Cities across developing countries are changing fast. Populations are swelling, mobility is surging—and not everyone’s in the market to buy a car. That’s where rentals step in, offering the kind of short-term flexibility more people now need. From everyday city hatchbacks to premium experiences like sports car rental in Dubai, the model now serves a wide range of customers. For car rental brands, this moment feels ripe for expansion.
Franchising, especially, has its draw. It offers a faster way in, connecting global names with local entrepreneurs who know the terrain. But let’s not pretend it’s simple. Legal tangles, cultural misalignment, and day-to-day operational snags can throw serious wrenches in the works.
So, what’s fueling the excitement—and what could throw you off course?
A Market Picking Up Speed
Momentum is building across South Asia, Africa, and Latin America. Car rentals are booming as cities grow and middle-class lifestyles evolve. With smartphones practically everywhere, hopping into a rental is easier than ever.
Tourism is coming back. Business travel is ticking upward. And in places where buses break down and trains are unreliable, rentals aren’t just convenient—they’re often essential.
The opportunity is clear. For adaptable operators, the road looks open.
Why Franchising Works (When It Works)
Trying to build from the ground up in an unfamiliar country can be slow, expensive, and risky. Franchising flips the equation. Instead of tackling everything solo, companies can partner with locals who understand the lay of the land.
Franchisors benefit from quicker growth. Franchisees tap into systems and a known brand. It’s easy to see why players like Hertz and Europcar are diving in. Smaller regional outfits and eager local founders are following their lead.
Still, none of it works without the right foundation. Trust, alignment, and a real strategy make or break the deal.
What You’re Up Against
Bringing your brand to a new market isn’t a sticker-and-go affair. There’s plenty of prep before the first rental rolls out.
Start with the paperwork. Every country’s got its own mix of red tape—licensing, insurance rules, import duties. Just when you think you’ve nailed it, regulations might shift.
Then comes partner selection. This isn’t just about shaking hands and signing contracts. You need someone whose goals match yours, and who can deliver.
Infrastructure throws its own curveballs. Bad roads, fuel shortages, and unreliable mechanics all pile on costs. And let’s not forget financing—many partners will need serious help getting off the ground.
This isn’t a plug-and-play situation. You’ll need a custom plan that fits the local puzzle.
Adapt or Stall
A cut-and-paste strategy won’t cut it. What flies in one country might flop in another.
Take pricing. In some areas, daily rates are out of reach for many. Hourly billing or ride-by-the-minute options might win more users. And vehicle choice matters too — some customers want small, practical cars, while others are looking for premium thrills, even Camaro rental in Dubai. If your platform only takes credit cards, forget about reaching the cash-preferred crowd or those using mobile wallets.
And then there’s the cultural layer. People want to feel like they’re dealing with someone who gets them. That could mean smaller cars, familiar payment systems, or service in the local language.
Even your tech should meet people where they are. Can it run smoothly on slow connections? Can it handle offline bookings? If not, expect to feel like a stranger, no matter how polished your platform is.
Watch for Roadblocks
Yes, the market’s promising. But there are potholes.
One policy change, and suddenly your fleet doesn’t meet emissions standards. Supply chain delays might sideline a vehicle for weeks just waiting on parts. Informal competition—peer-to-peer rentals and unlicensed operators—can undercut you fast.
Security adds another layer. Theft, fraud, damage—they’re more common in places with patchy enforcement. And when franchisees are scattered, keeping everyone aligned on service quality is its own challenge. Training and oversight? Absolutely non-negotiable.
Real Lessons from the Field
One mid-sized company pulled it off in Southeast Asia by going slow. They listened. Built local ties. Hired bilingual support teams. Nothing flashy—just solid groundwork. They’re now growing at a healthy pace.
Contrast that with a major brand that rushed into Africa. Wrong partner, poor service, and unhappy customers. The result? Bad press, brand damage, and a full withdrawal within a year. That door might stay closed for a long time.
Preparation made the difference.
What It Really Takes
There’s no hack here. Winning in these markets means doing the work.
Know the laws, study the risks, understand the people. Be thoughtful about your partners. Build strong onboarding, support, and feedback loops.
And don’t set it and forget it. Be flexible. Keep learning. Stay in it for the long haul.
Watch where tech is heading. EVs, AI fleet management, mobile lending—they’re already reshaping the game. The brands willing to evolve will be the ones still standing.
In Closing
Emerging markets offer incredible promise for car rental franchising. But there’s no guaranteed playbook.
Get it wrong, and you risk burning capital and credibility. Get it right, and you could build something meaningful and lasting.
Because in this part of the world, the roads may be rough—but the potential? That’s the smoothest ride of all.
