Ava AbbottU-Haul is a truck and trailer rental company specializing in moving and storage services. It was founded in 1945 by Leonard Shoen and expanded through franchising to become the go-to service provider.
Based in Phoenix, Arizona, U-Haul is a household name synonymous with the moving and storage business. U-Haul is a subsidiary of AMERCO and employs around 19,500 people. For the full year 2020, U-Haul’s revenue was $4.23 billion, up from $3.66 billion earned in 2019. Self-moving equipment rental revenues increased 15%, and self-storage sales surged by 14%. [1]
Since its founding, U-Haul has set its business apart from the competition by offering high-quality, all-in-one moving services, including labor. It also provides moving supplies, including moving boxes, bags, hitches, bike and wheelchair carriers, and more. Customers can purchase additional mileage at $0.40/mile if they need extra days to move.
The company’s rental trucks come in a variety of sizes. Customers with small loads can rent 8 ft., 9 ft., and 10 ft. moving trucks, while 15 ft., 20 ft., and 26 ft. trucks transport large loads.
As the leading service provider in this sector, U-Haul has to fend off its top competitors and alternatives like Penske, Rush, and Hertz. [2]
Here is an in-depth analysis of top U-Haul’s competitors and alternatives:
1. Penske
Year founded: 1969
Headquarter: Reading, Pennsylvania
Penske offers truck rental and logistics services in North America, South America, Europe, Asia, and Australia. It also provides truck leasing and fleet maintenance. For the full-year 2020, Penske reported $164.5 million in earnings compared to $142.4 million for 2019.
The company has around 36,000 employees worldwide, nearly double U-Haul’s workforce. Penske has over 2,500 locations in North America and a fleet of over 300,000 vehicles, including 12 ft., 16 ft., 22 ft. and 26 ft. rental trucks.
The company’s portfolio matches U-Haul’s moving services punch-by-punch. Like U-Haul, Penske’s full-service includes moving supplies and labor. Customers pay between $59.99 and $99.99 per day or $0.79-$0.99 per mile, which is costs more than U-Haul.
Penske is a subsidiary of Penske Automotive Group that generates over $20 billion in revenues annually. With the Group’s backing, Penske has the resources to compete with U-Haul and grab its market share. [3]
2. Rush Enterprises
Year founded: 1965
Headquarter: New Braunfels, Texas
Rush Enterprises, aka Enterprise, is a commercial vehicle company that operates one of the largest car dealerships in North America. The company also offers truck leasing and rental services, which compete with U-Haul. In 2020, Rush’s annual revenue was $4.7 billion with a net income of $114.9 million. [4]
Like U-Haul, Rush Truck Leasing operates under a franchise model. The service has more than 8,800 trucks offered to consumers via 45 Pac-Lease and Idea-Lease franchises. Enterprise also has over 1,000 trucks under contract maintenance agreements.
In the first half of 2021, Rush Enterprises’ lease and rental revenues increased by 7.2%. The company’s massive rental fleet and growing revenues make it one of the top competitors for U-Haul. [5]
3. Budget Truck Rental
Year founded: 1998
Headquarter: Parsippany, New Jersey
Budget Truck Rental is a rental company that operates in 2,800 locations across the US. With over 32,000 trucks, Budget is the second-largest truck rental company in the US market. The company is a subsidiary of Avis Budget Group, one of the leaders in car rental services. Budget Truck Rental has around 1,100 employees with an annual turnover of $374 million.
Like U-Haul, Budget Rental Truck offers all-in-one moving services, including moving supplies. It provides 10 ft., 12 ft., 16 ft., and 24 ft. trucks for leasing and rental. The main competitive advantage for Budget Rentals over U-Haul is its low prices.
Customers pay $27.61 + $0.47/mile for rentals under 100 miles, while U-Haul costs $38.70 + $0.99/mile. It is about $10 cheaper than U-Haul. Budget Rental Truck is the cost-effective alternative to U-Haul. [6]
4. Home Depot Truck Rental
Year founded: 1993
Headquarter: Atlanta, Georgia
Home Depot is the largest home improvement retailer in the US, with over 2,200 stores nationwide. The company also provides truck rentals. This service was meant to help customers transport their purchases home but evolved into a standalone moving business. For fiscal 2021, Home Depot’s revenue increased by 19.85% to $132.11 billion.
Home Depot Truck Rental recently added home moves to its services and now competes with U-Haul across the board. Unlike U-Haul, Home Depot’s service offers unlimited mileage. It charges based on usage time rather than per mile. However, Home Depot doesn’t offer one-way rentals. Home Depot’s fleet includes flatbed pickups, cargo vans, and moving box trucks.
For the first 75 minutes, the cargo van costs $19, and box truck rentals start at $29. Then, customers pay $5 for every 15 minutes after the first 75 minutes. Renting HD’s cargo van for two hours will cost $24, cheaper than U-Haul’s $38.70 + $0.99/mile. Home Depot Truck Rental is a top U-Haul competitor and the best alternative for hourly truck rentals. [7]
5. Hertz
Year founded: 1918
Headquarter: Estero, Florida
Hertz is one of the largest car and truck rental service providers globally. The company owns several U-Haul competitors, including Thrifty and Dollar. In 2019, Hertz made over $7.5 billion in annual revenues. But the health crisis wiped out the demand for car rentals and threatened the company’s existence.
Hertz missed lease payments on its fleet in April 2020. By May 2020, the company had more than $18 billion in debt and filed for Chapter 11 bankruptcy protection. Despite the challenges, Hertz rallied its supporters and investors throughout the second half of 2020.
