Peer-to-Peer Car Rental Marketplace

Do you go on trips often? Be it for vacations, business, or anything else,

Well, if you do, you might know just how hard it can be to get affordable rides or how expensive it is to rent a car when you need one to get around the place.

Inflation has worked its way all around the world, and everything has gotten crazy expensive, including short-term rentals such as rental cars. Thankfully, though, some of the brightest minds on the planet had once come up with the concept of the sharing economy, and it's really saving our wallets these days.

I'm talking about peer-to-peer rental marketplaces for short-term rentals, like Airbnb, Peerspace, and more specifically, Turo, the perfect example of a P2P marketplace for short-term car rentals.

With platforms like Turo, people these days can quite easily find an affordable car in a foreign place for the short period they need it, and we can see from the stats that it has resonated with the population.

Peer-to-Peer Car-Sharing Market Size

A market study reveals that the peer-to-peer (P2P) car-sharing market generated $2,475.3 million in revenue in 2023 and that it is expected to reach $7.225 million by 2030, with an estimated growth rate of 15.8% during 2024–2030.

People clearly find P2P car rentals valuable for reasons like low cost, the convenience of such platforms, concern over greenhouse emissions, etc. As a result, the market is growing at a rapid rate.

Since more people are getting into peer-to-peer car rental marketplaces, it's not a bad time to learn more about them. So, if you want to, this blog is for you.

Also, if you are an aspiring entrepreneur and you want to learn about P2P car rental marketplaces because you are thinking about starting one yourself, we have a bonus section just for you at the end of the blog.

So don't miss that out, and keep reading.

What Is a Peer-to-Peer Car Rental Marketplace?

If you haven’t heard much about peer-to-peer car rental marketplaces, here's the thing:

Imagine you go on a short business trip to a nearby city for a few days and you need a car to get around but you don't have one and rental cars are too expensive for you.

Luckily, your friend has a car that they don't use much these days and they tell you to take it for the trip and just treat them to lunch when you get back. That's great, isn't it?

Now imagine you are going on the same trip but in a foreign country…

That's unfortunate, right? Not everyone has an international friend who also has a car that they don't use much. But what if you did?

Well, not the friend but people who don't use their cars much are everywhere and they may be willing to lend it to a stranger in need, for a fee that is more affordable than those traditional rental cars.

This is what peer-to-peer car rental marketplaces are for. To help you find such cars from such people who let you borrow them for a short period.

On the flip side, if you're not using your car much, you can be the one to lend it to others and make some extra cash with the car, instead of having it sit in the garage and gather dust.

These platforms follow the peer-to-peer business model that allows them to make money, simply by giving a platform for people who need stuff to connect with people who have it.

Top Peer-to-Peer Car Rental Marketplaces!

Now that you've got an idea of what peer-to-peer car rentals are, shall we check out some of the popular P2P car rental marketplaces?

Knowing them can give an even better understanding.

1. Turo

Turo, known as the ‘Airbnb of cars,’ is one of the most popular peer-to-peer car rental marketplaces globally. It operates in several countries and allows car owners to rent out their vehicles to individuals in need of short-term transportation.

The business model of Turo provides a platform for both car owners and renters to connect, facilitating the rental process.

2. Getaround

Getaround is yet another carsharing marketplace that operates in several cities across the United States. This platform allows car owners to rent out their vehicles by the hour or day.

It is mainly popular because of the wide range of vehicles it offers its renters, from compact cars to luxury vehicles.

3. SnappCar

SnappCar is a peer-to-peer carsharing platform that operates primarily in Europe, particularly in countries like the Netherlands, Sweden, Denmark, and Germany.

While it may not be as well-known globally as Turo or Getaround, SnappCar is indeed popular within its operating regions and has gained a significant user base.

Reasons Why People Choose P2P Car-rental Marketplaces

1. Affordability:

Peer-to-peer car rentals are more affordable compared with traditional car rental services. This is because car owners can offer their vehicles at a lower price, while renters can save money by renting directly from the owners.

It doesn’t have the same overhead costs as traditional car rental companies.

2. Variety of Options:

Peer-to-peer car rental marketplaces offer a wider range of cars than traditional car rental services.

It can be a luxury vehicle for a special occasion or a budget-friendly option for a weekend trip, renters can find the exact type of car they need.

3. Flexibility:

Peer-to-peer car rentals are super flexible. Renters can select where they pick up and return the car and how long they keep it.

This is great for travellers who only need a car for a little while or want to pick up and drop off the car in different places.

4. Convenience:

Peer-to-peer car rental websites make renting a car super easy. Users can pick from lots of different cars nearby and grab them whenever it suits them best.

How Does The Typical Peer-to-Peer Car Rental Market Work?

We just explored what a P2P car-sharing platform is and why it is popular in the previous sections.

Now, shall we take a look at how it works? Read on.

1. Listing a Car for Rent

First up, the car owners sign up on the platform and create an impressive listing for their car. They'll add info like what kind of car it is and what it looks like with some pictures so people looking to rent can get a better idea.

Then, they get to decide how much they want to charge for the car—by the hour or by the day.

The platform will help them set the price based on things like their location, car type, demand, etc.

