| “As of 2023, the car rental market size is valued at $122 billion and is expected to reach $245 billion within the next 10 years” |
Car rental market has become huge even after a lot of challenges and scope for improvement in the industry. The car rental apps like Turo have gotten way too expensive in the last few years due to vehicle shortage, high demand, and surge in gas prices. Further, most of the users have experienced some or other kind of bad expereince, be it a car break down, long waiting time, or hefty documentation.
All of this combinely opens up a great opportunity for a new car rental app in the market. If you are someone who is planning to build a car rental app and launch it, then this is a perfect time. In this article, we will help you understand the car rental market, top car rental apps like Turo for analysis, how car rental apps work, and other useful information.
| “Fact – North America dominates the global car rental market, with 52% market share” |
Turo is one of the most widely accessible peer-to-peer car rental apps serving over 5,000 places across the globe, including the US, Canada, Germany, and the UK.
Along with a large selection of vehicles, including Teslas, BMWs, Toyotas, and Hondas, Turo is also equipped to provide day rentals and is also known as Airbnb for cars. The Turo app might not be the greatest option for short trips as it does not provide hourly rentals.
Car rental apps like Turo have to make a number of adjustments and establish a functional model that not only helps with payment management but also simplifies car rental operations in order to make the current digital business models appropriate for P2P car rental operations. To understand how Turo works in the market, below is their revenue and business model –
Automobile owners post their vehicles on Turo, including the make, model, color, and transmission. Potential clients peruse these vehicles and rent the one that most closely matches their needs. For a few days or several weeks, Turo lends out cars. If a car is left parked for an extended period of time, it’s a terrific method for owners to earn extra cash.
| Fact – High operational cost and strict regulations are the top two challenges that car rental industry is currently facing |
The main way that peer-to-peer vehicle-rental platforms generate revenue is by taking a small commission-which varies depending on the platform—from each rental car reservation. Every transaction on Turo has a 25% rental commission, meaning that 25% of the rental cost paid in a transaction goes toward Turo’s pocket.
Turo bills its clients more for extra mileage in addition to a rental commission. Host fees, which include order cancellation fees, damage claim filing fees (only applicable if the host fails to upload pre- and post-trip vehicle condition photos), maintenance policy violation fees, vehicle misrepresentation fees, and more, further contribute to Turo’s revenue generation model.
Turo also levies different kinds of visitor fees on its users. Guest no show fees, smoking penalties, extra use charge, petrol replacement prices, EV charging fees, late return penalty, and pet regulation charge are some of the extra Turo charges that it takes from its users.
| Apps Like Turo | Founded | Downloads | Rating | Platforms |
|---|---|---|---|---|
| Get Around | 2009 | 1M+ | 3.5 | Android | iOS |
| Zipcar | 2000 | 1M+ | 4.1 | Android | iOS |
| Uber Rentals | 2009 | 500M+ | 4.6 | Android | iOS |
| Lyft Rentals | 2012 | 50M+ | 3.8 | Android | iOS |
| Hertz | 1918 | 1M+ | 4.0 | Android | iOS |
| Enterprise | 1957 | 1M+ | 4.7 | Android | iOS |
| Gig Car Share | 2017 | 100K+ | 3.8 | Android | iOS |
| SnappCar | 2011 | 100K+ | 3.1 | Android | iOS |
| Hui Car Share | 2018 | 10K+ | 4.5 | Android | iOS |
| Hyre Cars | 2014 | 100K+ | 4.9 | Android | iOS |
Getaround car rental is a well-known vehicle rental service and a top alternative to Turo with more than 200,000 users in 800 cities worldwide. Using the Getaround app or website, customers can search for and reserve cars in their neighborhood.
Getaround car rental raised $140 million and had over 6 million users in 2021. With this investment round, its venture capital funding amounted to $600 million. Getaround’s primary edge over competitors is its extensive and adaptable inventory, which encompasses eco-friendly vehicles.
Car rental apps like Getaround list rental cars that are available in the customers’ immediate vicinity. Through the site, car owners can hire their automobiles for an hour, day, week, or month. The business offers a $1 million insurance coverage for hired cars and has about 550 employees.
| Pros | Cons |
| Cost effective as compared to conventional method | Cars are not available in peak time |
| The service is available 24/7 | Users have reported errors & bugs in the app |
| Also includes EVs, SUVs, Luxury, and other car types |
Avis Budget Group runs the membership-based automobile rental business Zipcar. Long before Turo, the business released an in-car GPS monitoring system. Avis Budget Group employed about 500 people in 2021, and the company’s revenue climbed by 72% to $9.3 billion.
