When multinationals cut corners and put money ahead of customer safety
On June 27th, 2024, while returning from a college convocation, my wife and I experienced a flat tire while driving a 2024 Chevy Malibu that we had rented from AVIS rent a car.
As a college professor of International Business and Marketing there is no greater feeling than seeing your students reach a life milestone and be able to share in their moment of joy, as they graduate.
Unfortunately, AVIS rent a car managed to turn this very special day into a very unpleasant ordeal. Let me explain why, and maybe other companies can learn a lesson or two in why they need to take better responsibility in customer care, be more transparent with customers and ultimately use good judgement when they have made an error, as opposed to, blaming the customer for their own negligence and shortcomings.
My wife and I attending Convocation – June 27th 2024
The Back Story
My experience with AVIS rent a car began in January of 2024. I had just gotten a contract to teach at a top Canadian college and found myself in need of a vehicle to drive from Toronto to Kitchener once a week given that I did not have a vehicle at the time. When discussing my needs with Mr. Joseph Gebraye, the manager at the AVIS outlet on 80 Bloor and Yonge street in Downtown Toronto, he was accommodating and helpful. I told him that I needed a vehicle for this specific purpose and rather than leasing a car it made more sense to rent one from a company that could give me a good deal. I also made it clear that road safety was a priority, especially during the brutal winter months of Toronto and given the fact that I would be on the highway.
The Chevy Malibu 2024 – we had no idea it didn’t come with a spare tire because AVIS failed to inform us of this important detail
From what I was told, all AVIS vehicles come with preexisting insurance by law otherwise the vehicles would not be allowed on the road and that any extended insurance coverage was good to have in order to protect the driver, passenger and any damages made to the vehicle in the event of an accident where I was at fault. With my spotless driving record, I decided to decline the extended insurance. I was also NOT told of any additional services such as roadside assistance that covers flat tire repair and towing services. But well get to that a little later.
So, for the past 6 months, under the assumption that Mr. Josephe Gebraye was clear on why I needed the vehicle and why I was renting it from AVIS I was given the Chevy Malibu. During this time, I also became a premium plus member with AVIS because of the frequency of my renting from them for the same trip, same journey, and same duration that I was traveling, each week.
The day of incident
Fast forward to June 27th, 2024 at 12 noon. While on the highway heading back to Toronto, I noticed the dashboard indicator showed that the air pressure on the rear left tire was low. Upon seeing the signal, and not wanting to endanger my wife who was accompanying me I pulled to the side of the highway and turned on our emergency blinkers.
The flat tire on the side of the highway
The rear left tire indicator showing low tire pressure
I got out of the car and saw that we had a flat tire. At this point, I only had one option and that was to change the tire and head to the nearest tire repair shop so an expert could either fix the puncture or replace it so I could get back to AVIS and return the vehicle on time.
To my surprise after opening the trunk I realized that there was NO SPARE TIRE nor were there any tools.
My first reaction was that of disbelief.
How could a car rental company be so negligent to offer a vehicle to a customer without having all the safety measures in place, especially a repeat customer, a premium plus customer and someone they knew was driving the vehicle with a specific purpose and intent on the highway for the past 6 months.
The boot of the Chevy Malibu with no spare tire
Realizing the predicament we were in, I proceeded to call the AVIS roadside assistance number that was on the keychain.
The call center representative took down our vehicle information and contacted the 80 Bloor and Yonge AVIS outlet. After notifying them that the vehicle had no spare someone at the AVIS center passed on the following message to us, “we will send a tow truck, but you will have to pay for it” to which I explained, “why would I need to pay for it when there is no spare tire in the trunk”.
Had there been a spare tire, I could have easy changed the flat and drove to a tire repair shop and fixed the problem myself. It’s common knowledge to everyone who rents vehicles that rental companies charge an arm and a leg for the smallest of issues related to cars and I did not want to pay extra knowing I could have fixed the problem at a fraction of the cost. At that point I was told that the towing cost was $150 to lift the car and drive it to the nearest AVIS center which for us meant going back to Kitchener.
What came after was unbelievable
After almost 3.5 hours the roadside assistance representative finally found a tow truck with a flatbed that picked my wife and I up. We were both dressed for a special day but sadly ended up sitting in an oily tow truck because AVIS was negligent enough to give us a car WITHOUT a spare tire.
The Tow Truck that came 3.5 hours later with a flatbed – even they couldn’t change the flat tire without a spare
Once we reached the AVIS outlet in Kitchener, I was asked to fill out an incident form, which I did in a hurry so I could be on my way home. Initially, I assumed the tire that had given out was older than the other three. It was hard to imagine that a 2024 vehicle with new continental tires and only 1800 km could have a puncture with such a small piercing. I was wrong after seeing the pictures AVIS sent me. It was indeed a small puncture (image below) that could have easily been repaired had there been a spare in the trunk and had I been given the opportunity to take it in to a repair shop myself.
