Enterprise Rent-A-Car
KEL612
Revised March 21, 2012
MEGHAN BUSSE AND JEROEN SWINKELS
Enterprise Rent-A-Car
History
The American car rental industry was born on August 20, 1916, when Josiah Ellis “Joe”
Saunders, an entrepreneur living in Omaha, Nebraska, ran a seven-line classified ad offering
“Automobiles for Hire.” Saunders’s fleet consisted of one vehicle—a Model T Ford—that he rented for ten cents per mile.
The industry Saunders created grew dramatically with the advent of commercial air travel after World War II. In 1957 in St. Louis, Missouri, Jack Taylor founded the company that would become Enterprise Rent-A-Car (named after the aircraft carrier on which Jack had served as a pilot in World War II). Jack, a successful sales manager at a Cadillac …show more content…
Forty percent of these new hires would come from employee referrals.
An executive described the skills the company was seeking: “Enterprise is looking for individuals who are goal-oriented, and exhibit good problem solving ability, leadership and communication skills, sales and customer service skills, a strong work ethic, and flexibility.”2
Enterprise consciously did not target the “best and brightest” students, the usual targets for corporate recruiters. In the unvarnished words of another executive, “We hire from the half of the college class that makes the upper half possible. We want athletes, fraternity types—especially fraternity presidents and social directors. People people.”3 In the autobiographical words of one vice president, “Nobody ever went to college planning to go into the car rental business. . . . Then a time comes when that’s the opportunity that presents itself, and you grab it.”4
Enterprise offered these college graduates more than simply a paycheck—it gave them an opportunity to build a well-paying career, provided they were willing to work hard and learn. …show more content…
Customers who had car trouble or had their car damaged in an accident found themselves at a dealer’s service department or repair shop with no car and a need to get home, pick up their kids, or meet a client. In these circumstances referrals from managers at these facilities were very influential. For their part, service managers wanted a reliable provider they could trust to treat their customers well. Enterprise branches often established onsite offices at nearby auto dealers and repair shops so customers leaving their cars for repairs could rent a replacement without leaving the dealership. One service manager at a dealership with an
Enterprise onsite office said, “The Enterprise people are practically part of my staff.”20
18
“Enterprise Rent-A-Car to Acquire Vanguard Car Rental,” press release, March 30, 2007, http://www.enterpriseholdings.com/
PressReleases/ERAC-Vanguard_Acq_Mar07.pdf.
19
Gary Stoller, “Enterprise Muscles Its Way Onto Airport Scene,” USA Today, December 21, 2006, http://www.usatoday.com/travel/ news/2006-12-21-enterprise-usat_x.htm. 20
Ibid.
8
KELLOGG SCHOOL OF
Revised March 21, 2012
MEGHAN BUSSE AND JEROEN SWINKELS
Enterprise Rent-A-Car
History
The American car rental industry was born on August 20, 1916, when Josiah Ellis “Joe”
Saunders, an entrepreneur living in Omaha, Nebraska, ran a seven-line classified ad offering
“Automobiles for Hire.” Saunders’s fleet consisted of one vehicle—a Model T Ford—that he rented for ten cents per mile.
The industry Saunders created grew dramatically with the advent of commercial air travel after World War II. In 1957 in St. Louis, Missouri, Jack Taylor founded the company that would become Enterprise Rent-A-Car (named after the aircraft carrier on which Jack had served as a pilot in World War II). Jack, a successful sales manager at a Cadillac …show more content…
Forty percent of these new hires would come from employee referrals.
An executive described the skills the company was seeking: “Enterprise is looking for individuals who are goal-oriented, and exhibit good problem solving ability, leadership and communication skills, sales and customer service skills, a strong work ethic, and flexibility.”2
Enterprise consciously did not target the “best and brightest” students, the usual targets for corporate recruiters. In the unvarnished words of another executive, “We hire from the half of the college class that makes the upper half possible. We want athletes, fraternity types—especially fraternity presidents and social directors. People people.”3 In the autobiographical words of one vice president, “Nobody ever went to college planning to go into the car rental business. . . . Then a time comes when that’s the opportunity that presents itself, and you grab it.”4
Enterprise offered these college graduates more than simply a paycheck—it gave them an opportunity to build a well-paying career, provided they were willing to work hard and learn. …show more content…
Customers who had car trouble or had their car damaged in an accident found themselves at a dealer’s service department or repair shop with no car and a need to get home, pick up their kids, or meet a client. In these circumstances referrals from managers at these facilities were very influential. For their part, service managers wanted a reliable provider they could trust to treat their customers well. Enterprise branches often established onsite offices at nearby auto dealers and repair shops so customers leaving their cars for repairs could rent a replacement without leaving the dealership. One service manager at a dealership with an
Enterprise onsite office said, “The Enterprise people are practically part of my staff.”20
18
“Enterprise Rent-A-Car to Acquire Vanguard Car Rental,” press release, March 30, 2007, http://www.enterpriseholdings.com/
PressReleases/ERAC-Vanguard_Acq_Mar07.pdf.
19
Gary Stoller, “Enterprise Muscles Its Way Onto Airport Scene,” USA Today, December 21, 2006, http://www.usatoday.com/travel/ news/2006-12-21-enterprise-usat_x.htm. 20
Ibid.
8
KELLOGG SCHOOL OF