Members of apps like Zipcar can make car reservations and pay by the hour or day. In addition, there is a $25 application charge and a $7 monthly or $70 annual membership cost for its members. Further, apps like Zipcar employ the one-way approach in contrast to Turo.
By picking up and dropping off their cars at different locations, renters can avoid paying more for mileage. The ultimate price with this model includes the cost of petrol and insurance.
If a renter runs out of fuel, they can top off the tank with Zipcar’s petrol card.
| Pros | Cons |
| Users can book cars based upon hours | Not a viable option for long road trips or journey |
| The cars are owned by the company | Unhygienic cars are a common issue in the Zipcar fleet |
| The pricing includes no extra charge and is an all inclusive service |
Uber is a popular ridesharing firm with over 100 million monthly customers. Uber Rentals is their automobile rental service. The Uber app, which is available in 69 countries and more than 900 locations worldwide, allows users to reserve rental cars.
Uber employed 29,300 people and brought approximately $17.5 billion in sales in 2021. Apps like Uber Rentals provides rentals through independent auto rental firms including Hertz, Avis, and Dollar, in contrast to Turo business model. This strategy guarantees that clients have access to a variety of rental automobile choices, such as SUVs, sedans, and premium vehicles.
Renters travelling to pick up their rental cars can take advantage of discounts on Uber trips through this service, which is not limited to Uber users.
Customers must have a valid driver’s license and be at least 21 years old in order to hire through Uber.
| Pros | Cons |
| Users have the option to choose their car rental period | The price is as compared to other car rental apps |
| The platform is ideal for short term rides, majorly within the cities | Limited number of car options available |
| Uber Rentals doesn’t have any hidden or additional charge |
The ridesharing expert Lyft provides a car rental service called Lyft Rentals. Customers can use the Lyft website or app to rent cars. Lyft employed 4,369 people in 2021, and the company brought in $3.2 billion in revenue, a 36% increase. In 2021, the ride-hailing startup recorded its first-ever successful year, with a net income of $92.9 million.
Lyft Rentals operates on a two-way basis, meaning that clients must return their rented cars to the precise spot where they were picked up. Everything is available on this platform, including sedans, SUVs, and small automobiles.
Premium vehicles, such as Tesla and BMW, are available for rent, and complimentary add-ons can improve the rental experience. Turo and Lyft Rentals are comparable in a lot of ways. When it comes to short-term automobile rentals, this service is among the greatest alternatives to Turo.
| Pros | Cons |
| Higher discount for repeat and new users, including a $20 credit for airport pickup | Drivers have to visit the office once every month |
| The platform is highly convenient and quick for users | Car rental prices in Lyft Rental are higher than competitors |
| Lyft car also offers advance booking and pay later option to the users | |
| Users can cancel the booking without any cancellation fees |
Hertz is a 160-country vehicle rental firm with about 12,000 corporate and franchisee facilities. Owning Firefly Car Rental, Thrifty Car Rental, and Dollar Rent-A-Car, it is among the top turo competitors and biggest car rental companies globally.
Due to dwindling reservations, Hertz declared bankruptcy in 2020 despite earning $5.26 billion in sales annually. The corporation is valued at $16.9 billion and employs 24,000.
Hertz filed for Chapter 11 bankruptcy in July 2021, and in November of the same year, it reopened for business on the NASDAQ. The company’s goal is to reestablish itself as a leader in the vehicle rental industry by making investments that look forward. Hertz revealed in October 2021 that it would be electrifying its fleet by purchasing 100,000 Tesla cars in 2022.
| Pros | Cons |
| Wide variety of vehicles such as trucks, cars, SUVs, etc. | Higher price than other car rental apps |
| Loyalty programs & discounts for repeat customers and AAA users | Higher cancellation charge for users, upto $200 |
| Pickup and drop service available for users |
National Automobile Rental, Alamo Rent-A-Car, and Enterprise Rent-A-Car are all owned and operated by Enterprise Holdings, an automobile rental firm. In the car rental market, Enterprise is among the top turo competitors and has established itself well in the market.
On the other hand, Alamo and National provide rentals at airports. Enterprise employed about 80,000 people and brought up $23.9 billion in revenue in 2021.
The fleet of Enterprise Holdings comprises over 1.85 million automobiles. While Turo connects renters and automobile owners, the company leases out its own vehicles. About 350,000 of Enterprise Holdings’ vehicles were connected and new technology was launched in 2021.
