Electric Vehicles in Rural and Underserved Markets: Tapping into New Rental Opportunities

Lloyd Andrukow

November 4, 2024

While electric vehicles (EVs) have gained traction in urban settings, rural and underserved markets remain largely untapped. This presents a valuable opportunity for rental companies to expand their EV offerings to new customer bases in less populated areas. For fleet managers, understanding the potential of rural EV adoption can help unlock significant growth.

Why EVs in Rural Markets Matter

In rural areas, reliance on personal vehicles is higher than in cities due to limited public transportation options. However, the perception persists that EVs are best suited for urban environments due to concerns about charging infrastructure and range. This is changing as charging networks expand and EV technology improves, making rural areas increasingly viable for EV adoption.

Fictional Situation: Expanding EVs in Mill Valley

Let’s take the example of an imaginary town, Mill Valley. A small rental company, GreenWheels Rentals, began offering EVs alongside traditional gas-powered cars. Initially, locals were hesitant due to concerns about charging access and the suitability of EVs for longer rural drives. However, GreenWheels invested in building a small but efficient charging network with local businesses and farms. Within a year, EV rentals saw a 50% increase, and word spread that EVs were just as reliable for rural driving.

Did you know?

Did you know that the average rural commute is over 25 miles daily? EVs with ranges of 200+ miles can easily accommodate this with fewer refueling stops.
Did you know that several rural states in the U.S. are offering financial incentives for EV charging infrastructure, making it easier for businesses to set up charging stations?
Did you know that rural residents spend 15-20% more on transportation annually compared to urban dwellers? This creates an opportunity for EV rentals, which could significantly lower their fuel costs.

The Opportunity for Fleets

Fleet managers can take advantage of these new opportunities by deploying EVs to underserved areas. As charging infrastructure expands and consumers become more comfortable with the technology, rental companies can benefit from being early adopters in these regions. With lower fuel and maintenance costs, EVs could become more attractive to cost-conscious rural consumers, especially as they become familiar with the benefits of electric mobility.By positioning EVs in rural markets as reliable and economical options, companies can grow their customer base while contributing to sustainable transportation goals.

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