Car rental businesses are the new trend and the one leading this trend is the Turo business model. The peer-to-peer rental businesses are expected to grow by approximately 700% in the coming eight years. There are a number of factors behind the driven growth, including fewer carbon emissions, which leads to a greener environment, and a growing global preference for a minimalist lifestyle.
Both incumbents and new entrants in the peer-to-peer automobile rental business, of which Turo is a significant player, are focused on inducing sustainable and minimalist growth.
Turo has been compared to Airbnb, is as straightforward as they come. You only need to provide a place and a date. Furthermore, users can narrow down their search by picking a specific brand of a car, type ( convertibles/vans), and model.
You can also get your app like Airbnb, click here!
Turo, which began as RelayRides in 2010 and now has a fleet of over 350,000 cars, is a peer-to-peer car rental platform. It has achieved a lot of milestones. Let’s have a look at some of the facts about Turo:
The Turo business model has inspired a lot of business owners and entrepreneurs. Many of them plan to follow this business model to launch their own peer-to-peer car-sharing business in the market. Here is the success timeline of Turo:
Jonathan Tilmann and Shelby Clark established Turo, a peer-to-peer car-sharing platform, in 2009.
When Tilmann and Clark were looking for a means to share a car for a weekend vacation, they came up with the idea for the company. They noticed that no service existed that allowed users to accomplish this, so they invented one.
Turo is a unique car-sharing service that allows users to hire out their automobiles to others. This allows people to supplement their income by renting out their vehicles when they are not in use. It also allows folks to have a different car to drive while on vacation or business. Turo was once known as RelayRides, and it allowed customers to hire out their automobiles to others. The company changed its name to Turo in 2012 and began renting automobiles from businesses rather than individuals.
Since then, the company has only seen growth!
In this 21st century, after the new technological advancements, the online P2P car-sharing industry also grew. But, a single business model cannot satisfy the needs of a huge range of targeted audiences. This is the reason, Turo had to adjust and broaden its business model. This business made sure that the company not only offered a car-sharing service but also helped in payment management. This made Turo’s business model successful and compatible with today’s digital world.
Isn’t this an excellent way for people to earn money by just renting out their vehicle? There are so many people in the market who find this idea fascinating. This proves that there is a huge scope for your own car-sharing business in the industry. Get in touch with our expert developers to launch your business online at the most affordable price.
The Turo business model looks like this:
The Turo business model consists of very effective and well-planned monetization strategies.
Peer-to-peer car rental businesses charge a commission fee on every car rental booking. This is one of the most popular sources of income. Turo has a commission fee plan to charge approximately 25% on bookings.
The business also charges its customers if the given limit of kilometers is exceeded. An additional kilometer fee is charged. Host fees, such as damage claim filing charges (applicable only if pre and post-trip vehicle condition photographs are not uploaded), order cancellation charges, vehicle misrepresentation charges, maintenance policy violation penalties, and more, add to the monetization strategies in the Turo business model.
Turo also charges its customers a variety of guest fees. EV charging fees, petrol replacement prices, additional usage fees, claims processing fees, guest no-show charges, late return fees, and smoking and pet policy violation fines are just a few of the fees.
Here are 5 lessons that you can learn from the success of the Turo business model:
1.Find Your Unique Value Proposition
It’s critical to start by defining your value proposition when presenting your company. Turo does a fantastic job of emphasizing how unique its service is and how it can save car owners money.
2.Concentrate on the Issue at Hand.
One of the most common mistakes made by companies is focusing too much on their product rather than solving the problem. Turo described the problem they’re trying to solve (high automobile ownership and maintenance costs) and how their service can help.
3.Know Why Your Solution is Superior to the Alternatives
You must know why your solution is superior to the alternatives to persuade investors to invest in your firm. Turo showed how their service is less expensive, more convenient, and more environmentally friendly than traditional automobile rental.
4.Demonstrate That Your Product has a Market
It is critical to demonstrate that your product has a market. Turo accomplishes this by emphasizing the vast potential market for its service and demonstrating how it may be used.
5.Demonstrate Your Team’s Experience and Expertise
It’s a no-brainer to emphasize your team’s experience and skills while launching your business in the market. Turo features a well-designed team slide that emphasizes their team members’ backgrounds and experience in the automobile rental sector.
6.Have a Clear Picture of the Future
You must demonstrate that you have a clear plan for the future to persuade investors to invest in your firm. Turo accomplishes this by laying out its five-year strategy and showing how they intend to expand its company.
7.Anticipate and Respond to Potential Complaints
Investors are generally wary of new businesses, so being prepared to respond to any potential objections is critical. Turo accomplishes this by anticipating and resolving common concerns, such as a lack of experience and a high cost of ownership.
Turo has a huge client base because of its unique selling and value proposition. The success story of the Turo business model made a lot of business owners follow its footsteps of Clark. The question that comes up now is, how will this success story help in scaling your business?
For a P2P car rental business, choosing a car rental software, business model, and revenue model are just a few points on the road map. Following that, businesses can concentrate on licensing, branding, pre-launch marketing, setting up newsletters, selecting distribution channels, and planning announcements while the online P2P automobile rental platform is being developed.
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