Business Platform

The Company is the largest car rental network in South America in number of branches, with 589 car rental locations across seven countries in South America, of which 391 are operated by Localiza and 198 by franchisees.

The Company rents cars through Car Rental Division in branches located in airports and off airport locations. Rentals are carried out by companies, individuals on business or leisure trips, as well by for insurance companies and automakers which offer replacement cars to their customers in the case of accidents or mechanical breakdowns during the term of the insurance policy or warranty, respectively.

The Fleet Rental Division outsources fleets to companies based on long-term contracts (usually 24 or 36 months). Its fleet is customized according to the needs and requests of its customers, thus being more diversified in terms of models, colors and brands than the fleet of the Car Rental Division.

Due to the constant need for fleet renewal, Localiza disposes the cars used in the Car Rental Division after 12 months and disposes the cars used in the Fleet Rental Division at the end of the contracts. Most of the cars are sold directly to final consumers at stores intended for such sales called Seminovos. As a result, the Company maximizes the recovery value of such assets, reducing depreciation of the cars and the net investment in fleet renewal, since selling expenses incurred at its own car dealer chain is lower than the discounts required by resellers.

The Franchising Division is responsible for managing and granting franchises, in smaller and geographically defined markets, as well as for transferring the technical knowledge required to make the business operational, and upon assignment of the right to use the Localiza trademark.