Avis Budget Group, Inc. (CAR): Business Model Canvas [Dec-2025 Updated]

You're looking to understand how the rental giant is navigating the shift to on-demand mobility, right? Well, after two decades analyzing these giants, I can tell you the Business Model Canvas for Avis Budget Group, Inc. shows a company aggressively balancing its massive physical footprint-about 10,250 locations-with a digital-first push. They are using a dual-brand play, from premium Avis to urban Zipcar, while targeting 72% utilization and banking on partnerships like Waymo for the future. Honestly, seeing their projected $11.98 billion revenue for 2025 alongside a $950 million liquidity cushion tells a compelling story about managing high debt against fleet depreciation. Dive in below to see the nine blocks that define their strategy.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Key Partnerships

You're looking at the structure of Avis Budget Group, Inc. (CAR) partnerships as of late 2025, which clearly shows a pivot toward future mobility alongside core travel services. The numbers from the third quarter of 2025 tell a story of a company generating significant revenue while investing heavily in new areas.

For the third quarter ending September 30, 2025, Avis Budget Group reported revenues of $3.5 billion, with Net Income reaching $360 million and Adjusted EBITDA at $559 million. The trailing twelve-month revenue as of September 30, 2025, stood at $11.4B.

Waymo for autonomous vehicle fleet operations in Dallas.

Avis Budget Group announced a multi-year strategic partnership with Waymo on July 29, 2025, positioning Avis Budget Group as the fleet operations partner for Waymo's fully autonomous ride-hailing service launch in Dallas. This involves end-to-end services including infrastructure, vehicle readiness, maintenance, and depot operations for the Waymo fleet. The public launch for this service in Dallas is slated for 2026.

Global airline and hospitality loyalty programs (e.g., Qantas).

Avis Budget Group maintains worldwide partnerships allowing customers to earn exclusive rewards and discounts. This extends to hotel partners where driving with Avis or Budget earns points and discounts alongside stays.

Automotive OEMs for fleet acquisition and maintenance support.

Avis Budget Group disposes of its risk vehicles in accordance with repurchase or guaranteed depreciation programs with major vehicle manufacturers. The balance sheet reflects the scale of these arrangements; as of June 30, 2025, the Vehicles, net figure was $20,510 million, supported by Debt under vehicle programs of $19,914 million. Executives stated they were on track to start 2025 with 'substantially fewer cars' than they started 2024 with, indicating active fleet discipline. In 2024, the average quarterly rental fleet size ranged from a low of approximately 667,000 vehicles to a high of approximately 736,000 vehicles.

Retailers and financial institutions for customer rewards and discounts.

The Avis Preferred loyalty program is structured to reward spending through points accumulation. To achieve Avis Preferred Plus status, members must complete 12 rentals or spend $5,000 on base rentals plus optional products within a calendar year. Status benefits include earning 25 to 50 percent more points for every dollar spent.

Mass transit systems for integrated mobility solutions.

Avis Budget Group views itself as an ideal partner for public, private, or government organizations to provide transportation solutions as the landscape changes. The company is actively looking for new partnership opportunities as it evolves its business toward the future of transportation.

Here's a quick look at some key operational and financial metrics tied to the business structure as of late 2025:

The loyalty program structure incentivizes higher spend and frequency:

• Earn 25 to 50 percent more points with Avis Preferred Plus status.
• Avis Preferred Plus requires 12 rentals or $5,000 spend.
• The company operates approximately 10,250 rental locations globally.
• The Waymo partnership focuses on the Dallas market initially, with plans for expansion.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Key Activities

You're looking at the core engine room of Avis Budget Group, Inc. (CAR) as of late 2025. These aren't just things they do; these are the actions that directly translate into their financial performance, especially given the focus on fleet discipline and premium offerings.

Strategic fleet management and rotation for cost efficiency.

