand. Transporting medical supplies and other relief is a big one but other businesses need them too. As people shop for groceries from home, businesses are in need of reefer vehicle supply to match this new kind of demand.
As an example, a restaurant’s refrigerated truck that would usually accommodate indoor dining can now offset its expense by renting it to a local meal delivery service. COOP is part of the answer to how businesses all around can continue to get their trucks out on the road and achieve better fleet utilization.
More Final Mile Rentals by Essential Businesses
This summer’s unique marketplace means more businesses are looking to rentals for flexibility outside the fleet they own. Vehicles that can handle nondurable and durable goods for local as well as out-of-state freight are all welcome additions on the platform.
In previous years, we noticed that July leading into August are some of the ‘hottest’ months for truck and trailer rental requests on the platform. Across markets, companies sought more medium- or heavy-duty rental vehicles that can handle long hauls. Larger cargo capacity vehicles such as specialty equipment flatbeds, 26’ trailer, or 26’ box trucks shouldn’t sit during these months.
So what makes this year different? Due to the spread of coronavirus this year, over 30 states have imposed restrictions on essential vs. nonessential businesses. As a result, we’ve seen changes in what kinds of vehicles need to be rented depending on whether the rental vehicle is for an essential or nonessential business. Some essential business needs that we’ve seen more activity in recent months are:
- Food Supply, which need refrigerated trucks and trailers for freight in the summer heat to keep food and nondurable goods cool
- Healthcare Operations, which need vehicles both dry and refrigerated for the relief effort
- Shipping Businesses, which need dry light- and medium-duty trucks for final mile deliveries as e-commerce use has increased
Nonessential businesses that leverage the platform by renting out their idle trucks, tractors, or trailers means that they can still gain profit from the demand of companies that are considered essential.
Tips to Generate Revenue This Summer
With a great deal of change comes a very competitive rental market. Some of the biggest indicators for rental activity of our owners are:
- Set more availability, vehicles that are listed as available at the beginning of the work week are more likely to be rented.
- Set a good daily rate, and offer discounts on long-term rentals to generate a consistent revenue source.
- Promote your businesses, people in your network could be the ones who need the vehicles that you have sitting.
- Add out-of-state flexibility to vehicles, the supply chain is changing and rental demand may not be as local as it once was.
Many vehicle owners across our markets have been able to pivot their business using these tips during the pandemic. To make up for lost revenue from event cancellations, LiveShow Logistics started to rent their vehicles on COOP. They’ve been able to cover their lease payments with just a few rentals to essential businesses in their local Texas market. This is just one of the many examples of why you can be confident to optimize your vehicle utilization and reduce transportation costs with COOP.