Canadians Turn to EV Rentals as Fuel Prices Soar

Steve Liborio was surprised by a renewed surge in interest for electric vehicle rentals this year, several years after the rental industry’s early push into EVs failed to take off. Liborio doesn’t offer EVs at his Thrifty Car Rental franchise in Burlington, Ont., so he’s relied on his small but dependable fleet of hybrids to meet customer demand.

“People don’t usually call and ask specifically for a hybrid,” he said. “They ask for EVs.” Many renters accept a hybrid instead—even with an extra $10 per day—because the fuel savings often offset the higher daily rate.

Gas prices drive interest in EV rentals

As elevated fuel prices squeeze travel budgets this summer, more Canadians are looking to electric vehicles to avoid frequent stops at gas stations. But rental EV inventory is limited, and many consumers searching for EVs will find few available on lots across the country.

This renewed interest follows a spike in gasoline prices earlier this year. Until recently, many renters opted for conventional gas cars because of concerns about EV range, the availability of charging stations and the time required to charge during a trip.

Some rental operators reduced or sold off EVs after early experiments proved unprofitable due to low consumer uptake and higher maintenance costs. For example, a major international rental company reversed part of its electrification strategy and liquidated a portion of its EV holdings. The Canadian EV rental market remains relatively small and concentrated in urban centres with established charging infrastructure.

Rental companies unlikely to expand EV fleets

Industry observers say it’s unlikely that most rental companies will substantially increase their EV fleets in response to this short-term uptick in demand. Many fleets were rebuilt after pandemic-era supply constraints, and most available vehicles on the market have been gas-powered. For many operators, the recent rise in EV bookings is not large enough to change long-term fleet acquisition plans.

Still, interest in EVs at dealerships and among private buyers has risen. Government incentives have played a role: the federal EV rebate program reintroduced in February helped reduce sticker shock for buyers, and several provinces saw a significant jump in EV sales following those rebates. Transport Canada reports that Canadians claimed substantial federal subsidies for new EVs in the months after the rebate resumed.

Peer-to-peer rental platforms have seen a sharper rise in EV and hybrid bookings. Turo Canada reported a significant year-over-year increase in EV reservations and a pronounced jump in searches for hybrid vehicles, signaling a broader shift toward fuel-efficient options. The platform’s listing mix includes a few thousand EVs and hybrids, and demand tends to peak around holidays and long weekends.

Summer demand tightens EV rental supply

As summer travel ramps up, EV availability on rental sites is tightening. Some models are already booking up for popular travel dates, leaving many renters choosing hybrids or conventional cars instead.

Major national rental companies report a limited—but growing—number of hybrids and electric vehicles in markets that can support them. One global operator said it has nearly 160,000 hybrids and EVs worldwide, with a smaller portion allocated to Canadian locations where demand and charging infrastructure exist.

Frequent renter Jeff Bannard of Calgary says he’ll rent an EV when it’s the most economical option, but he’s noticed EVs can be 20% to 30% more expensive per day than small gas cars. Even so, Bannard points out that charging costs at public fast-charging stations are often lower than the equivalent cost of gasoline, so total trip costs can still be favorable depending on distance and charging rates.

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