Romanian entrepreneurs Marius Stefan, owner of Autonom Rent a Car company, and Adrian Mihai, Neculai Mihai and Felix Patrascanu, the stakeholders of courier services company FAN Courier, succeede, on two markets dominated by foreign giants such as Hertz (EUR2 billion globally) or Deutsche Post (DHL-EUR13 billion globally) in gaining the leading position.
Locally, there are few economic fields where Romanian-held companies boast the largest market share and lead in players’ ranking, considering multinationals’ strong expansion.
Only 25% of companies with revenue of above 500 million lei (EUR113 million) last year are controlled by Romanian entrepreneurs or the Romanian state, with the ranking of the almost 150 companies that went beyond the above-mentioned revenue level being dominated by foreign-held companies.
While giants UPS, DHL or French post office are present on the local courier services market, while US Avis, Hertz and Israeli-held Sixt operate on the local car rental services market, the leading position is held by the two Romanian-held companies.
How have FAN Courier and Autonom Rent a Car come to beat multinationals?
“We adapted to the market and by shifting to the online segment, by listening to clients, through innovation. We came up with new services, such as check-on delivery,” says Adrian Mihai, one of the three stakeholders in FAN Courier.
In 15 years, the three entrepreneurs reached 65,000 deliveries per day, from 3 in 1998 and revenue of RON280 million (EUR64 million). Moreover, in the past six years FAN Courier generated total net profit of EUR55 million, being one of the entrepreneurial businesses with solid gain margins during the crisis as well.
FAN Courier compete in Romania with giants such as DHL, with revenue of EUR13 billion globally, TNT, with revenue of around EUR7 billion internationally, and US giant UPS, with revenue of EUR55 billion globally.
While after the crisis onset most companies slashed budgets and investments, FAN Courier invested EUR18 million in a sorting belt, which helped the company boost process efficiency.
FAN Courier now has a 1,700-car fleet. In late 2013, the company had just 30 employees more than in 2008, but revenue doubled.
Another example of Romanian entrepreneur who won the battle with multinationals is Marius Stefan of Piatra Neamt, owner of Autonom Rent a Car. He runs the business together with his brother Dan Stefan.
He managed to increase the business from 3 cars to 2,000 cars in 25 cities last year and reached revenue of EUR12 million, placing him on the top position on the car rental market, where several multinationals are present.
“We are the only company of Romania with nationwide coverage. From what we know, this is also the only case in Europe of a local company being market leader,” said Stefan.
Autonom Rent a Car vies with giants such as Sixt (with 500 cars in Romania), with revenue of EUR1.67 billion globally, and US Avis and Hertz, with revenue of EUR4.6 billion and EUR2 billion globally.
The local company became market leader as it made use of all market opportunities. “Recently, business in the defense field also increased. We’re working a lot with subcontractors for US bases, for NATO.
Another opportunity was generated by Romanians working abroad. “There are 3 million people working abroad and to renew documents almost 600,000 return to Romania annually and they need mobility here. Few of them drive their personal cars from Spain or Italy,” says the entrepreneur.
(English version by Catalina Apostoiu)