Ground Transport

Hertz knows it needs to get more involved in ride-sharing to keep itself relevant but isn't yet sure what that solution is. It doesn't see its current Lyft partnership as strategic, but it was still willing to test the ride-sharing waters.

Avis Budget Group's rental business in the U.S. was unexpectedly weak in early 2016. The good news is that a European car rental resurgence seems to be in the offing for the company.

So far, it looks like safety and security concerns won't deter North American travelers from renting cars in Europe this summer. This could change once Q2 bookings data are released, though.

It's probably only a matter of time before governments and other public services begin to leverage the power of ridesharing services for the public good.

Lyft still has lots of ground to cover if it wants to catch up to Uber's business with corporate clients, but the company is smart to get in front of managers who make decisions about employee travel.

Uber has built a dominating advantage when it comes to ground transportation in corporate travel. But cheap fares from Lyft, combined with happier drivers and more robust expense reporting tools, will likely lead to increased growth at the expense of Uber's dominant market share. The entry of ride hailing apps into the mainstream also presages a continued decline in both taxi rides and car rentals.

The substitution effect is real, and car rental companies for the first time are beginning to look like transitory businesses.

Hertz's investment in on-demand valet-parking service Luxe should be seen in the context of Accorhotels recently acquiring Onefinestay. Car rental companies and hotels are both feeling pressure from the sharing economy and they will be making more such investments and acquisitions as these startup mature.

Bikeshare networks will likely struggle to gain traction until they connect users to more intercity transportation options.

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