BABY YOU CAN DRIVE MY CAR
Peer-to-peer vehicle sharing offers rental services
Airbnb gained popularity among young generations and disrupted the hotel industry with its peer-to-peer model of booking overnight accommodations—45% of youth in the U.S., UK, and Australia have rented out or are interested in renting out their home using such a service. The same model is expanding to car sharing as new services allow peer-to-peer car rentals, and young people are interested: 40% already have or are interested in renting out their cars.
Operating in 4,700 cities across the U.S., Canada, and the UK and planning to expand after closing a $104 million round of funding, Turo offers peer-to-peer car rental. Like a typical ride-share service users can book a car through the app, and then pick up their car or have it delivered by the owner. Unlike most car rental agencies that allow renters to return the vehicle to another agency in a different location, return of a Turo rental must be coordinated with the owner of the car, meaning it will likely be in the same location where the car was rented.
Auto brands are embracing the car share model, and General Motors plans to expand its Maven program this summer with a pilot program of a peer-to-peer service. Rather than renting a car directly from GM, the company will allow GM vehicle owners to list their vehicles on the Maven app for rental. Like the Maven service, renters will return their temporary vehicle back to its original location. The revenue recognized from this expanded service will be shared by GM and the vehicle owners.
Last fall, Getaround partnered with Toyota to make it possible for car owners to put a smart key compartment inside their vehicle to permit another user to unlock the vehicle using their phone, making it possible to exchange cars without in-person interaction to exchange keys. The peer-to-peer car sharing service recently raised $45 million in funding, with plans to expand beyond its current 13 U.S. cities. Getaround also entered a partnership with Uber, wherein non-vehicle owners can become Uber drivers by using Getaround.