This activity is paramount, especially after the major strategic shift. Avis Budget Group, Inc. executed a bold fleet rotation strategy, which included taking a $2.5 billion non-cash asset impairment charge early in 2025 to replace higher-cost 2023 and 2024 model-year vehicles with 2025 models at lower costs. The goal was clear: normalize fleet costs. Management projected fleet costs per unit per month to decline significantly, moving from $400 in Q1 2025 down to approximately $300 by the end of 2025. This discipline showed in the Q3 2025 results, where Adjusted EBITDA in both the Americas and International segments was positively influenced by lower fleet costs. To give you a sense of the scale of their operations, as of 2025, the company has 23,996 employees supporting this global effort. Also, the company is managing its balance sheet actively; for instance, in Q3 2024, they repurchased approximately 526,000 shares for nearly $43 million.

The financial underpinning of this activity is visible in their liquidity position, which stood at nearly $1.0 billion at the end of Q3 2025, supported by an additional $1.9 billion of fleet funding capacity.

Digital transformation using AI for pricing and customer experience.

Avis Budget Group, Inc. is actively using technology to sharpen its edge. Investments in technology and machine learning are key to enhancing revenue generation, productivity, and vehicle utilization. They are rolling out digital fleet tools designed to improve vehicle movements, ensure timely repairs, and provide better disposition visibility. Historically, the company was working toward connecting its entire global fleet; at one point, they reported having more than 150,000 connected cars, which was about one-quarter of their fleet, leveraging real-time data like mileage and GPS coordinates to balance vehicle usage across locations. This data pipeline is central to making better fleet management decisions.

Managing a global network of rental and car-sharing locations.

The physical footprint remains a core asset. As of 2025, Avis Budget Group, Inc. operates approximately 10,995 rental locations across about 180 countries worldwide. The majority of the company's revenue is generated in the Americas segment. The network includes not only the core Avis and Budget brands but also the Zipcar car-sharing network. Here's a quick look at the scale of the operation based on recent financial reporting periods:

Developing and scaling new premium service offerings like Avis First.

To capture higher-margin business, Avis Budget Group, Inc. is actively scaling premium offerings. The launch of Avis First, a premium product, occurred on July 21st in 2025. This service is designed to set a new standard for first-class rental, featuring frictionless curbside pick-up and drop-off, a dedicated concierge, and premium current-model-year vehicles. Management has a clear scaling target, unveiling plans for the rollout of Avis First in over 50 markets by the end of 2025. This focus on higher-margin business was a stated priority, leading the company to elect to forego lower-margin business, especially from brand-agnostic customers, during times of high fleet costs.

Maintaining high vehicle utilization, targeting 72% or higher.

Driving utilization above the 72% threshold is a constant operational imperative. The company saw utilization improve in Q3 2024 to 72.1% overall. By Q3 2025, the Americas utilization reached nearly 72%, while the International segment posted 73.7% utilization. This focus on keeping the fleet inside of demand directly impacts profitability, as seen by the increase in vehicle utilization driving higher Adjusted EBITDA in the Americas in Q2 2025 compared to the prior year. The operational highlights for Q3 2025 show rental days were up 1% compared to Q3 2024, even as revenue per day was down 1% (excluding exchange rate effects), underscoring the importance of volume efficiency.

Key utilization and operational metrics for recent periods include:

• Americas Q3 2025 Utilization: Nearly 72%.
• International Q3 2025 Utilization: 73.7%.
• Q3 2025 Rental Days: Up 1% year-over-year.
• Projected Fleet Cost Reduction: To $300 per unit/month by Q4 2025.

Finance: draft 13-week cash view by Friday.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Key Resources

You're looking at the core assets Avis Budget Group, Inc. (CAR) relies on to run its global mobility business as of late 2025. These aren't just vehicles and buildings; they are the infrastructure that supports their revenue generation.

The global vehicle fleet is actively managed, a necessity when fleet costs per month were reported at $300 in Q2 2025, down 13% year-over-year from $346 in Q2 2024. This management is key, as the average rental fleet size for the second quarter of 2025 stood at 517,363 vehicles. Vehicle utilization was a respectable 70.7% for that same quarter.

