Market Research and Feasibility Study Services for Car Rental and Car Sharing Businesses in the UAE

The UAE car rental and car sharing market is experiencing a dynamic transformation, driven by the country’s booming tourism, rapidly evolving smart mobility ecosystem, and shifting consumer preferences. Whether you’re a startup exploring car sharing models or an established player expanding your fleet, data-driven decisions are crucial to stand out in this competitive industry.

This is where market research and feasibility study services come into play. By understanding market dynamics, operational viability, customer preferences, and regulatory frameworks, you can mitigate risks and unlock new opportunities.

In this blog, we’ll explore the UAE car rental and car sharing market, the importance of market research and feasibility analysis, and how Aviaan can help your business thrive.

Market Research and Feasibility Study Services for Car Rental and Car Sharing Businesses in the UAE

Why Invest in a Car Rental or Car Sharing Business in the UAE?

The UAE offers a highly promising environment for mobility businesses. Key drivers include:

1. Thriving Tourism Sector

Millions of tourists visit the UAE annually, especially Dubai and Abu Dhabi. Many rely on rental vehicles to navigate the city conveniently. Rental demand spikes around holidays, festivals, exhibitions, and global events like Expo 2020 or COP28.

2. Large Expatriate Population

With over 85% of the population being expatriates, many residents prefer flexible car rental or car subscription services over car ownership due to cost savings and ease of relocation.

3. Rapid Urbanization

As UAE cities grow, the need for efficient transport increases. Car sharing offers a smart, sustainable solution to traffic congestion and parking issues in urban areas.

4. Government Support

The UAE government is heavily investing in smart mobility, electric vehicle infrastructure, and sustainable transport solutions. This opens doors for innovative business models in the vehicle sharing space.

5. Corporate Leasing Opportunities

Businesses in the UAE increasingly opt for fleet leasing over vehicle purchases, driving demand for car rental companies offering flexible packages and premium fleet management services.

Importance of Market Research for Car Rental and Car Sharing Businesses

Launching a car rental or sharing business without in-depth market research is risky and often unsustainable. Aviaan offers comprehensive market research services tailored to UAE’s automotive mobility industry.

Our Research Covers:

1. Market Size and Demand Analysis

Current and projected market size across emirates (Dubai, Abu Dhabi, Sharjah)
Segment-specific demand (SUVs, economy cars, electric vehicles)
Seasonal vs. year-round trends

2. Consumer Behavior Insights

Preferences in pricing, vehicle models, rental duration
Behavior of tourists vs. residents vs. corporate clients
Adoption rates of car sharing apps

3. Competitive Landscape

Benchmarking against key players (e.g., Hertz, Dollar, Udrive, Ekar)
Fleet sizes, pricing models, customer acquisition tactics
SWOT analysis of direct and indirect competitors

4. Location and Fleet Strategy

Identification of high-traffic areas (airports, malls, business parks)
Fleet mix recommendations based on local demand
Opportunities in EV and hybrid vehicles

Why a Feasibility Study Is Essential Before Launching

While market research gives you clarity on external factors, a feasibility study helps determine if your business idea is financially and operationally viable.

Aviaan’s Feasibility Study Includes:

1. Financial Feasibility

Initial capital requirement estimation (fleet, tech, insurance)
Cost analysis (maintenance, operations, staffing)
Revenue modeling based on realistic utilization rates
ROI projections and break-even analysis

2. Operational Feasibility

Fleet acquisition and maintenance planning
Hiring, training, and customer support setup
App or website infrastructure development
Integration with GPS, payment systems, and CRM tools

3. Regulatory and Legal Feasibility

RTA and transport authority licensing requirements
Insurance regulations for rental/sharing fleets
Data privacy compliance for app-based models
Terms and conditions, liability, accident coverage

4. Technological Feasibility (especially for Car Sharing)

Mobile app and booking platform development
GPS tracking and geofencing features
Keyless access and vehicle usage monitoring
Integration with e-wallets and real-time feedback systems

Car Rental and Car Sharing Market Trends in the UAE

Staying updated with industry trends is key for sustainability. Some major trends include:

1. Rise of Electric Vehicle (EV) Rentals

UAE’s push toward sustainability is boosting the electric car rental and EV-sharing market, especially in Dubai.

2. App-Based Bookings

Contactless, app-driven rentals are now the norm. Mobile-first services see higher adoption and customer retention.

3. Subscription Models

Customers prefer subscription plans over ownership—monthly packages with maintenance and insurance included are gaining traction.

4. Peer-to-Peer Car Sharing

Platforms allowing car owners to rent out their vehicles offer a scalable, asset-light business model.

5. Integration with Tourism

Car rental services integrated with hotel bookings or tourism packages create value-added services.

How Aviaan Can Help You Succeed in the UAE Car Rental / Car Sharing Market

At Aviaan, we specialize in offering tailored market research and feasibility study services for automotive businesses, including:

Market Entry Strategy

We help you define your ideal customer base, price points, and target locations for launch.

Financial Modeling

We create investor-ready financial plans, helping you forecast profitability and secure funding.

Regulatory Navigation

We simplify licensing, registration, and legal processes so you can stay compliant and focused on growth.

Operations Blueprint

We help design your fleet strategy, customer service model, and digital ecosystem.

Custom Reports for Stakeholders

Whether you need reports for banks, partners, or investors, we provide polished documentation with actionable insights.

Case Study: Launching a Car Sharing App in Dubai

Client: A tech entrepreneur planning to launch a fleet of electric vehicles via an app-based car sharing model.

Challenges:

Understanding RTA compliance for EVs
Estimating app development and fleet costs
Identifying high-demand urban zones

Aviaan’s Solution:

Conducted detailed market research across key Dubai neighborhoods
Designed a 3-year financial model with CAPEX/OPEX forecasts
Outlined regulatory roadmap with licensing guidance
Provided branding, pricing, and promotional recommendations

Outcome: The client secured investment and launched operations in 5 locations with 50+ EVs.

Conclusion: Drive Success with Aviaan

The UAE presents a golden opportunity for car rental and car sharing businesses, but competition, regulations, and consumer expectations make it essential to start smart. With Aviaan’s market research and feasibility study services, you gain access to expert insights, strategic planning, and ongoing support.

Whether you’re starting from scratch or expanding your mobility venture, Aviaan is your trusted consulting partner to help you reduce risks, unlock opportunities, and accelerate business success in the UAE.