Avis Budget Group

Avis Budget purchases the majority of its Americas fleet under manufacturer-guaranteed repurchase programs. These agreements obligate automakers to buy back vehicles at predetermined prices at specified future dates, effectively transferring residual-value depreciation risk away from Avis. The remainder of the fleet is acquired in open-market purchases, where Avis retains the residual-value exposure and later sells the vehicles through its own remarketing channels.

Joe Ferraro, CEO since 2020, oversees the capital allocation framework, while the corporate treasury and fleet-operations groups manage vehicle-financing strategies. Because fleet assets total billions of dollars and historically represented the vast majority of the company's balance sheet, these decisions are as central to the firm's profitability as rental pricing and revenue management.

Zipcar operates a membership-based, hourly car-sharing model distinct from Avis's traditional daily rental business. Acquired in 2013, Zipcar targets dense urban markets and university campuses where consumers need temporary vehicle access without airport-counter transactions. It contributes a small fraction of overall group revenue but provides a subscription mobility option that the traditional rental counters do not.

Yes. While the company operates corporate-owned locations in North America, Europe, and Australasia, the majority of its country presence is through independent franchise partners. Licensees operate under the Avis and Budget brands in more than 180 countries, and the company receives franchise fees rather than managing day-to-day operations in those markets.

For vehicles not covered by manufacturer repurchase agreements, Avis runs a proprietary remarketing operation. The company sells used ex-rental vehicles through wholesale physical and online auctions, direct-to-dealer channels, and increasingly through direct-to-consumer sales. The remarketing strategy aims to optimize the timing of vehicle disposition and the sales channel mix to maximize net proceeds.

Insurance replacement is one of the company's two core business lines alongside airport-based rentals. When a policyholder's vehicle is damaged and requires repair, Avis Budget supplies a temporary rental car under agreements with major auto insurers. This segment provides counter-cyclical demand relative to corporate and leisure airport travel because accident frequency is less correlated with economic cycles.

The Americas segment, covering the US, Canada, and Latin America operations, historically generates the large majority of group revenue. The International segment includes corporate-owned operations in Europe, Australia, and New Zealand, plus franchise fee income from licensed operators worldwide. Per the firm's public filings, Americas represented approximately 70 percent of total revenue in 2023.