UK Car Rental Firm Enters Ethiopia, Targeting International Visitors

One of United Kingdom’s biggest car rental companies has partnered with an Ethiopian company to launch an electric, hybrid, and low-CO2-emission vehicle rental business. Green Motion International which operates in nearly 80 countries worldwide signed a franchise agreement with Excellence Car Rental Services Ethiopia this week, eyeing foreign visitors. The signing ceremony held at the Skylight Hotel was attended by senior management of both companies who indicated plans to begin operations immediately.

Richard Lowden, CEO of Green Motion, pointed out how Addis Ababa emerged as a tourist hotspot with significant potential for growth in the company’s expansion efforts across developing economies. He stated the importance of finding local partners capable of embracing their technology to spark an evolution of operations in the sector.

“We hope to see the brand grow throughout Ethiopia,” Richard told Shega.

The agreement between the two parties was two years in the making with the CEOs initially meeting in Thailand and a few more times in Britain. Green Motion currently operates with nine partners in Africa with the first franchise operations being set up in Morocco.

The Company fully provides the technology stack including an XML-based software that is integrated into major booking platforms like Expedia and Bookings.com. The local partner Excellence Car Rental will supply the vehicles.

Through the franchise agreement, visitors can book hotels, make reservations and find rental cars in a single portal. 

Richard indicated that they will not dictate prices with the franchisee able to set them according to market conditions and operating costs. While Green Motion’s global fleet of cars is around 6,000, mostly low Co2 emission vehicles, only around 10% are fully electric. The CEO says they will calibrate renting out EVs with the local charging infrastructure to ensure smooth trips for customers.

“If we believe that the car (an EV) is not fit, we will put them (the customers) in a traditional car,” Richard said.” While the infrastructure catches up.”

There are ongoing discussions with Ethiopian airport authorities to find a way of establishing a kiosk within the terminal, according to the CEO. He recalled how most international airports feature several car rental desks while no such service is offered in Ethiopia. 

This move will align its operations with the Company’s global practices, allowing users to pick up a vehicle upon arrival at the airport and return it to the same location at the end of their trip. 

The firm’s global operations have received mixed reactions. While it has expanded its footprint in many countries, it faced backlash five years ago, with customers criticizing the company over claims that they were billed excessively for damages.

Bizuayehu Tadesse, General Manager of Excellence Car Rental and CEO of Green Motion Ethiopia, said the partnership highlights Ethiopia’s recent opening to foreign investors. He said over 100 cars will be available for the rental service. 

“The partnership will bring in foreign currency and enable knowledge transfer between the two countries,” Bizuayehu said.

Ethiopia’s government has increasingly signaled a commitment to transition the country’s transport infrastructure to an eco-friendly electric-first system. This has entailed increased tariffs on internal combustion engine vehicles and near-zero tariffs for EVs. However, concerns linger around the availability of enough charging stations and a fully developed national grid.