Global Stories of Billionaire Franchisors: Enterprise Rent-A-Car

Jack C. Taylor — Net Worth: $6.5 Billion

This college dropout and World War II Veteran was working for St. Louis Cadillac when he had his billion dollar idea.  Taking the leap into entrepreneurship, Taylor started a company that provided replacement cars to people who had suffered stolen or damaged vehicles.  The idea was born out of necessity, as Taylor recognized the need for such a service from his vantage point at the Cadillac dealership, but the venture also benefited immeasurably from a fortunate change in law: in the 1970s, courts ordered insurance companies to provide replacement cars and Taylor’s business skyrocketed. 

Enterprise’s strategic focus on replacement vehicles vs. vacation rentals, meanwhile, proved a competitive advantage over industry rivals as the most recent recession took hold: regardless of the economy, insurance companies must cover replacement cars after accidents and thefts; in the case of consumers lacking sufficient or quality insurance, replacement cars are still paid for (out-of-pocket), as few people can afford to take time off from work due to car troubles in a bad economy.

 This self-made-billionaire started out with just seven cars and a single employee, and grew his company — which is amazingly still privately held by the family — into the largest rental car provider in North America (and one of the largest private concerns in the world), employing some 68,000 people and capturing nearly $13 billion in annual revenue.  The organization today, formally named Enterprise Holdings, Inc., encompasses the flagship Enterprise brand as well as the National Car Rental franchise and Alamo Car Rental. 

Taylor built his empire by the motto, “Take care of your customers and your employees first, and the profits will follow.”

True to this vision, the company has been recognized on multiple occasions for its analytical approach to customer service, highly ranked management training program, and dedication to employee advancement.  In recent years Taylor has turned his attention to philanthropic causes, donating over $200 million to local communities, including $50 million to the 50 Million Tree Pledge, $40 million to the St. Louis Symphony Orchestra, $30 million to the Missouri Botanical Garden, $25 million to renewable energy research and $25 million to the Enterprise Rent-A-Car Scholars Program.

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