Case Study

3 pages
May 2000
Reference: IMD-3-0875

In April 2000, Stelios Haji-Ioannou launched easyRentacar, his latest Internet-based business. EasyRentacar was just one of several companies operating under the UK-based parent company, easyGroup, which also managed easyJet airlines and easyEverything, a chain of Internet shops. Stelios, chairman and owner of easyGroup, was a charismatic and wealthy entrepreneur known for his down to earth, “no frills” style that had come to exemplify the easy brand. After signing a deal with DaimlerChrysler to lease 5,000 of its Mercedes A-Class vehicles, Stelios entered the rental car business with the goal of offering rates as low as #9 per day. He decided to launch easyRentacar because he believed that established players in the rental car business, such as Budget, Avis, and Hertz, had formed a cartel that fed off the corporate client. He aimed to provide a low-cost alternative for consumers who paid out of their own pockets. The easyRentacar case illustrates how Stelios has once again entered a new business with the goal of redefining the existing industry business model to add shattering value for the customer. Instructors should note that easyRentacar is the third case of a case series that includes easyJet 2000 (GM 873) and easyEverything, the Internet shop (GM 874).

Industry Analysis, Internet, Car Rental
Published Sources
© 2000
Available Languages
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