Localiza&Co Company Profile

Background

Localiza&Co, established in 1973 in Belo Horizonte, Brazil, has evolved into the largest mobility network in South America. With a fleet exceeding 669,000 vehicles and a presence in seven countries, the company operates over 948 physical locations and employs approximately 22,000 individuals as of December 2024. Localiza&Co's mission is to simplify and enhance mobility solutions for individuals and businesses, positioning itself as a leader in the car rental and fleet management industry.

Key Strategic Focus

Localiza&Co's strategic focus encompasses several core areas:

Car Rental Division: Offers short-term vehicle rentals through agencies located at airports and urban centers, catering to both individual and corporate clients.

Fleet Rental Division: Provides long-term vehicle leasing solutions, offering new cars for periods of 24, 36, or 48 months, aligning with the growing trend of vehicle subscription services.

Seminovos: Manages the sale of decommissioned vehicles directly to consumers, optimizing asset recovery and reducing fleet renewal costs.

Zarp Localiza: A dedicated service for app-based drivers, offering tailored rental solutions to meet the specific needs of this segment.

The company's integrated platform is designed to serve a diverse clientele, including individuals, businesses, and app drivers, ensuring a comprehensive approach to mobility solutions.

Financials and Funding

Localiza&Co has demonstrated robust financial performance, with significant revenue growth over the years. In 2018, the company reported revenues of approximately US$2.0 billion and a net income of US$170.0 million. The company's strong financial standing is further evidenced by favorable ratings from leading agencies such as Moody’s, Standard & Poor’s, and Fitch Ratings, enabling it to secure funding on advantageous terms.

Pipeline Development

Localiza&Co continually expands its service offerings to meet evolving market demands:

Localiza Meoo: Launched in 2020, this subscription-based service provides individuals and small to medium-sized enterprises with long-term vehicle access, reflecting a shift towards usage over ownership.

Heavy Vehicle Rentals: In 2022, the company ventured into heavy vehicle rentals, leveraging its expertise to tap into new growth avenues.

International Expansion: Operations commenced in Mexico in 2023, with the opening of 10 branches in major airports, marking a significant step in the company's international growth strategy.

Technological Platform and Innovation

Localiza&Co places a strong emphasis on technological innovation to enhance customer experience and operational efficiency:

Localiza Labs: Established in 2020, this technology and data science laboratory employs over 1,300 professionals dedicated to developing solutions that address the needs of customers, employees, and operations.

Digital Transformation: Since 2014, the company has invested heavily in digitalization, transforming its operations and interactions with stakeholders, thereby maintaining a competitive edge in the market.

Leadership Team

Localiza&Co's leadership comprises experienced professionals driving the company's strategic vision:

Bruno Lasansky: Serving as CEO since 2021, Lasansky has been instrumental in steering the company through significant growth phases, including the integration with Locamerica and the expansion into new markets.

Eugênio Mattar: A founder of the company, Mattar transitioned from CEO to Chairman of the Board in 2021, continuing to provide strategic guidance.

Leadership Changes

In 2021, Localiza&Co underwent a significant leadership transition:

CEO Transition: Bruno Lasansky succeeded Eugênio Mattar as CEO, marking the first time a non-founder assumed this role, reflecting the company's commitment to evolving leadership to support its growth trajectory.

Competitor Profile

Market Insights and Dynamics

The car rental and mobility solutions market in South America is characterized by significant growth potential, driven by increasing urbanization and changing consumer preferences towards vehicle usage over ownership. Localiza&Co's extensive network and diversified service offerings position it favorably within this dynamic landscape.

Competitor Analysis

Key competitors in the region include:

Movida: A prominent player in the Brazilian car rental market, offering a range of services similar to Localiza&Co.

Unidas: Prior to its merger with Localiza&Co, Unidas was a significant competitor, and its integration has further solidified Localiza&Co's market leadership.

International Competitors: Companies such as Hertz, Avis Budget Group, and Europcar also operate in the region, providing alternative mobility solutions.

Strategic Collaborations and Partnerships

Localiza&Co has engaged in strategic initiatives to strengthen its market position:

Merger with Locamerica: Completed in 2022, this merger enhanced the company's scale and competitive positioning, enabling it to capture profitable growth opportunities.

Acquisition of Mobi7: In 2020, the company acquired Mobi7, a fleet monitoring and telemetry firm, expanding its technological capabilities and service offerings.