In the next five years, this technology will allow the company to integrate its whole fleet and help them predict supply issues.
| Pros | Cons |
| Customization Option available such as car model selection | Prices surge upon customization |
| Reward points for users on every transaction | Users have reported about the unclean interior of cars |
| Excellent 24/7 customer support; both call & email | |
| Available in more than 8000 cities and vast fleet of cars |
The AAA organization runs a free car-sharing program called Gig Car Share. Only Sacramento, Seattle, and the San Francisco Bay Area have access to the service. In 2021, GIG’s membership climbed by 28% to more than 100,000 members. Over 1.6 million travels have been taken by its members.
The Toyota Prius Hybrid and Chevy Bolt are among the more than 1,000 hybrid and electric cars that are part of GIG Car Share’s fleet. In contrast to Turo, GIG employs a special concept that lets renters return the vehicle to any spot inside the pick-up HomeZone rather than the designated pick-up site. This model saves time and lowers mileage costs.
GIG Car Share won the AutoTech Breakthrough Awards’ Car Sharing Service of the Year in October 2021.
| Pros | Cons |
| Drivers have the freedom to drive for any company | The company app is not user friendly, has glitches, and is slow |
| Accessing the Gig rental cars is easy | Surge in prices are often reported by users |
| Robust customer support, available 24/7 round the clock |
One significant participant in the car-sharing market is SnappCar. Car owners may lend out their automobiles to people in need thanks to this cutting-edge technology. Providing an easy, cost-effective, and intelligent method of using an automobile whenever you need one is the aim here.
SnappCar stands out for its emphasis on cost. They reduce the cost of owning a car to that of carsharing. Car owners can rent out their automobiles using SnappCar Keyless without having to give the keys to the tenant in person. In this way, renting becomes safer and easier.
With the help of the SnappCar app, renting and returning a car is a simple and intimate process. Using your phone, you may manage your rentals, arrange a ride, and peruse the available automobiles.
| Pros | Cons |
| Lower charge as compared to other apps in the market | SnappCar charges fees to car owners and users |
| 24/7 RSA (roadside assistance) available in the market | Long Waiting time for returning the user deposit |
| The price is all inclusive, including gas, maintenance, tax, and repairs | The platform has mileage limits |
A major participant in the car-sharing industry, Hui Car Share competes head-to-head with Turo to offer automobile rental services. They have created a platform that lets people rent cars for short amounts of time—from a few hours to many days.
It’s similar to having access to a fleet of cars without all the hassles of ownership. The entire procedure is made to be as convenient and flexible as possible, from booking a car through their app to picking it up at a designated spot to returning it when you’re done.
From small automobiles for commuting in the city to larger cars for family vacations or group activities, Hui Car Share offers a wide variety of vehicles. To ensure that renters have a dependable and enjoyable experience, their fleet is regularly maintained and serviced.
| Pros | Cons |
| The platform has an eco friendly fleet such as Hybrid & electric cars | The pricing model requires users to one time pay membership fees |
| Price is all inclusive, offering a simple cost structure and rental process | Limited fleet availability as it offers a range of eco friendly vehicles |
| Hui Cars are available 24/7, providing flexibility and convenience | The platform availability is limited to Hawaii and not other regions |
HyreCar shares a common objective with Turo, which is to enable car usage without ownership. With a distinctive twist, HyreCar targets drivers who wish to work for ride-sharing services like Uber and Lyft but lack a suitable vehicle. They put these prospective drivers in touch with automobile owners who are ready to hire out their vehicles.
By 2020, this turo competitor had thousands of rental automobiles accessible and over 100,000 users. This is still a sizable user base, even though it may seem little in comparison to Turo’s millions of members and hundreds of thousands of cars. Moreover, HyreCar operates in numerous American cities, much as Turo.
| Pros | Cons |
| Drivers can rent a car through the platform to earn extra money | Car maintenance and hygiene is an issue in the app |
| Offers insurance & RSA to every user, giving the car owner peace of mind | Mileage limit is set by the car owner that can limit the usage and flexibility |
| Access to large fleet at affordable rates | High insurance and maintenance charge |
Credit/debit cards, e-wallets, and other widely used payment gateways are just a few of the safe and practical payment methods that the greatest rental car apps should accept. To safeguard customer data and foster confidence, it is crucial to make sure the payment procedure complies with industry standards and is safe. Apps like Getaround and Turo have seamless payment integrations and focus on delivering a reliable customer experience.
