Zeda, the company behind Avis and Budget car rentals, reported a slight drop in revenue for the first half of its financial year, as corporate clients postponed fleet upgrades due to economic pressures. Revenue fell by 1.6% to R5.2 billion, with SMEs in mining and transport also cutting back on spending. However, the leasing division performed well, growing revenue by 5.6% to R1.4 billion, supported by corporate and heavy commercial fleet demand in Africa. Despite challenges, Zeda maintained a strong order book in heavy commercial vehicles, showing resilience in this segment.
The car rental business saw a 4% decline in revenue to R3.8 billion, mainly due to weaker used car sales. Excluding vehicle sales, rental income stayed steady, with rental days increasing by 2.5%. This growth was driven by a 49% surge in short-term subscriptions, thanks to improved digital systems making rentals more convenient. Zeda operates over 20,000 vehicles across Southern Africa, serving private and public sectors, insurance replacements, tourism, and leisure markets. The company offers various services, including standard rentals, chauffeur drives, and luxury vehicle hires.
Despite the tough market, Zeda remains optimistic about the second half of the year, expecting stronger car sales, new contracts, and continued growth in subscriptions. CEO Ramasela Ganda highlighted the company’s focus on smart fleet management—buying, using, and selling vehicles efficiently. Key growth areas include subscriptions, corporate leasing, African expansion, and used car sales. Ganda emphasised that these strategies will help Zeda navigate economic challenges while maintaining long-term stability.