Do you want to start a business in the transport industry? But you are looking for something unique than a taxi booking or moving services? A brand new startup idea is catching wind nowadays – The Car Rental Application Business!

Unlike a taxi app startup, you don’t need to manage drivers and worry about giving the best ride experience. Your customers will be their drivers. You need to add interested car owners to your car rental app database and/or partner with existing offline car rental services like Turo, Hertz or Getaround.

This is just the beginning! We are sure numerous questions are bubbling up in your mind right now! Let this blog be your one-stop guide to discover how to make car rental apps like Turo or Hertz!!

The secret to getting ahead is to get started!

Relate with this? If you want to become an entrepreneur and launch your car rental application, let us tell you your first step! You will have to consult an app development company that can help you.

Know Your Competitors!

Before you set your foot in the car rentals industry, isn’t it important to gauge the competitors?

Yes, absolutely!

At first, you must study the market and find out which companies are doing better in the market and then fixate on your car rental business app idea.

  1. Alamo Car Rental App
  2. Enterprise & National Car Rental.
  3. Avis
  4. Budget Car Rental
  5. Payless Rentals
  6. Dollar Car Rental
  7. Hertz
  8. Thrifty Car Rental

Must Note! – Vehicle rental industry is huge. Your car rental application can have a drop-down list. This list can include categories of services like –

  • Airport pickup car rental applications
  • Wedding function or party car rentals
  • Business fleet car rentals
  • Vacation leisure car rentals

Mordor Intelligence states these two things in its report:
The expectation is to reach USD 139.65 billion by 2027. The estimated CAGR projection is more than 7% by the end of 2027!

Why Choose on Demand Car Rentals App Development? Is It a Lucrative Business Venture??

We don’t say anything without due proof!

Yes! The statistics show it all!

The graph below shows the journey of car rental market share. The observation period is from 2016 to 2027. And the amount is a billion US $.
car rental forecast statistics

How well are Car Rental Apps like Turo Doing?

Turo Car Rental App

Turo was found in the year 2009. With investments of almost $216 million from the auto company ‘Daimler’ and insurance company ‘Liberty Mutual’. In April 2018, Turo accepted on having 230,000 vehicles listed on its platform within four countries with a new partnership blooming with boutique rental car companies.

Enterprise Rent-A-Car Company

Last year’s valuation of Enterprise was around $16 billion. The top three car rental companies National, Alamo, and Enterprise Rent-A-Car and all owned by Enterprise. They are worth more than half of the total car rental market in the US.

Uber Car Rental Service

Uber, the taxi service giant, announced on 11 April 2018 that it is partnering with Getaround, a San Francisco based startup worth $88 million through investments received from various companies including Toyota.

Don’t be unnerved by these large numbers from apps like Turo, Enterprise, and other rent a car businesses. The car rental industry’s competition is still very less in this market, and you can definitely be David to Turo’s Goliath.

How Does Car Rental App Business Work?

It’s much similar to taxi services and yet easier. When the users only need a vehicle for their short or long trips without the driver, they go for a car rental model. Most of these car rental services are for friends and family trips. Which means holiday seasons are the busiest time of the year for this industry.

These car rental application businesses offer cars from station wagons for a large family to high-end luxury and sports cars, all for private use. It doesn’t mean that you need to own all these cars. Your car rental app startup just needs to have a database of car owners and rental businesses that offer these cars. You work as a mediator through your car rental service app.

Cost of a Car Rental Trip

  • All the maintenance of the car and costing is looked after by the car owners.
  • The costs incurred for ongoing travel like fuel consumption, toll tax, etc. are paid by the user.
  • Your investment in this venture is only building and maintaining the mobile app and holding an office to deal with the mediation.

You just offer an online portal for these renters and rentees to communicate and for that, you get a commission from each deal. You and the vehicle owners decide the percentage of commission over rentals.

Building a car rental app has immense potential to grow and prosper as a stand-alone business.

How to develop a Car rental app?

To build an app, you need an experienced mobile app development company. You can hire such companies to build, maintain and periodically update your mobile app.

The beauty in the app making is that these apps are very similar to existing online taxi service apps like Uber and Lyft so an Uber-like app development company can be easily transformed and customize the app according to your needs and specification.

Such Uber-like Clone apps have a basic structure of an ideal taxi service app. With proper tweaking, you can build your own on-demand car rental service app today.