The company maintains an extensive global network. As of the Q2 2025 reporting period, Avis Budget Group, Inc. stated it has approximately 10,250 rental locations across roughly 180 countries around the world. This physical footprint is a massive barrier to entry for new competitors.

Financially, you want to see a solid cushion. Avis Budget Group, Inc. reported a strong liquidity position of nearly $950 million as of the end of Q2 2025, with total liquidity specifically noted at $944 million. Plus, they had an additional $1.7 billion of fleet funding capacity available to support operations.

The dual-brand portfolio, along with other specialized brands, provides market segmentation. Here's a quick look at the key components and scale as of the latest reports:

The investment in proprietary telematics and connected car data intelligence is a critical, though less tangible, resource. This technology helps them run leaner. Here's what that connectivity enables:

• Real-time inventory counts for dynamic fleet positioning.
• Mileage management and automated maintenance notifications.
• Sophisticated tracking of idle vehicles to reduce holding costs.
• Automated processing for cars ready to rent, speeding up turnover.
• Data feeds that can inform smart city planning with anonymized road condition data.

Honestly, the ability to use data to drive down per-unit fleet costs-which were $300 per month in Q2 2025-is what separates the leaders now. Finance: draft 13-week cash view by Friday.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Value Propositions

You're looking at how Avis Budget Group, Inc. (CAR) delivers value across its different customer needs, which is key to understanding its financial performance, like the $3.5 billion in revenue reported for the third quarter of 2025. The core of this is a deliberate segmentation of the market.

Dual-brand strategy offering both premium (Avis) and value (Budget) options.

Avis Budget Group, Inc. operates through its Avis and Budget brands, which together provide a wide reach with approximately 10,250 rental locations across approximately 180 countries around the world. This structure lets the company serve different price points and customer expectations simultaneously. The company is definitely focused on differentiating these lanes, unlike the industry norm where differentiation was minimal.

On-demand, flexible mobility via car rental and Zipcar car-sharing.

The offering extends beyond traditional rentals to include Zipcar, which is recognized as the world's leading car sharing network. This provides a true on-demand mobility option for shorter, more purposeful trips. For context on the user base, projections indicated the number of global car-sharing users would reach 59.31 million in 2025. In 2022, Zipcar held the largest market share in the global car-sharing market at 8%.

Also, 78% of members report that Zipcar access is essential for their overall transportation satisfaction. That's a strong indicator of value capture in the urban mobility space.

Frictionless, digital-first rental experience via mobile app and self-service.

Avis Budget Group, Inc. is pushing for a more seamless customer journey, which is critical for maintaining competitive pricing power, especially when the Americas Revenue Per Day (RPD) declined by 3 percent to $73.19 in Q3 2025. The digital focus supports operational efficiency, which is showing up in the numbers; for instance, per-unit fleet costs dropped to $300 per month in Q2 2025 from $346 in the prior year period.

Premium service with Avis First, projected to uplift revenue per day by 14%.

The launch of Avis First, a premium product, addresses the willingness of travelers to pay more for certainty and experience. While I don't have the exact 14% uplift projection in the latest filings, we do see concrete performance data. By the third quarter of 2025, the Rate Per Day (RPD) for Avis First was reported at over $100. This premium offering expanded rapidly from a dozen locations at launch to 36 locations by the Q3 2025 earnings call, showing clear customer adoption of the premium tier.

Fleet management expertise for emerging autonomous vehicle partners.

A key evolution is leveraging core fleet management skills for the autonomous sector. Avis Budget Group, Inc. announced a multi-year strategic partnership with Waymo to serve as its fleet operations partner in Dallas. This involves providing end-to-end services including infrastructure, vehicle readiness, maintenance, and depot operations. The public launch for this autonomous ride-hailing service is slated for 2026, positioning Avis Budget Group, Inc. as a critical enabler in the next-generation mobility ecosystem.

