Do you want to start a business in the transport industry but looking for something different than a taxi booking or moving services? There is a brand new startup idea catching wind nowadays, Car Rental App 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 own drivers. All you need to do is add interested car owners to your car rental app database and/or partner with existing offline car rental services like Turo, Hertz or Getaround
With annual revenue of $30 billion in the US itself last year, Car rental industry is growing in colossal size. With the advent of car rental app development in the car rental market, this amount is predicted to double in just a couple of years.
(Source: Auto Rental News)
Top Car Rental Companies of 2021
The top car rental app companies each own three child companies under them.
Enterprise Holdings: They own the biggest three Alamo Car Rental App, Enterprise, and National Car Rental.
Avis Budget Group: They own Avis, Budget Car Rental, and Payless Rentals.
Hertz Global Holdings: They own Dollar Car Rental, Hertz, and Thrifty Car Rental.
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’. Recently in April of 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 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
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 a technical mobile app development team. 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
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
Benefits of Developing Car Rental Service App
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
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
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.
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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Starting a Car rental business is a brilliant idea that if built correctly, can yield a lot of success. This business once setup grows on its own, giving you more time for improving your business model instead of trying to maintain the current one.
If you find an excellent team of top mobile app developers, half of your work is done. Your search for the best car rental app development company ends at Excellent Webworld.