City Ditching Car Ownership for Rentals: 20% Surge

Mexico City, Mexico — The car rental industry, traditionally tied to tourism, is undergoing a significant shift as urban residents increasingly opt for short-term rentals over vehicle ownership, according to Edson Arteaga, founder and CEO of Drivana, a peer-to-peer car rental platform. The company has observed a 20% rise in urban car rentals, reflecting a broader trend in consumer behavior.

A Shift in Rental Demand

Arteaga explained that Drivana’s platform, which operates similarly to Airbnb but for vehicles, is now frequently used by city dwellers who require temporary transportation for work or personal commitments.

“We’ve found that many people within the same city see us as an alternative not only to traditional rental companies but also to car ownership,” Arteaga said. “Some users rent at least three times a month because they need a vehicle for work obligations but don’t require one full-time. Renting through Drivana makes more sense for them.”

This trend aligns with the “bleisure” phenomenon, where business travelers extend trips for leisure, further blurring the lines between rental purposes.

Industry-Wide Growth

The Mexican Association of Vehicle Leasing Companies (AMAVe) reported that its members increased purchases of light vehicles for leasing by 27.7% year-over-year. Mexico City has emerged as the strongest market for urban rentals, while tourist destinations like Cancún, Playa del Carmen, and Tulum remain active but face challenges from informal operators.

AMAVe noted that its affiliates operate over 20,000 vehicles dedicated to travelers in these tourist hubs, accounting for 20–25% of Mexico’s daily rental fleet. However, Arteaga highlighted the prevalence of informal rental practices in the sector.

“Unlike the U.S., where three major companies dominate 95% of the market, Mexico’s rental industry is fragmented,” he said. “Many small owners manage micro-fleets through WhatsApp or Facebook, often without proper technology, validations, or specialized insurance.”

Challenges and Opportunities

The informal market poses risks to consumers, including inadequate insurance coverage and lack of regulatory oversight. Meanwhile, AMAVe’s data indicates a growing formal leasing sector, with a current fleet of 260,000 vehicles nationwide.

As urban rental demand rises, platforms like Drivana aim to capitalize on the shift by offering structured, tech-driven solutions. The trend suggests a long-term transformation in how Mexicans approach transportation, moving away from ownership toward flexible, on-demand alternatives.