Hertz sold 180,000 cars on its fleet and $29 million in stock and raised $5.9 billion from its new investor group. After more than a year, Hertz emerged from bankruptcy in Jul 2021 with enough financial resources to reclaim its market share. Hertz is a worthy competitor for U-Haul. [8]
6. Ryder Truck Rental
Year founded: 1933
Headquarter: Miami, Florida
Ryder is a transportation and logistics company specializing in fleet and supply chain management. The company’s fleet of commercial rental trucks competes with U-Haul’s moving services. In 2020, Ryder had 39,900 employees and generated $8.42 billion in revenues.
Ryder is grappling with declining demand due to the health crisis. For full-year 2020, Ryder recorded a loss of $122.3 million. Its losses increased by nearly $100 million from a loss of $24.4 million in 2019.
Two Ryder business segments out of three reported a significant decline in revenue in 2020. As economies reopen in 2021, you can expect Ryder to regain its profitability, compete more aggressively, and increase its market share. With over 85 years in the sector, Ryder is one of the most experienced U-Haul competitors. [9]
7. Alamo
Year founded: 1974
Headquarter: Clayton, Missouri
Alamo is a car and truck rental agency. The company’s car rental business (Alamo Rent a Car) has offices globally, and it is more popular than its moving services. In 2020, Alamo’s global revenue was around $22.5 billion.
Unlike U-Haul, Alamo truck rentals only offer pickup trucks or small cargo vans. It doesn’t have a lot of options, which can push some customers to U-Haul. But the company has more than 1,000 locations in the US and offers more deals and discounts than most of U-Haul’s competitors.
Alamo recently redesigned its website with new features that streamline the rental process and improved users’ experience. This integrated platform allows for online check-ins and reservations.
Loyal customers can become Alamo Insiders, which comes with cost-cutting perks and benefits. Alamo is budget-friendly and the best U-Haul alternative for moving small loads. [10]
8. Avis Budget Group Inc.
Year founded: 1946
Headquarter: Parsippany, New Jersey
Avis is an American rental car company that owns Budget Truck Rental, one of U-Haul’s top 5 competitors. It also offers truck rentals via franchises and company-operated locations. In 2020, Avis’ company-operated locations generated $3 billion in revenues.
Rentals by commercial customers delivered about $1.4 billion, and car rentals at airports contributed $1.6 billion.
Avis is similar to Alamo and offers limited truck rental options compared to U-Haul. The main competitive advantage for Avis over U-Haul is its diversified portfolio. In the wake of the health crisis, Avis realigned its fleet to exploit more profitable rental sectors. In the second half of 2021, the company is focusing its business around leisure customers as economies attain some sense of normalcy. Its daily revenue is increasing by 12%, thanks to this unique strategy.
Avis is one of the most innovative competitors for U-Haul. [11]
9. SIXT
Year founded: 1912
Headquarter: Pullach, Germany
SIXT is a global mobility service provider specializing in vehicle rentals (SIXT rent), car-sharing (SIXT share), ride-hailing (SIXT ride), and subscription (SIXT+). The company operates about 2,100 locations in over 110 countries. In 2020, SIXT’s revenue declined by 38.8% from $2.9 billion (EUR 2.5 billion) to $1.8 billion (EUR 1.53 billion).
Despite the decline in revenues, SIXT stands out as one of the most tech-driven mobility services. The company reduced its fleet by 25% in 2020 to cut costs and mitigate the effects of the health crisis.
In Jan 2021, SIXT introduced the Van & Truck segment to exploit this growth market. It will leverage its technological expertise to attain a market-leading position in the truck rentals sector. SIXT already operates in the US and has the resources to grab U-Haul’s market share. [12]
10. Thrifty
Year founded: 1958
Headquarter: Estero, Florida
Thrifty is a car rental company operated by Hertz, along with Dollar Car Rental. It rents out trucks and vans via its 340 company-owned locations and 1,500 franchises in the US.
Thrifty lost a portion of its fleet after Hertz filed for bankruptcy and restructured in May 2020. But the company still has a substantial fleet of pickup trucks, vans, and minivans to challenge U-Haul’s dominance. The backing of Hertz and Dollar Car Rental increases Thrifty’s competitive edge. [13]
References & more information
- AMERCO (2021, May 26). AMERCO Reports Fiscal 2021 Financial Results. PR Newswire
- White, M. (2021, Jun 20). 11 Key Things to Know When Renting a Truck or Trailer from U-Haul. Moving.com
- Penske Automotive Group, Inc. (2021, Feb 10). Penske Automotive Reports Record Results. PR Newswire
- Rush Enterprises, Inc. (2021, Feb 10). Rush Enterprises, Inc. Reports Fourth Quarter and Year-end 2020 Results, Announces $0.18 Per Share Dividend. Globe Newswire
- Grabarek, B. (2021, Jul 21). Rush Enterprise reports a Q2 net income of $58 million. TPS Online
- Roberts, J. (2021, Aug 5). Budget vs. U-Haul 2021. Move.Org
- Gassett, B. (2021, Mar 23). What to Know About Renting a Truck at Home Depot for Your Move. RIS Media
- Kosik, A. (2021, Jul 1). Hertz emerges from bankruptcy. CNN
- Ronan, D. (2021, Feb 11). Ryder Reports Q4 Improved Earnings. Transport Topics News
- Auto Rental Staff (2021, Mar 10). Alamo Launches Redesigned Website. Auto Rental News
- Sanjana, S. (2021, May 3). US car rental firm Avis Budget tops revenue estimates as demand recovers. Reuters
- Greven, K. (2021, Mar 2). SIXT closes 2020 with a slight profit in Europe. DGAP News
- Gilbertson, D. (2021, Apr 10). A $750 car rental for three days? Don’t wait to book a rental car and other tips to avoid sticker shock. USA Today
- Featured image by Brooke Cagle
Kevin Johnson
Brianna Parker
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