Peer to peer car sharing is a great way to earn money by renting your personal vehicle to those who need it.
It is definitely a win-win approach for both car owners and travelers, as first get money, and second get an adventure. Add also significant traffic reduction, lower pollution, CO2 emission decrease, and other ecological benefits to all this stuff, and you will get what I am talking about.
The car sharing market is still in development stage, especially in European countries.
Nevertheless, it has a far-reaching future and potential growth.
According to Global Market Insights, Car Sharing Market size is set to exceed USD 16.5 billion by 2024. Sounds promising. Want to make a difference and develop a car rental app for your city or country? It`s time to start!
First, lets check out the most famous competitors on the market.
Best Car Rental Websites
Turo is a pioneer of a car rental marketplace. It allows you to rent a car anytime and anywhere from a supportive local community of car owners. Turo is available in 2500+ cities and 300+ airports throughout the United States.
It is a great example of how a small startup can turn into a large peer to peer car sharing marketplace with $97 Million funding.
Skurt is a Los Angeles-based rental car delivery startup. Here is how it works. Users request a car and it is delivered to them within 60 minutes after booking. Skurt also partners with fleet owners, which makes it operate somewhere between the ordinary car rental company and peer-to-peer service like Turo. Skurt is available in Los Angeles, San Diego & Miami.
With Getaround, you can rent 1000's of cars from Toyota to BMW, to Tesla and unlock them all with your phone. Here is how they make it. When the owner lists a car, the Getaround personnel installs there a special electronic device called Carkit.
This device can unlock the doors with the Getaround app; tracks the car's location, allows Getaround to disable the ignition and locate the car if it is stolen and even control the fuel levels.
With this app, there is no need to meet with the car owner in person, which saves both yours and renter's time.
Without doubt, Turo remains the most popular car sharing marketplace available in over 4,700 cities across the US, Canada, and the UK.
Here is how it works.
How Does Turo App Work
If you want to develop an app like Turo, you have to know the basic business model of car sharing apps. Let's dive deeper into it.
- Describe your car (enter the year, model, transmission, and odometer info).
- Add your personal photo and photo of your car Turo automatically sets the car`s rental price based on market value, location, season, and other data. You can also do it manually.
- Put the available dates of the rent on a calendar.
- Get notifications when someone wants to book your car.
- Meet with your guest, check the license, together check your car, and hand over the keys.
- After the trip, pick up your car and make sure that everything is in order.
- You can also leave a review about the traveler.
What Is Important To Remember
Turo provides car owners with $1 million liability insurance policy that protects your car against damages during the rental period. Moreover, before renting a car you should take photos of each vehicle’s angle and check it before and after the rent. You can read more about insurance policy here.
Turo screens each traveler by gathering the following information: driver's license information, payment card information, auto insurance score from a consumer reporting agency. Additionally, the trip's scheduled start and end times must be approved via the system.
- Enter location, travel dates, and price to see the list of cars. You can also choose more filters such as vehicle type, vehicle makes, category, color, transmission, etc.
- Book the car
- Meet with driver
- Enjoy the trip
In order to make a car rental website, you need to choose the right features that will make it user-friendly and convenient.
Choosing the Right Set of Features for Your Car Sharing App
Here are the main car app features you may need.
- Registration via Facebook or Gmail
- Find a car by your current location or apply different filters
- View the available cars on the list or on the map
- View the information about the car
- Book the car
- Add to favorites
- Read reviews
- List a car
- Calculate the market value of your car
- User profile
Peer to Peer Car Sharing Business Model
The business model of most car sharing apps is optimizing the available cars instead of buying new ones. Usually, car sharing apps take a percentage cut from the car rent price.
This is actually the concept of sharing economy, where car owners share not only their car, but also the revenue from its rent.
What You Should Know to Build a P2P Car Rental Marketplace
- Provide a safety
No one will use your app until they are confident in the safety of sharing a car with an unknown person. Incorporate driver`s scanning into your app. The system must check the driving license and driving history in order to identify a person. Include reviews and logging-in via social media networks. This all will help you to build a community of responsible drivers and car owners that trust each other!
- Work with insurance
Providing your users with insurance should be your first priority. Usually, peer-to-peer sharing companies partner with car insurance suppliers, as your ordinary car insurance policy will not allow you to rent your car out on a peer-to-peer marketplace.
- Offer a value
One of the benefits of P2P car sharing is that a car owner can recover a portion of his or her monthly vehicle expenses. Car owners that use your app should get a profit from it. For example, Turo does take 25% of revenue from every rental but that covers insurance and the cost to list cars on the app. The rest is given to the car owner.
If you want to build a car sharing marketplace, first of all think about your mission. Remember this all is not about what you make, but about why you make it.
Rachel Bostman, the co-author of the book “What`s mine is yours: The Rise of Collaborative Consumption” has said: “Peer to peer car sharing involves the re-emergence of the community. This works because people can trust each other”.
Your aim is to build a responsible community of car owners and car users, who will make a step forward to travel and transportation improvement.
Here is also a bonus especially for you. We have created a free PDF checklist on how to build a successful startup: from business idea to MVP development. Feel free to download!