What is Car-Sharing

What is peer-to-peer car-sharing?

Peer-to-peer car-sharing services are like a car version of Airbnb. They let people who own cars rent them out to others who need a car for a short time. This is a great way for car owners to make some extra money when they’re not using their vehicles. These services work by having car owners list their cars on a website or app, just like people do with their homes on Airbnb. People who need a car can then browse through the available options and choose the one that fits their needs best. This type of car rental is becoming more popular because it’s often more convenient and affordable than traditional car rental options.

There are several companies that use the peer-to-peer car-sharing model, which is a way for people to rent out their own cars to others who need them temporarily. This is similar to how Airbnb works for houses or apartments. Some popular car-sharing companies include Turo and Getaround. These companies have apps or websites where car owners can list their vehicles for rent, while people who need a car can browse through the available options and book the one they like. This model is popular because it often provides a more convenient and affordable way to rent a car compared to traditional rental companies. These peer-to-peer car-sharing services are great for people who need a car for a short time, like for a weekend trip or running errands, and they also help car owners make some extra money when they’re not using their vehicles.

Turo and Getaround

Turo and Getaround are both car-sharing platforms that let people rent out their cars to others, but they have some differences in how they work and who they’re for. Here are the main things that set them apart:

1. Target market: Getaround is mainly for people who need a car for just a short time, like a few hours or a day. Turo, however, is for those who want to rent a car for a longer period, like several days or even weeks. So, if you’re planning a vacation or a long trip, Turo might be a better choice for you.
2. Booking: Getaround lets you book a car right away using their app, and you can even unlock the car with your phone. You don’t have to wait for the car owner to say it’s okay. With Turo, you usually need to ask the car owner first, and it might take up to 24 hours for them to give you the green light to rent their car.
3. Car access: For Turo, the car owner and the person renting the car have to figure out how to exchange the keys, which could mean meeting up in person or using a special box to store the keys. With Getaround, you don’t have to worry about that because you can unlock the car with the app. This works because the car owner has a special Getaround Connect device installed in their car.
4. Insurance: Both Getaround and Turo offer insurance for the people who rent cars and the car owners, but the details might be different. Turo has various insurance plans with different amounts you’d need to pay if something goes wrong (called deductibles). Getaround, on the other hand, has one standard insurance policy with a fixed deductible amount.
5. Operations: Both Getaround and Turo work in the United States, but Turo is more popular in other countries. Up until September 2021, Getaround was only available in a few countries in Europe, while Turo was in many more countries around the world.
6. Fees and earnings: When it comes to fees and how much money you can make, Getaround and Turo have different rules. For instance, Getaround makes car owners pay a monthly fee for a special device, but Turo doesn’t have a similar charge. However, the percentage they take and other costs might be different too. So, it’s important to check out the details for each platform before you decide which one to use.

In the end, whether you choose Getaround or Turo comes down to what you like, how long you need the car, where you are, and how easy you want the process to be. Both of these car-sharing apps let you rent awesome cars for a fun drive.

Car Sharing vs. Traditional Car Rental

Car sharing and traditional car rental are two different ways to rent a car, each with its own unique features. Car sharing, like Turo or Zipcar, is a more modern and flexible option where you can rent cars from private owners or through special car-sharing platforms. It’s great for short rentals, has convenient pick-up and drop-off spots, offers different prices, and gives you access to all kinds of cool cars from regular people.

On the flip side, traditional car rental means renting from well-known car rental companies like Hertz or Enterprise. These rentals usually last at least a day, and you have to pick up and drop off the car at specific company locations. Traditional car rentals have more set pricing and a smaller selection of vehicles that belong to the company. While car sharing is perfect for quick, affordable rentals, traditional car rental might be better for longer trips or for people who like working with established businesses.

The Car Rentals segment is expected to generate revenue of US$104.00 billion in 2023, and the amount of money made from carsharing market alone is expected to be about US$12.88 billion. Plus, by 2027, it’s estimated that almost 1 billion people will be using car rental services. Clearly, there’s a huge demand for these services and they’re here to stay.

How much can you make?

How much money you can make using car-sharing apps like Turo or Getaround depends on several things, like what kind of car you have, how old it is, where you live, the prices you set, and how many people want to rent cars in your area. Both of these apps let you, the car owner, decide how much to charge for renting your car, which can affect how much money you end up making.

For example, if you have a new car, electric vehicle, or more popular car, you might be able to charge more for rentals. Living in a busy city, like New York, or a tourist spot, like Yellowstone National Park, can also mean more people wanting to rent cars, increasing your chances of making more money. It’s important to keep these factors in mind when setting your rental prices, so you can make the most out of your car-sharing experience.