Most Important Features to Have in a Car Rental App

Vehicle user

  • Sign up/Login to Manage User Accounts
  • Renter Profile
  • Search Option with Advanced Filters
  • Pickup and drop off location for the vehicle
  • Ever Updating Car Listing
  • Details Regarding CarModel, Looks, Comfort, etc.
  • Multiple Payment Gateways for User
  • Review of Vehicle Conditions by Users

Vehicle owner

  • Sign up/Login to Manage Vehicle Owner Account
  • Rentee Profile
  • Trip Completion/Cancelation Status
  • Trip Fare
  • Payment Received
  • Push Notification (For Both Parties)
  • GPS Integration in the Car

Admin Panel

  • Admin Dashboard Panel to View and Operate Business
  • Payment Management
  • Reporting and Analytics of All Deals
  • Managing Fares and Commissions
  • Interactive Statistics to Stay Updated
  • Full Control of User and Owner Profiles

Advance Car Rental App Features

There are many advanced features that you can add as per your app development budget. Some of these features are

  • Find and Unlock Available Cars Directly with wireless Technology
  • Giving AAA-type Road Assistance Service
  • Giving Map Points to Nearby Gas Stations and Motels

Benefits of Developing Car Rental Application & Services

Building a car rental app will benefit your business in such ways that you would’ve never witnessed before. To give you a factual and proper idea, here are some of the benefits of opting for a car rental app development

Real Time Vehicle Tracking

Real-Time Vehicle Tracking

Offering an optional setting to the customer to let the app live track the location of the car for the security of the user, is a handy feature when traveling through highways and going long distances. The users will be very thankful to have such a car rental app feature.

Getting Higher Visibility

Getting Higher Visibility

In this day and age, when everybody is on the internet, having your startup exist on the internet gives you higher visibility leading to more customers and a higher revenue stream. Also, most of the people that look for a car to rent usually search online, so having a car rental app on the phone is easier for them.

Auto Pilot business

Auto-Pilot Business

Building a self-sustaining app helps the business to grow on its own. As no negotiator is needed to make direct contact with users or car owners, the working becomes automatic. The user contacts the car owner and finalizes everything. Your app has to just keep running smoothly.

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Revenue Model – How Can You Earn from Car Rental Application TODAY?

It is obvious that you are launching an application for renting cars to drive an earning out of it. Hence, while building the mobile app strategy, create maximum channels for your revenue.

Car Fleet

Car Fleet of Your Own!

Owning the vehicles yourself will enable you to earn from charging the vehicle fees. All such earnings can be re-invested in maintaining the cars.



Since the registered drivers get rides from the app, the application charges a fixed commission from these drivers.Also, the commission from users who rent cars is a great source of income. The app can charge extra bucks for the extra hours the vehicle is rented for.

Cost Factor of Building Car Rental Application

Financially speaking, the car rental application development can cost around $18000 to $28000.

While this might not be an exact figure, the cost of developing an MVP with essential features and an app with advanced features will differ!

The platform, framework, and language used in building a car rental app like Turo affect the cost of creating such an app.

Download our FREE eBook on deriving the Application Development Cost prepared by the experts at Excellent Webworld.

Parting Words – How Can Excellent Webworld Help in Building Car Rental Application?

Starting a Car rental business is a brilliant idea! That being said – if it is built correctly, it can yield a lot of success. This business, once set, grows on its own, giving you more time to improve your business model instead of trying to maintain the current one.

If you find an excellent team of mobile app developers, half of your work is done. Your search for the best car rental app development company ends at Excellent Webworld. Talk to us for more information!

Frequently Asked Questions – On-demand Car Rental Application Development

The main features of a car rental application are:

  1. Renter, Driver, Vehicle owner profile
  2. Vehicle specs description section
  3. Payment management
  4. GPS integration
  5. Car model search option

and many more.

Not only Turo, but these strategies will help you make money on any car rental application.

  1. Buy a premium and expensive car, which people consider a luxury. Then, start renting it out for a cheap amount. The vehicle will be in such a high demand that it will yield a lot of money in a very short period.
  2. Charge vehicle commission from drivers as well as riders.

The car rental app companies make money through vehicle commissions, booking commissions, platform commissions, etc.

Car rental can be a great business venture. To attain success in the same, you would have to provide top-quality customer services.

Paresh Sagar

Article By

Paresh Sagar

The CEO of Excellent WebWorld and a digital marketing expert. Paresh loves to experiment with new techniques and strategies. The posts written by Paresh are awesome for businesses who are seeking for marketing ideas.