Finance: draft 13-week cash view by Friday.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Customer Relationships

You're looking at how Avis Budget Group, Inc. (CAR) keeps its customers coming back, which is critical when the rental car industry is so competitive. The relationship strategy clearly segments customers, moving from broad loyalty tiers to a highly bespoke premium offering.

Dedicated loyalty programs (Avis Preferred, Budget Fastbreak)

The foundation of repeat business rests on the Avis Preferred and Budget Fastbreak programs. These aim to capture the high-frequency traveler by offering expedited service and preference tracking, which is key in a market where general industry statistics show that 79% of customers stay loyal when they can access exclusive benefits. For Avis Budget Group, Inc., these programs are designed to provide a sense of belonging and exclusivity, which generally drives higher engagement; industry-wide, 72% of product users consider loyalty programs a part of their business relationships. While specific membership numbers for late 2025 aren't public, the focus remains on accelerating earnings through these tiers, as top-performing programs can boost revenue from redeeming customers by 15% to 25% annually.

• Avis Preferred: Members earn a minimum of 100 points per rental and can go straight to their car at most locations.
• Budget Fastbreak: Offers special rates and complimentary Fastbreak® membership for small and medium-sized business enrollments.

Automated, self-service interactions via digital channels

Avis Budget Group, Inc. continues to invest heavily in digital channels to make transactions frictionless. The goal is to minimize the time customers spend on traditionally lengthy procedures, like vehicle pick-up and return, by leveraging AI and automation. This focus on digital convenience has historically been a driver of loyalty, as seen when the company aimed to have a fully connected fleet of 50,000 vehicles back in 2018 to enable mobile app interaction. Today, the focus is on using data-driven insights to anticipate needs, from vehicle preference to rental duration. The company operates about 10,250 rental locations globally, all underpinned by these digital platforms.

Corporate business programs for high-volume commercial accounts

The commercial segment remains a focus, though recent trends show a shift. In the second quarter of 2025, Avis Budget Group, Inc. noted a 'pullback in commercial' rental days, which was offset by robust leisure volume showing 'mid single-digit growth' in the U.S. rental car business. This suggests a strategic pivot or a reaction to macro factors like tariff uncertainty affecting business travel. To support this segment, the company offers dedicated programs:

• Avis Small Business Program: Provides exclusive service advantages and complimentary Avis Preferred membership.
• Budget Business Program: Offers special rates and dedicated account support, including free Fastbreak® membership.
• Meetings & Group Services: An Avis meeting specialist designs exclusive rate packages for needs requiring five cars or more.

Personalized service for the new Avis First premium segment

The introduction of Avis First in July 2025 marks a direct move into a premium, personalized relationship tier. This service is designed to offer a concierge-style experience, skipping the counter and shuttle. The company planned to expand this offering from its initial launch in over a dozen locations to over 50 markets by the end of 2025. This high-touch service commands a premium price; for example, a specific Mercedes-Benz GLS 450 SUV rental was quoted at $547 for four days, compared to $435 for a standard SUV for the same period. However, the CEO suggested the upgrade cost could be as little as $10 a day, aiming for immediate margin accretion. The Q3 2025 results showed sales of $3.5 billion, indicating the environment in which this premium push is taking place.

Here's a quick look at how the service tiers compare based on available data points:

The company's overall Q3 2025 Adjusted EBITDA was $559 million, showing that operational efficiency across all customer touchpoints, including these relationships, is driving profitability.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Channels

You're looking at how Avis Budget Group, Inc. (CAR) gets its vehicles into customers' hands across the globe. It's a multi-pronged approach, balancing high-volume direct sales with the reach of partners.

Direct online booking via Avis and Budget websites and mobile apps is a primary focus, supporting the company's push for digital efficiency. While specific revenue attribution to the direct digital channel isn't broken out, the overall performance of the Americas segment, which includes direct operations, was strong in Q3 2025, posting revenues of $2.6 billion. The company is definitely leaning into its digital platforms to drive direct bookings and manage its fleet.