Let’s compare how much money you might make on Turo and Getaround:

Turo:

• There’s no monthly fee to use Turo.
• Turo takes a percentage of the money you make from renting your car, and it varies depending on the insurance plan you pick. They take between 15% and 40% as their cut. If you choose a better insurance plan, you’ll get to keep more of the rental price.
• Turo focuses more on longer rentals, like for vacations or trips. So, you might make more money from each rental, but you may not have renters as often as you would with Getaround.

Getaround:

• Getaround has a monthly subscription fee (around $20 as of September 2021) for the Getaround Connect device. This gadget lets renters unlock your car without a key and helps you track your car’s location with GPS.
• Getaround takes a 40% commission from the money you make when someone rents your car.
• Getaround is more about renting cars for shorter periods, like a few hours or a day. This means you might have renters more often, but you’ll probably make less money from each rental compared to Turo.

Keep in mind that how much money you make on both platforms can be very different depending on your situation. To make the most money, think about things like:

• Setting fair rental prices that attract renters
• Keeping your car clean and in good shape
• Making your car available when lots of people want to rent cars
• Rent the car people are looking for, from commuter cars such as electric cars or more thrilling ones like sports cars

You might want to look into how many people want to rent cars in your area and check out both Getaround and Turo. You can even list your car on both platforms to make the most money possible. Turo has a calculator that can help you estimate how much you could earn by renting out your car. By considering all these factors, you can make a smart choice about which car-sharing platform is right for you and your car.

How carsharing works

To become a host, follow these steps:

1. Check if you’re eligible: Make sure you meet the age, vehicle, driver’s license and insurance requirements of the car-sharing platform you choose.
2. Create an account: Sign up on the website or app of either company, provide your personal information, and go through a background check to ensure you meet their criteria.
3. List your car: Make a detailed listing for your car with photos, a description of its features, and any unique selling points that may attract renters.
4. Set pricing and availability: Decide how much to charge for rentals based on factors like your car’s make, model, and demand in your area. Also, specify when your car is available for rent to accommodate your schedule.
5. Create rental terms: Set limits for how far your car can be driven (mileage limits), fuel policies (whether the renter should refill the gas tank), and any extra rules (such as no smoking or no pets allowed).
6. Manage bookings and communication: Answer questions, confirm booking details, and arrange pick-up and drop-off times with renters. Finding good parking spots for renters can help make the experience more seamless. Be prompt and responsive to ensure a smooth rental experience.
7. Maintain your car: Keep your car clean, well-maintained, and fueled to ensure a positive experience for renters and potentially receive better reviews.
8. Handle inspections and documentation: When meeting your renter, verify their identity, review rental terms together, and inspect the car for any pre-existing damage. Document the car’s condition with photos before and after each rental to protect yourself from potential disputes.
9. Encourage reviews and feedback: After each rental, ask your renter to leave a review and provide feedback on their experience. Use this feedback to improve your service and address any issues that may arise.
10. Monitor your earnings and receive payments: Keep track of your earnings and rental activity, and adjust your pricing, availability, or rental terms as needed to optimize your income from car-sharing. Both Turo and Getaround generally pay hosts via direct deposit to their bank account. Payments are typically processed within a few days after the rental is completed. Be aware of the platform’s commission fees, which will be deducted from your earnings before you receive payment.

What are the benefits of car-sharing?

Car-sharing programs have some cool advantages and some disadvantages, let’s take a look at what some of those are:

Pros

• Extra cash: When you’re not using your car, you can rent it out and make extra money. This can help you pay for things like car payments, insurance, or fixing up your car.
• You’re in control: You get to decide when your car is available to rent, how much to charge, and what rules to set for people who rent it. This way, you can balance your own needs with renting it out.
• Helping out and being eco-friendly: When you rent out your car through car-sharing platforms like Turo or Getaround, you’re not only helping others find a suitable car but also contributing to reducing emissions and promoting sustainability by reducing the need for additional cars on the road.
• Support: Turo gives you help with things like customer service, insurance options, and a way to manage bookings and talk to renters.

Cons

• More wear and tear: Car-sharing vehicles might make it wear out faster, and you’ll need to fix it up more often.
• Time commitment: Being a host means spending time on things like managing bookings, cleaning your car, and talking with renters.
• Dealing with problems: Sometimes, you might have to handle disagreements, car damage, or insurance stuff.
• Following the rules: You should make sure you’re following local laws when renting out your car, which might take some extra research.

Verdict?

Many people find that renting out their car on Turo or Getaround is a good way to make some extra money with minimal effort. It can be a great side hustle that lets you decide how often you want to rent out your car. Compared to other side gigs like being a rideshare driver or delivering food, renting out your car requires less work. This makes it an attractive option for those looking to earn some extra cash. If you’re able to manage the wear and tear on your vehicle and handle potential disputes, renting out your car could be a smart financial choice.