The small puncture in a continental tire on a new Chevy Malibu
The incident form that I filled out stating no spare tire
While my wife and I were both tired and not happy with the predicament we were in, I asked the staff at the AVIS Kitchener if it was common practice for AVIS to rent out vehicles without a spare and he told us that it was not the case at all and that all vehicles came fully equipped with a tire and tools. I also asked him to show me a vehicle they had on the car lot, and he was right. The same range of cars that we had rented all had spares. The audacity of the 80 Bloor and Yonge AVIS for not telling us that the Chevy Malibu did not come with a spare was unbelievable and infuriating at that point. How could a manager be so negligent and careless? Had I been told that this type of vehicle did not come with a spare tire I would NEVER have accepted this car knowing where I was going each week.
After 30 minutes, we finally got our replacement vehicle and headed back to Toronto. But just as we were about to leave the AVIS staff at Kitchener asked if we had filled the gas tank for the Malibu to which I looked at him and replied, “how could I do that with a flat tire and the car on top of a tow truck?” The reason why I add this part of the conversation is because they charged us $55 to fill-up a $10 tank on a car that I did not have access to even though we filled the tank on the replacement car before handing it in. AVIS wants to squeeze every penny from every bad situation at the expense of the customer.
AVIS email exchanges
By the time we got back to Toronto it was after 6pm. What usually would have been a 1 hour and 40 minute drive took us 6 hours to get back home. That night I sent Mr. Joseph Gebraye an email trying to explain what had happened and how negligent his outlet was in giving me a vehicle without a spare tire knowing full well that I would be on the highway. Here is the answer I got, “we don’t control what is in the car, it’s what we get from the manufacturers”.
In my reply to his initial comment I stated, “if that’s the case shouldn’t you have informed me, the customer, that there is NO SPARE TIRE in the vehicle and shouldn’t I have had the right to accept or reject those terms for a vehicle without a spare tire.” Clearly, the last thing I was expecting was a car without a standard spare tire. Had I known about it, there is NO WAY I would have accepted that model of vehicle and would have opted for a different make or model.
I say this because for the past 6 months AVIS had put in my possession a Chevy Malibu that had no spare tire and I am just thankful that this incident did not take place in the middle of winter in minus 15 to 20 degree Toronto weather with my wife beside me.
Realizing that the outlet manager was trying hard to protect himself and staff at 80 Bloor and Yonge Street, I asked to speak with the Vice President of Customer Care at AVIS. What I got instead were a series of communication calls and emails from the operational managers in Toronto namely, Mr. Sidhu Gurpreet, Mr. Jack Lee, Mr. Leo (didn’t get his last name), and ultimately ended up communicating with the Vice President of Government and Legal Affairs, Mr. Robert Muhs in New Jersey, US, all saying the same thing, “this is the way we got the car from the manufacturer and that I was the cause of the puncture so I had to pay for the new tire and the tow truck”.
The REAL FEES vs AVIS FEES
So, even after explaining to them that the vehicle they had put in my possession did not come with a spare tire thus DENYING me the opportunity to fix the tire myself at a lower cost, my credit card was charged $510.09 (cost of the tire) + $150.26 (the towing service) + $89.10 (car rental). At no time did any of them accept responsibility for not telling me that this vehicle lacked proper motor vehicle safety standards which includes having a spare tire. What the malibu comes with is an inflatable that no one knows how to use and when I checked reviews online hundreds of people stated that the inflatable barely worked right and was good for short city distances and certainly NOT suitable for the highway. Which is why most people who buy a Chevy Malibu opt into buying a spare tire themselves. This is something AVIS should have done.
Over the next few days after realizing that AVIS was determined with their decision and was not ready to accept fault, I checked with a tire repair shop and got a quote saying they could fix the existing tire (I sent them a photo with the small puncture) at a fee of $35 for the puncture making the tire as good as new or if I wanted to change the tire it would cost $350 that came with a lifestyle free repair. LIFETIME they said which got me thinking, shouldn’t AVIS, a global company have this kind of deal with the manufacturers of the vehicles. Shouldn’t Chevy offer this kind of service in the first place on their new vehicles with less than 1800 km. Someone at AVIS legal and or business development should negotiate better terms rather than pass the cost on to the customer. If I could get this offer, shouldn’t they have the clout to get an even better deal?
The same brand and model of tire that was on the Chevy Malibu at $350 with lifetime FREE repairs.
My WhatsApp communication with a tire shop that could fix the tire for $35
Well, eventually, here’s the offer Mr. Muhs finally stated in his last email, “…, as it relates to the cost of a tire for $235, It is my understanding that, provided such tire matched the other tires and was an approved tire by the manufacturer, we would review the receipt and take the tire and credit you the difference. That offer stands until close of business on July 19, 2024.”