The physical footprint remains massive, covering both airport and off-airport rental locations globally. As of 2025, Avis Budget Group, Inc. operates approximately 10,995 locations worldwide. To be fair, other recent reports cite a network of approximately 10,250 rental locations in about 180 countries. The operational split shows that Avis Budget Group, Inc. runs most of its North America, Europe, and Australasia offices directly, while relying on licensees elsewhere. Here's how the latest quarterly revenue broke down geographically, which gives you a sense of where the physical channel activity is concentrated:

Third-party Online Travel Agencies (OTAs) and travel agents form a crucial part of the distribution mix, especially for leisure travel, though this channel often comes with higher commission costs. The International segment, which operates primarily through licensees, contributed $898 million in revenue for Q3 2025. These licensee relationships often incorporate third-party booking platforms, so you can see the global reach is heavily reliant on partners.

The dedicated Zipcar car-sharing network targets urban mobility needs, offering rentals by the minute, hour, or day. This is a distinct channel from traditional rentals. The global car-sharing market itself was valued at USD 9.6 billion in 2025. Zipcar held the largest market share at 8% in the global car-sharing market in 2022. Projections suggest the worldwide car-sharing user base will reach 59.31 million in 2025. The channel's value proposition is clear from member behavior:

• 83% of Zipcar members don't own a car.
• 78% of members say Zipcar access is essential for their overall transportation satisfaction.
• It's estimated that 10% of the population will adopt car sharing as their primary mode of transportation by 2025.

Finally, the franchise network provides brand licensing in various markets, extending the footprint without the capital outlay of direct ownership. Avis Budget Group, Inc. has over 500+ Franchise Units. For an entrepreneur looking to enter this channel, the investment details are quite specific. If onboarding takes 14+ days, churn risk rises. The investment range for an Avis franchise is listed between $605,500 and $1,568,400, with a set Franchise Fee of $9,500. This structure lets Avis Budget Group, Inc. scale its presence, especially in regions where direct operation is less efficient.

Finance: draft 13-week cash view by Friday.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Customer Segments

The customer base for Avis Budget Group, Inc. is segmented across distinct mobility needs, reflected in the performance of its core brands.

Premium business and leisure travelers (Avis brand focus)

• The 'Avis First' premium service achieved an average customer rating of 4.9 stars in Q3 2025.
• International operations, which often cater to higher-margin leisure and inbound business, saw Revenue Per Day (RPD) grow by 5% (excluding exchange rate effects) in Q3 2025.

Value-conscious leisure and budget travelers (Budget brand focus)

• The Americas region, which includes significant Budget brand volume, experienced an RPD decrease of 3% in Q3 2025, attributed to softer leisure pricing.
• Total company rental days increased by 1% in Q3 2025, indicating volume traction across segments.

The geographic segment financial performance provides a proxy for the combined brand focus:

Urban residents and students needing hourly car-sharing (Zipcar)

• The company is streamlining operations, including the decision to close loss-making Zipcar UK operations effective from 2026.
• In 2024, Zipcar UK revenue was £47 million, with losses after tax widening sharply to £11.6m.
• In Britain, Zipcar amassed around 650,000 members as of 2024.
• All other Zipcar markets remain unaffected by the UK shutdown.

Large corporations and government entities (fleet and business programs)

• Challenges remain in the commercial and government segments, as noted following the Q3 2025 earnings release.
• The Americas segment, which accounts for approximately 77% of total revenue, reported $2,332 million in Q2 2025 revenue.
• Management elected to forego lower-margin business, especially from brand-agnostic customers, to focus on higher-margin business.

Technology companies requiring fleet operations support (e.g., Waymo)

• Avis Budget Group announced a strategic partnership with Waymo to introduce autonomous ride-hailing services in Dallas, Texas.
• The company has a global presence with rental locations in approximately 180 countries.