By including GPS tracking capabilities into the app, users can monitor the whereabouts of the hired car, guaranteeing their safety and security. It also facilitates the effective management and oversight of the rented cars by the automobile rental firm. Currently, most rideshare apps and car rental apps like Zipcar have the GPS integrated in their website.
The greatest rental vehicle apps should provide a comprehensive description of the terms and conditions, cancellation procedures, insurance coverage, and rental regulations. To prevent confusion or disagreements later on, it is essential to give users clear and thorough information.
Including a review and rating system enables users to share their opinions about their rental experiences and aids in the decision-making process for other users. Additionally, it assists automobile rental companies in upholding quality standards and refining their offerings in response to client input.
Providing dependable customer service via the app, including chat or contact options, enables consumers to ask for help instantly or fix problems. Ensuring a great user experience and cultivating customer loyalty requires prompt and effective customer care.
To manage and keep an eye on car rental operations, including vehicle inventory, bookings, payments, and user profiles, a strong and feature-rich admin panel is necessary. It gives automobile rental companies the resources they need to run their businesses effectively. However, it is essential to hire mobile app developers with relevant experience in building admin panels to save time & cost.
An app for renting a car must have a scheduling calendar for several reasons. The first is just to take consumers’ inputs of the renting dates. In addition, the dates are the basis for generating the invoice. Lastly, a scheduling calendar also avoids double booking.
Policies for users may differ throughout automobile owners. You’ll require rental agreement management features on your app in order to approve them. These choices ought to enable vehicle owners to eSign their terms and conditions at the time of booking by having customers upload and sign them.
Customers should be able to upload multiple identities and address proof documents through your automobile rental app for verification. This contributes to the rental cars and the clients’ safety and security. Additionally, many locations have regulatory obligations for document gathering for car rental companies. The tool that verifies documents will assist you in adhering to them.
When possible, customers frequently choose to hire a car from nearby locations. They employ a distance search filter as a result. The distance filter does not always provide a precise position; therefore it can be ineffective at times. Because of this, it is preferable to have a more precise and dependable map view filter on your P2P automobile rental software. You can hire a mobile app development company in India, like Konstant Infosolutions, to build a seamless, robust view map filter for your platform.
The price to create robust Turo alternatives will depend on the features or services you incorporate in the mobile app development. Additionally, it is dependent on the mobile app development company’s location also.
However, to give you a rough idea, the cost to build car rental apps like Turo with basic features will cost around $20,000. The development of an iOS and Android application with premium features and technology, including all panels, would run you between $35,000 and $40,000 through hiring iOS app development companies.
Fact – Airport transportation is the top application for car rental markets
So, these were the top car rental apps like Turo that are dominating the market currently. All of these ride sharing apps have one interesting thing in common – a robust mobile app. Thus, it becomes essential to hire a top mobile app development company for building an interactive, feature packed platform. iOS development companies in India with a similar past experience and expertise that fall into your budget are an ideal choice.
Also, if you have a robust idea in mind and want to discuss it with the experts, then contact us here for free consultation.
Till then, keep riding, keep building!
A car rental app is a platform that allows users to book & rent a vehicle using their phones. The platform facilitates pickup, drop, and reservation of vehicles on rent at affordable prices without long waiting and heavy documentation.
Car rental apps are one stop solutions to book and renting vehicles without the need owning a car. These apps provide easy booking and payment options for seamless car rental transactions.
Car rental apps like Turo allow users to rent and book a vehicle on rent using their phone. Users can choose a date, schedule a booking, make car rent payments, and browse different car options using the platform.
Some of best car rental apps like Turo in the market are Get Around, Zip Car, Hertz, Enterprise, and Hyre. These apps are easy to use, have minimum processing time, and have user-friendly policies.
Car rental apps like Turo alternatives make money using different revenue models. Some of the most common ways are charging commission on each transaction from car owners, subscription fees, and charging booking fees from users.
Some of the most common benefits of using car rental apps like Turo are convenience, easy hassle-free payment options, safety, better prices, instant booking, and no hidden charges.
Some of the factors to consider while choosing a car rental app are fees & charges, range of vehicles, car availability, booking & pickup process, review & ratings, and app navigation.
Manish Jain is the co-founder and Managing Director at Konstant Infosolutions. He is responsible for the overall operations of the company and has played a major role in bringing Konstant up from its humble beginnings and, with his immense energy and drive, transforming it into a globally trusted name in IT solutions.
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