With the details I had sent them and the fact that there was no spare in the car they still refused to reimburse me, and as of today, I have not received a penny which is why I decided to write this case study, to share this real life example of negligence in my classes as it relates to Service Marketing, international business and entrepreneurship.
It is precisely because of issues like this that new, smart and more flexible startups emerge to put dinosaur companies who no longer care for customers out of business. My wife and I were content with AVIS until we found out that no one at AVIS really cares to accept responsibility.
Now we will be using service providers such as ROAM, TURO, CRX and other independent rental service providers who offer a complete package that includes insurance, roadside assistance and rental of the vehicle all in one price. As for AVIS, they will either need to seriously change their ways to become more customer centric or be driven out of business as more customers, like us, begin to search for alternative options.
The BRAND IMPACT
What could have easily been handled in a more customer friendly manner at the branch level ended up with a dissatisfied customer who will most likely never rent a car from AVIS again. And this is the real issue, companies in North America are losing their soul. Many are forgetting that at the end of the day they are here to meet a need, solve a problem, overcome an obstacle and ultimately to help others.
As a college professor this is the first thing I teach my students, Service Marketing is all about finding ways to SERVE, and in the process be rewarded for improving other people’s lives. It’s not about the money, as a matter of fact, its not at all about the money. Money is simply the byproduct of a good deed and so long as you maintain a relationship founded on honesty, transparency and trust, companies will be rewarded financially through “customer loyalty”.
All AVIS had to do was to accept the fact that they failed to offer me a car with a spare tire and for that they should have taken responsibility for what came after instead of blaming me and the manufacturer, in this case Chevy. They blamed Chevy for not coming with a spare, they blamed me for not buying the extra insurance and they blamed the road for causing the puncture.
I still hope they will do the right thing and pay back the money they have wrongfully taken and the distress they have caused but until then I will leave this story out there as a lesson for anyone interested in customer care or, in this case, the lack thereof.
To create a conversation on Customer Care let me ask you,
What would you have done to protect BRAND REPUTATION & maintain CUSTOMER LOYALTY if you were the manager at AVIS rent a car at 80 Bloor and Yonge now that you have read this case study?
Leave your thoughts below. I would love to hear from you.
Lessons Learned
This case highlights several critical failures in customer service and operational management:
- Lack of Transparency: AVIS failed to inform me that the vehicle did not come with a spare tire, denying me the opportunity to choose a different vehicle.
- Inadequate Customer Support: The response from AVIS’s roadside assistance and the local outlet was slow and unhelpful, exacerbating my frustration.
- Failure to Accept Responsibility: AVIS repeatedly blamed external factors rather than acknowledging their negligence in providing a vehicle without necessary safety equipment.
- Overcharging: The additional fees charged to me were unjustified, given that the situation arose from AVIS’s initial failure to equip the vehicle properly.
Recommendations for AVIS
To repair its brand reputation and maintain customer loyalty, AVIS should take the following steps:
- Acknowledge Mistakes: Admit the failure to provide a vehicle with a spare tire and apologize to the customer.
- Reimburse Costs: Refund all charges related to the incident, including the towing service and the cost of the new tire.
- Improve Communication: Ensure that all relevant information about the vehicle is communicated to the customer at the time of rental.
- Enhance Training: Train employees on the importance of transparency, customer care, and handling emergencies efficiently.
- Policy Changes: Implement a policy to check and confirm the presence of essential safety equipment in all rental vehicles before handing them over to customers.
Conclusion
This case study serves as a stark reminder of the importance of customer service in maintaining brand loyalty and reputation. AVIS’s mishandling of the situation not only resulted in financial loss for the customer but also tarnished the company’s image. By learning from this incident and implementing the recommended changes, AVIS can improve its service standards and prevent similar occurrences in the future.
Discussion Questions
- What are the key elements of good customer service that AVIS failed to uphold in this case?
- How could better communication and transparency have changed the outcome of this situation?
- What steps should AVIS take to ensure such incidents do not happen in the future?
- How can companies balance cost-cutting measures with maintaining high standards of customer safety and satisfaction?
- What role does accepting responsibility play in customer service and brand reputation management?
UPDATE – October 31 / 2024
So in light of the fact that AVIS decided NOT to honor their contract obligations of providing a vehicle suitable for the purpose I had contracted their services for and having gone through the Canadian consumer protection agency (that did absolutely nothing), lawyers that wanted to charge an arm and leg to take this case to small claims court and anyone else I could raise this issue with I decided to take matters into my own hands and file a dispute with my CIBC credit card company in August. After their investigation and their legal department getting involved I finally got a message in October that my dispute claim was valid and that the entire amount of $660 and change would be returned to me.