Overall company financial context for late 2025 (Q3 results):

• Total Revenues: $3.5 billion.
• Net Income: $360 million.
• Consolidated Adjusted EBITDA: $559 million.
• The company projects adjusted EBITDA of no less than $1 billion for the full year 2025.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Cost Structure

High variable cost of fleet depreciation and maintenance.

The fleet rotation strategy resulted in a one-time non-cash impairment of $2.3 billion and other non-cash related charges of $180 million.

Significant interest expense on total debt of around $23.1 billion.

Total debt on the balance sheet as of September 2025 was $28.59 Billion USD.

• Vehicle interest costs as a percentage of revenues in 2024: 8%.
• Interest expense related to corporate debt, net (excluding early extinguishment of debt) for the six months ended June 30, 2025: ($207) million.

Operating expenses like labor, facility rent, and insurance.

Operating expenses as a percentage of revenues for the full year 2024: 51%.

Fleet acquisition costs, despite efforts to reduce per-unit cost to $300 by Q4 2025.

The per-unit fleet cost was $300 per month in Q2 2025.

Technology investment for digital platforms and telematics.

Strategic announcements included the launch of Avis First and a multi-year partnership with Waymo to launch fully autonomous ride-hailing operations in Dallas, Texas.

Avis Budget Group, Inc. (CAR) - Canvas Business Model: Revenue Streams

You're looking at how Avis Budget Group, Inc. actually brings in the money, which is critical for understanding its valuation, especially given the recent focus on operational efficiency over pure top-line growth. Honestly, the core of the business remains the same, but the nuances in pricing and ancillary services are where the real margin story is playing out in 2025.

Primary revenue from vehicle rental fees is still the engine, driven by duration, mileage, and the class of vehicle you choose. This is the base rate you see when you book an Avis or Budget vehicle. For instance, looking at the third quarter of 2025, the Americas segment, which is the bulk of the business, brought in $2.6 billion in revenue. This revenue is highly sensitive to utilization; in the second quarter of 2025, vehicle utilization hit 70.7%.

Then you have the ancillary revenues, which management is clearly pushing hard to maximize. This includes things like insurance products, fuel service options, and any optional equipment you add on. While the base rental rate per day saw a slight dip-down 1% in Q2 2025 compared to the prior year period-the focus on cost control, like per-unit fleet costs falling to $300 per month in Q2 2025, shows how they manage the cost side of the rental equation. Plus, they launched Avis First on July 21st, 2025, a premium offering designed to capture higher-value transactions with concierge service and premium vehicles.

The car-sharing subscription and usage fees come primarily from the Zipcar brand, which operates alongside Avis and Budget. While specific revenue figures for Zipcar alone aren't broken out in the latest reports, its inclusion diversifies the customer base beyond traditional airport and off-airport rentals.

Franchise and licensing fees from global partners represent a stable, lower-capital component of the revenue mix. Avis Budget Group operates in approximately 180 countries worldwide, utilizing its brands through licensing agreements. Beyond the main brands, they also operate Payless, Apex, Maggiore, and others, which contribute through these partner arrangements.

Here's a quick look at the top-line picture for the year, based on analyst consensus and recent reporting:

You can see the geographic split clearly in the quarterly data, but the full-year picture relies on that overall projection. The company is definitely leaning into premium segmentation and operational leverage to drive profitability, even if the overall revenue growth forecast is modest:

• Revenue is forecast to grow 1.9% per annum on average during the next 3 years.
• The Americas segment accounted for approximately 77% of total revenue in Q2 2025 ($2,332 million).
• Avis Budget Group maintains a portfolio of brands including Avis, Budget, and Zipcar for varied market segments.
• The company is confident in generating no less than $1 billion of Adjusted EBITDA in 2025, showing a focus on the bottom line over just top-line revenue.

Finance: draft 13-week cash view by Friday.