2. Searching for Available Cars

So, while car owners are busy putting their cars up, people looking to rent a car can start to look around at the options they have on the platform.

All they need to do is enter their location and dates, and they can access the available cars, complete with all the details and how much it'll cost them.

Also, if they're particular about what kind of car they want, like maybe they only drive automatics or they want something super fancy, they can use filters to narrow down their choices to find the perfect ride.

3. Making Reservations

Say the renter finds the perfect car. Great! Now they just have to send over their details and ask to book it.

The car's owner will take a look at their request and decide if it's a go based on their schedule and a few other things. If they agree, the renter gets a confirmation, and they can chat about where and when to pick up the keys.

On D-day, they take the car from the spot they agreed on and then bring it back when they're done. Easy!

4. Payment Process

The platform keeps your payments safe and sound. The renter can pay with their card, PayPal or any other options the platform may offer—super easy.

Plus, the platform might throw in some insurance to keep everyone covered while they're renting the car.

5. Communication Between the Renters and Car Owners

The car owner and renters can chat instantly using the platform's messaging or other contact options.

This makes it easy to plan when to take and return the car, and they can also ask any questions they have about the car.

6. Review and Feedback

These car rental platforms let renters and car owners give each other ratings and feedback after a rental.

It's like sharing your thoughts on how things went. This helps others feel confident about booking, knowing they're in good hands.

How Do Peer-to-Peer Car Rental Marketplaces Make Money?

In the previous sections, we saw how peer-to-peer car rentals are becoming more popular because they're a more cost-effective option than traditional car rentals and help car owners earn money from their unused cars.

Now let's take a look at the several ways in which these peer-to-peer car rental marketplaces earn their revenue.

1. Commission-Based Revenue Model

A common way in which peer-to-peer car rental platforms make money is by getting a cut on each rental.

They might get a chunk of the rental fee, like a percentage, or a set amount for each rental.

The cut they get can range from 10% to 30%, depending on the platform. This means they earn without the hassle of owning or managing loads of cars.

2. Listing Fee Revenue Model

Another way for the platform to earn cash is by charging car owners a fee to list their cars on the platform. They pay this fee to showcase their cars for rent.

The fee can be one-time or paid monthly or yearly.

3. Subscription Revenue Model

They can also rake in cash with a subscription plan. Car owners pay a monthly or yearly fee to use the platform and rent out their cars.

It's a good choice because it gives car owners a steady income from renting out their cars regularly.

4. Value-Added Services

The platform can boost their earnings and draw in more customers by offering additional services like insurance, roadside assistance, and cleaning.

It makes the rental experience better for the users, and the platform makes extra cash too.

With that, we have discussed the fundamentals need to know about the peer-to-peer car rental marketplaces.

Now here’s the bonus section for people who want to set up a p2p car rental marketplace.

If you are one of them, don't miss out on the helpful information.

How You Can Set Up An Online P2P Car-Rental Platform

If you want to start a car rental business following the peer-to-peer model, and if you are looking for ways to set up your online platform, here’s what you need to know.

When it comes to launching your P2P car rental platform(web & mobile apps), you've got two main options: custom development or a ready-made solution.

1. Custom Development

Custom development is for innovators seeking complete control. Crafting your platform from scratch allows for tailored features, like a bespoke suit.

But it does come with its complexities—it demands time, money, and expert teams for excellence. Maintenance is also an ongoing task.

2. Readymade Solutions

If you're unfamiliar with the term, ready-made solutions are online platforms (websites and mobile apps) that come pre-built with the features and functionalities necessary for a business platform.

They can be purchased by businesses, rebranded, and launched as their own platforms.

Think of them as the IKEA furniture of the tech world—everything's conveniently packaged and ready to use.

These platforms are designed with user-friendliness in mind, and they help you save time and resources in development processes.

What Can I Choose?

Well, each business has different needs. If you've got the resources and desire freedom over the workflow, design or features and functionalities, custom development might be your choice.

But if you want a quick, budget-friendly launch, ready-made solutions are the way to go. So think of your needs and pick the approach that suits you the best.

Also, if you happen to decide on a ready-made solution, why not check out our car rental app solution?

With our solution, you get,

• Free app submission
• Complimentary server installation
• Free white labelling
• Access to 100% source code
• Ongoing support, even after app rejection

Our user-friendly and secure platform (Android and iOS apps and web) helps you attract users from around the world with its remarkable set of features.

You can smoothly manage your business with the help of our admin panel.

Conclusion

As we wrap up the guide now, shall we recall some of the key takeaways from the blog?

• Peer-to-peer car rental marketplaces offer affordable, flexible, and convenient alternatives to traditional car rental services.
• With platforms like Turo, Getaround, and SnappCar, individuals can easily rent out their vehicles or find a rental car for their specific needs.
• Whether you're a car owner looking to earn extra income or a traveller seeking budget-friendly transportation options, peer-to-peer car rental marketplaces provide a win-win solution.
• By leveraging innovative business models and technology, these platforms are reshaping the transportation industry.

So, if you feel like delving into the world of peer-to-peer car rentals, congratulations!

Whether you are an individual looking to make money with your underused cars or an entrepreneur looking to enter the sharing economy, this industry has much to offer you.

Here's to smooth rides and happy renting!